After I paid off the remaining balance on my car loan a few weeks ago, I enjoyed the luxury of a greatly reduced debt load and am highly motivated and focused on paying the remaining balance on my line of credit from a major bank and my MasterCard.
I created a chart below detailing the remaining debt that I have to pay off. Luckily, I only have two forms of debt remaining with one of them being a really low balance. I am aiming to be completely debt free in the next 3 months if possible.
As you can see, I owe just a little over $2,000 and I will be using the following method in eliminating the remaining debt:
- Entirely pay off the remaining balance on my MasterCard and put about $100 towards the balance on my line of credit.
- Once the credit card debt is eliminated, I will put all free money used to pay off the MasterCard on a monthly basis onto my line of credit.
- Stop adding money to my high interest savings account (usually around $150/monthy) and add this amount to repaying my line of credit
- All money remaining from my bi-weekly budget will go to debt repayment. This varies all the time depending on what part of the month I am as I tend to pay more in expenses early in the month and barely any during the second half.
Once I receive some extra money from my budget or by any other means, I usually transfer the funds from my chequing account to my line of credit on-line. This eliminates any hassle of travelling to pay off debt and tackles the problem as quickly as possible.
If all goes according to plan, I should be debt free by the end of November! Excited is something that barely describes what I am feeling. It is extremely hard to mimic the feeling you receive of being debt free. I know it has been a long road for me and I must say I am enjoying the journey but am much looking forward to the benefits of reduced stress financially by seeing a big fat 0 on my debt column.
However, with my wedding less than 14 months away and the pursuit of home ownership hopefully not in the too distant future, staying out of debt will be tough. Having a mortgage is debt I am willing to take on but my fiance and I are trying extremely hard to pay for the wedding in cash rather than credit. Getting into debt for one night (even though its a great one!) is not something we are willing to do.
For the time being, I am going to focus on what I can control, and that is eliminating the last remnants of my debt.