Can We Pay Off $70,000 in 36 Months?

I was playing around with my trusty calculator last night to see where our debt stood. As of this month we owe a bit over $80,000 ($80,400). While this number seems impossibly large can we please remember that just two years ago our debt was closer to $109,000 (highest non-mortgage debt close to 139k). Since starting this blog, we’ve paid off $29,000 in principle debt, most of which was paid down in the last 15 months since my return to work full-time after my year long maternity leave.

While $29,000 is a decent accomplishment for 24 months by anyone’s standards, I’d like to attempt to kill $70,000 (of the remaining $80,000) in 36 months.

Why not worry about the other $10,000?…

The last debt that we’ll be paying off is my nationally issued student loan. A loan I currently make interest-only payments on and a loan which I can claim the interest paid as a tax deduction. Once the other $70,000 is paid off it will only take about five more months to pay this 10k loan off and again, all interest paid is a tax deduction where all other debt is not.

My Plan:

  • Pay off 0% interest loan first: $13,064 to be paid off in 12 months= $1088/month while making minimum required payments on all other debts. Total monthly debt total required: $2,064.
  • Come October 2015, 0% loan will be paid off and in following 24 months pay off remaining debt which includes student lines of credit and vehicle. I choose to pay the balance of the vehicle next for a few reasons. One, I like the idea of the vehicle being paid off in case something happens to it. Two, our auto insurance will likely decrease with paid off vehicle and three, it’s the largest single debt payment per month with a large portion going towards principle allowing us to pay it down quickly by snowballing out previous debt payments.
  • From Nov 2015- June 2016 (kiddo’s 4th bday!) pay off vehicle balance of what will be $13,200 (payment required $1,650/month)
  • From July 2016- Dec 2016 pay off two of three student lines of credit. Balance between the two will be about $9,800 (payment required $1735/month)
  • From December 2016-November 2017 (final payment the 1st of the month) pay off remaining $23,000 student line of credit (payment required $2,010/month).
  • December 2017 debt remaining (national student loan): 10,376 which will only take 5-6 months to pay off.

I have to be honest this is my ”life happens” plan. I’m fairly confident we should be able to do this. The evening out of some months being great and others not so great should make this plan possible. Though I am hopeful we can be done earlier than projected, I have to remember that it takes $2,000 extra just to knock off one month of this plan so realistically this is the plan that we’ll execute within a month or two.

Finally, if you are looking for a good resource on paying off your debts, consider getting a copy of Dave Ramseys The Total Money Makeover. I don’t use Dave’s snowball or avalanche payoff strategies, but millions of people have found his books useful.

Enjoy Plunged in Debt?

Pid

Subscribe to get our latest content by email.

Powered by ConvertKit

Comments

  1. Sounds like you have a great plan. Best of luck executing!

    This did feel a little bit like cheating on my goal of not run the numbers. You ran all the numbers!
    Kate@GoodnightDebt recently posted..I’m ignoring my debt.My Profile

  2. I’m impressed. I just found your blog and I am now motivated to give our budget a re-look to see if we can increase the savings and decrease the spending ( again) 😉

  3. That is super ambitious, but it sounds like you’ve done all your homework and are ready to do this! When we had a lot of consumer debt (in addition to our student loans), I did the same thing you did, and it really helped me see the results to keep me motivated. (Now we’re just working on student loan debt and saving, and it’s not as quick, which can be discouraging.) This looks amazing – good luck!
    Ms. Mintly recently posted..What Would You Do with $8,000?My Profile

  4. That’s a good plan, but why don’t you pay off your vehicle first (assuming you’re paying interest) and then pay off the 0% loan. You’ll save money by doing it this way. I understand that you want to do the snowball method, but the balances are so closed together that it won’t make a difference and you’ll potentially pay less in interest in the long run.

    Either way, good plan and good luck!
    Aldo @ Million Dollar Ninja recently posted..How To Track Your SpendingMy Profile

  5. I love seeing your entire plan all mapped out – thank you for sharing it with us! And I think it’s really smart that it’s a “life happens” plan. It’s too easy to get gung-ho and want to go all in, but the wiggle room is important and makes it that much more achievable. I can’t wait to see where you’re at in Dec 2017! 😀
    Cait Flanders recently posted..TGIF: Denver Bound + 7 Things About MeMy Profile

  6. I’m just curious as to why you’re paying off the 0% interest first? I’m sure you’ve thought it through; but I’m going to assume there’s interest accruing on your vehicle and SLOC… wouldn’t it save you money in the long run if you paid down those with interest first rather than your loan which is charging you 0% interest?

    Your financial journey has been inspirational… looking forward to reading about your progress and Dec2017 payoff date!
    Maria recently posted..Funding ChristmasMy Profile

  7. Very ambitious, but I know you’re extremely focused and want to get out of this debt, I know you’ll do it! 🙂
    Morgaine recently posted..Pregnancy ShoppingMy Profile

  8. that is ambitious and admirable! I’m with other commenters though and wondering why you would pay the 0% off first, before the vehicle?
    Newlyweds on a Budget recently posted..Why We Got Started with a Certified Financial PlannerMy Profile

    • Catherine says:

      Sorry I should have clarified that. There is a 24mo period after our 0% loan is paid off that the flaw remains on our credit report thus the faster we pay it off, faster it goes away.

