I’ve been completely slammed at work and my class load is intense – so much reading. I’m trying to hang in there but OMG sometimes I just want to have a drink and let loose. By Sunday evening, I need to have done all my accounting homework, take a quiz and then read 2 chapters in American Politics & take another test. I’ve been reading nonstop for a week and a half now. I’m tired
This week, two, yes, two fabulous things happened to me. First, I received a packet in the mail from Bank of America that they are going to permanently modify our mortgage. Payments are going to be $1661.73. Our trial monthly payments were $1725.25 and our original mortgage payment was $2044.15. We get to save $382.42 a month! OMFG! I can’t believe it! We signed the documents & got the required cashier’s check out via Fedex today.
The second awesome thing to happen was I paid off the remaining balance of our Capital One card. Total of $477 and some odd cents. I’m so happy this stupid thing is paid off. It won’t be used again & currently sits in a box in my closet. I only put my Weight Watchers’ monthly bill on it and set up an auto payment to pay it in full. Hopefully, this will increase my credit score since I want a bigger house soon.
Up next is my Visa card @ $5,500. DH & I have bonuses coming in & as much as I want to use it to pay towards the Visa, I can’t sleep with not having a good emergency fund. I’m planning on saving all the bonus until our baby emergency fund hits $5,000, if there is anything left over, I will definitely be using that towards this debt. For now, I’m thinking that since we saved $382.42 per month & I budget about $450 for credit cards, with a total of $832.42. I currently also save $650 per paycheck into savings and once the baby emergency fund hits $5,000, I’ll stop my contributions for now. I will use this towards paying the Visa. Essentially, after the 17th of this month, I should have the following done:
- Baby Emergency Fund fully funded at $5,000
- $832.42 + 1300 ($650*2 paychecks) = $2,132.42 snow flake
Which means, I will be done with this visa card by 2.5 months.
After that, I’m going to tackle my car payments. I currently pay $580.36 a month and if I throw the huge snow ball of $2,132.42 a month towards the car, the car should be paid off faster than the 5 years. $2,132.42 + $580.36 = $2,712.78. Current, loan balance is around $31,418.94. If I can stick to this plan, ahem if Murphy can leave me the hell alone, I should be able to pay the car off in 11.58 months. OMFG that’s like by next January.
Once the car is paid off, I’m planning on snow balling $3,293.15 ($2,712.78 + 580.36) towards the Line of Credit, balance of $12,138.75. I currently pay $250 a month towards this account. $12,138.75/$3,543.15 = 3.4 months.
Sallie Mae Students Loans would be up after that. I’m in deferment until I graduate in 2 years but with this plan, I should I have the SL paid off before then. $13,000 / $3,543.15 per month until it’s paid off, which is about 3.6 months.
Basically, I can have ALL of our debt paid off in 21 months. 21 MONTHS. I have a fantastic snowball calculator that I’m planning on putting all my debt into and see if this is really doable for us.
In the meantime, can you say that I’m excited? I’M SO EXCITED!!