Almost 1-year, am I meeting my repayment goals?

November 24, 2009 at 9:42 am (debt stats, goals)

I began this blog, and a budget, in Oct. ’08, but I didn’t begin paying down debt until the start of 2009. As the year comes to a close, I decided to do a check-in to see if I’ve stuck to the plan and am on track to pay off all my debt within my planned 5.5 years.

I originally planned on my debt repayment journey taking a full 6 years, but thought I could do it by my birthday in May, instead, so I shortened it to 5.5 years, as an arbitrary, but hopefully realistic goal.

If I divide my initial debt, $45,765, by 5.5 years, that comes out to $8,237 per year, or just over 18%.

It’s funny, I recently updated my No Credit Needed chart, and thought, hmm, looks like I’ve been doing pretty good so far – the pie wedge shape that is “paid” seems pretty large (it is 16.18%), which is completely opposite of how I thought I’d been doing! I had fallen off the budget bandwagon for 2 months earlier this year, so thought I was seriously behind. I’ve only paid off $7,500 so far this year and had been thinking how poorly I’ve done.  

Turns out I’m pretty darn close to where I should be. I’ve done better than I had realized.

I don’t know that I can completely pay an additional $737 (the remaining balance I need to pay to meet my 18% goal) off before the end of December, but I will be very close! I could always raid some of my mini-funds/emergency fund to pay it all and reach my goal, or maybe I’ll just let it slide. There’s a chance I might actually get a small bonus from work (we’re on the edge of making it!), so I may be able to make up any lost ground in January.

I’ll do a follow-up post beginning of January to fill you all in on my progress and the final result.

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2 Comments

  1. Money Funk said,

    Great job! But did you calculate the interest accrued while paying off the debt? (this is an error I made while calculating my progress)
    Try Whats The Cost for a true picture. Hope the move went smoothly.

  2. debtmaven said,

    Hi Money Funk! Happy post-Thanksgiving. Move is now 99.9% done. Whew! We’re exhausted. No turkey and lots of exercise, I think I lost more calories than I gained.

    The $7,500 is a flat reduction in principal. I spent way more than that if I include interest. I know later on in my debt-repayment cycle I’ll be paying it down even faster, as the interest amounts are reduced and my money goes more towards principal. So on a flat scale (not thinking about how snowballing works), I’m behind. If I consider the concept of snowballing I’m doing just fine.

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