Debt paying goals in 2011

January 7, 2011 at 9:23 am (paying debt)

In January 2010, I had $36,479 in debt. A year later, it’s down to $29,289. I have paid off $7,190. That breaks out to an average of $599.17 monthly. I guess $600/month isn’t bad! However, it’s not all that great either! I would love to do $10,000 this year – that’s a nice big round number. I’ve got about $29K of debt left to pay off, and I’d love to do it in 3 years. Not sure I can do that, but maybe if I apply myself I can. One good thing in my favor – the more debt you pay off, the less interest you have to pay, and the more percentage goes towards the principal. So the closer you get, the faster it gets paid off!!

In order to make at least $10,000 of debt payment in 2011, I will have to pay an average of $750/month. That will end up as $9,000, and I expect I’ll get about $800 from my tax return and probably find a could hundred in snowball extra payments to round it off. Hmm. That is a high bar I’ve set for myself, compared to my past track record. An extra $150/month in debt payments? How can I make that happen?

When I started writing this post a few days ago, I realized that in order to make that goal, which in the back of my head I was thinking was a fictional, unattainable goal, I would have to buck up, suck up, and buy less. In other words, I needed to budget like no one’s brother. So I looked at my budget (which I hadn’t been paying close attention to for quite some time) and realized that I could tweak it from my 2010 numbers and probably manage to milk out a few extra hundred per month. So I’m giving it a shot.

If I can follow my new/2011 budget, spending $2,450/month, and with making $3,000 – $3,100 monthly plus getting $400-$450 from J in rent, I should conceivably be able to pay at least that amount, if not more, every month!!!

It’s been a while since I’ve been that strict with my spending, maybe even not ever! Previously I didn’t really care if I went over in a catagory, but I’m going to really have to be careful with that this time around. What, $30 left for groceries for the next week and a half? D’oh! Let’s clean out those canned goods in the cupboard!

Fingers crossed,
debtmaven

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