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Current Debt Repayment Plan

November 28th, 2012 at 02:27 am

Currently, since my parents are taking care of my debt, the only thing that comes to mind are student loans ($25k), 1 credit card ($1,700 @ 18.99%), medical collections ($8,300), car loan ($9,500 @ 11.5%), timeshare loan ($7k @ 17.5) and sallie mae loan ($9,900 @ 6%).

*medical collections will be paid off by the end of this year with the money i have in savings.

Staring in Dec I'll get $2,231 net. Then it'll increase another $31 in Jan (military pay raise has been approved).

Currently my debt costs me $850/mo (this amount includes monthly bills such as insurance as well) and that's with me paying the minimums. But I'm going to add $100/mo to that making it $950/mo.

*i'm not paying for rent or anything else right now because i'm deployed

This is what is in effect for Dec 2012 til abt July 2013:

Sallie Mae deferred but earning interest. ($76)
Student loans deferred but NOT earning interest. ($190)
Capital One is paid off. ($20)
Adding an extra $100/mo to debt payments.

That is equal to $386/mo.

Emblem $1,700 @ 18.99% minimum is $38 (goes down monthly in correlation to amount owed)

So that should total $424/mo then in Jan that will increase to $455. This should take a total of 5 months to pay off.

When I get back home, I want to re-finance my auto loan (for 48 months) and my mortgage loan (for 7-10 years).

The mortgage loan I want to pay off by April of 2014 no matter if I get that re-fi on it or not. But come Nov 2013 I'll only be able to put $397/mo towards it because I'll be paying Sallie Mae again at $190/mo.

Once the mortgage loan is paid off then I'll pay off Sallie Mae loan at $587/mo but I'll also pay about half of it off in one large chunk.

So therefore my plan is basically this:

Emblem - pay $455/mo - pay off by April 2013
Mortgage - pay $397/mo - pay off by April 2014
Sallie Mae - pay $587/mo - pay off by Nov 2014

After that I'm not sure which step to take next. Either pay off student loans, build up my emergency fund (i already have $5k), start contributing to my retirement again, or a combination of the three.

*I will not be paying off the auto loan because I need the credit, but it WILL get re-financed.

*I need to take into account that I will be receiving at least two pay raises between Jan 2013 through Dec 2014. And whether to put that amount solely for student loans and/or retirement until I pay off all my debt.

*Also in April I'll have my tax refund by then. It should be in the range of $1,500 at least. I'm not sure where to apply that though. Pay down debt? Add to savings? Add to retirement?

I can't wait til I have the majority of my debt paid off and I can add my tax refund to my savings/retirement EVERY time! =P

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