  9. Wow, that is such an ambitious goal, but you’ve clearly thought it through very carefully and I’m sure you’ll succeed. I can’t wait to see you reach your target.
    Myles Money recently posted..The Financial Revolution Will Be Televised… on RealVision TVMy Profile

  10. Nice plan of attack. I like how you chunk-ed it out. Good Luck with this debt repayment… it looks doable how its listed.
    Ciel Belle recently posted..Week 19 : Long weekendsMy Profile

  11. Best of luck. Once you start snowballing, it gets better and better. I’m sure you can do it. I bet even quicker than planned.
    Kim recently posted..Where Is The Best Place To Retire?My Profile

  12. I think the hardest part about debt repayment is creating a realistic plan. It’s one thing to spout numbers, but another to spout realistic numbers. I think that yours look achievable and it’s a great “reach” goal that you should challenge yourself to achieve. You have come far already, and this number will probably be good motivation to hit it faster.
    Shannon @ Financially Blonde recently posted..Commitment is KeyMy Profile

  13. I really love your plan and how determined you are to kick debt’s behind 🙂

    By setting up such a great plan you’ll clearly work very hard to achieve it and not let years pass by trying to take it ‘easy’. Keep us posted on your progress, would really love seeing your plan come to life.
    dojo @ PFToday recently posted..Earn Money Making PreservesMy Profile

  14. This is ambitious, but I think you have a nice plan. That’s half the battle! We’re rooting for you! You can do it!
    Melanie @ Dear Debt recently posted..How My Blog Changed My Life: Stefanie from the Broke and Beautiful LifeMy Profile

  15. Catherine, sounds like you’ve thought this out well!!! You can do it, my friend. Keep up the great work!
    Laurie @thefrugalfarmer recently posted..Garden Carrots 101My Profile

  16. Wishing you the best of luck with executing your plan! It’s really well thought out.
    Jessie’s Money recently posted..2015 BudgetingMy Profile

  17. What a fantastic goal! Good luck! Looking forward to the updates!
    Janine recently posted..Comment on Student Hack: Free 2 Day Shipping from Amazon by Sara WelshMy Profile

  18. Sounds like a good plan! Can’t wait to see it put into action 🙂

Trackbacks

  1. […] have asked what I plan on doing with the raise, 75% will be going directly towards debt, helping me meet my goals and the other 25% being added to kiddos monthly RESP (education savings), no lifestyle inflation […]

  2. […] mentioned on my blog last week that, if all goes according to plan we’ll kick $70,000 worth of non-mortgage debt within the next 36 months. This will leave us with just $10,000 of debt remaining, which […]

  3. […] have a decent life right now, debt and all. I mentioned in my post outlining our debt payoff plan that my plan was a ”life happens” plan. Meaning, I fully expect life events to pop up […]

  4. […] was a good month for us for debt repayment too. As per our plan, we need to be putting $2,064 towards debt each month and this month we beat it…by $1 We […]

  5. […] husband and I make decent money but rarely do I actually get to enjoy it. Since most of our money goes towards debt and other household bills like heat and mortgage, the money we do have ”left over” is […]

  6. […] additional income for. Though we could have used this money for debt, we were still on track for our monthly target which keeps me happy. While I’d love to have put that money onto our debt as well it was his […]

  7. […] remind you, we need to be putting $2,068 towards debt every month to meet our target. This month we came in a little short at $1,574. I’m hoping to make this difference up in the […]

  8. […] It sounds cliché but it took getting pregnant and having a child for me to get motivated. No one needed to hound me about our finances, for me there was now ZERO choice. We needed to get our heads out of the sand and figure everything out. We needed to add the debt up and come up with a plan. I’m happy to report that we’re still on plan to be almost debt free in less than three years. […]

  9. […] as it is so going a bit over isn’t going to break us.To remind, we want to put at least $2,068 towards debt, every month (to be debt free in 36 33 months), and despite monthly overages managed an even $2,100 […]

  10. […] for disaster. Educate yourself. Make a learning opportunity from past mistakes and come up with a kick-ass plan like we […]

  11. […] including all additional funds, are a non-negotiable fixed expense. The loan we’re working at paying off right now has a minimum payment of $445 per month but in our budget the minimum payment is set at $1,100, […]

  12. […] of my maternity leave so most of the hard work has been done in the last 16 months. When I wrote this post outlining our goal of paying off $70,000 worth of debt in next three years, I projected we’d […]

  13. […] and I have monthly goals to meet for our debt-free date but we haven’t totally sucked the fun out of our lives. We […]

  14. […] isn’t a pregnancy announcement (Hello- debt goals!) but rather me stating I’d rather have a life rich in other non-monetary ways.  Though I […]

  15. […] and avoiding my income tax, I decided to write this instead. Back in October I decided I wanted to payoff $70,000 in 36 months (of remaining $81,500), something we’re still working towards. I have ambitions of knocking […]

  16. […] $2,074 towards our debt goal. We’re still on plan for paying off our next loan by October, per our plan. I was really hoping to have it done earlier- August or September- but realistically it’s not […]

  17. […] don’t know if it’s because I wrote it down, shared it with the world and made it a concrete goal, but paying off this loan by November, ideally my birthday (the 6th), is consuming me. I want this […]

  18. […] October I wrote a post titled Can We Pay Off $70,000 in 36 months. I received so much support and encouragement from writing that post and it continues to be a […]

  19. […] time last year I wrote a post (one of my most popular still, today), titled Can We Pay Off $70,000 in 36 Months?. I mention in the post that in the previous 24 months (from when the post was written, in October […]

  20. […] we were keeping on plan of paying off $70,000 worth of debt in 36 months (21 remaining now), we’d continue doing exactly what we’re doing with no real change, […]

  21. […] wasn’t that long ago that I wrote a post outlining my (our) goal to pay off $70,000 in just 36 months. We’re actually in a position to keep on going with this plan too but I’ve now decided […]

Speak Your Mind

*

CommentLuv badge

ps_menu_class_0

Can We Pay Off $70,000 in 36 Months?

I was playing around with my trusty calculator last night to see where our debt stood. As of this month we owe a bit over $80,000 ($80,400). While this number seems impossibly large can we please remember that just two years ago our debt was closer to $109,000 (highest non-mortgage debt close to 139k). Since starting this blog, we’ve paid off $29,000 in principle debt, most of which was paid down in the last 15 months since my return to work full-time after my year long maternity leave.

While $29,000 is a decent accomplishment for 24 months by anyone’s standards, I’d like to attempt to kill $70,000 (of the remaining $80,000) in 36 months.

Why not worry about the other $10,000?…

The last debt that we’ll be paying off is my nationally issued student loan. A loan I currently make interest-only payments on and a loan which I can claim the interest paid as a tax deduction. Once the other $70,000 is paid off it will only take about five more months to pay this 10k loan off and again, all interest paid is a tax deduction where all other debt is not.

My Plan:

  • Pay off 0% interest loan first: $13,064 to be paid off in 12 months= $1088/month while making minimum required payments on all other debts. Total monthly debt total required: $2,064.
  • Come October 2015, 0% loan will be paid off and in following 24 months pay off remaining debt which includes student lines of credit and vehicle. I choose to pay the balance of the vehicle next for a few reasons. One, I like the idea of the vehicle being paid off in case something happens to it. Two, our auto insurance will likely decrease with paid off vehicle and three, it’s the largest single debt payment per month with a large portion going towards principle allowing us to pay it down quickly by snowballing out previous debt payments.
  • From Nov 2015- June 2016 (kiddo’s 4th bday!) pay off vehicle balance of what will be $13,200 (payment required $1,650/month)
  • From July 2016- Dec 2016 pay off two of three student lines of credit. Balance between the two will be about $9,800 (payment required $1735/month)
  • From December 2016-November 2017 (final payment the 1st of the month) pay off remaining $23,000 student line of credit (payment required $2,010/month).
  • December 2017 debt remaining (national student loan): 10,376 which will only take 5-6 months to pay off.

I have to be honest this is my ”life happens” plan. I’m fairly confident we should be able to do this. The evening out of some months being great and others not so great should make this plan possible. Though I am hopeful we can be done earlier than projected, I have to remember that it takes $2,000 extra just to knock off one month of this plan so realistically this is the plan that we’ll execute within a month or two.

Finally, if you are looking for a good resource on paying off your debts, consider getting a copy of Dave Ramseys The Total Money Makeover. I don’t use Dave’s snowball or avalanche payoff strategies, but millions of people have found his books useful.

Enjoy Plunged in Debt?

Pid

Subscribe to get our latest content by email.

Powered by ConvertKit

  1. Sounds like you have a great plan. Best of luck executing!

    This did feel a little bit like cheating on my goal of not run the numbers. You ran all the numbers!

    1. Catherine says:

      Thanks Kate!

  2. Jennb says:

    I’m impressed. I just found your blog and I am now motivated to give our budget a re-look to see if we can increase the savings and decrease the spending ( again) 😉

    1. Catherine says:

      Thanks for stopping by! Good luck to you 🙂

  3. Ms. Mintly says:

    That is super ambitious, but it sounds like you’ve done all your homework and are ready to do this! When we had a lot of consumer debt (in addition to our student loans), I did the same thing you did, and it really helped me see the results to keep me motivated. (Now we’re just working on student loan debt and saving, and it’s not as quick, which can be discouraging.) This looks amazing – good luck!

  4. That’s a good plan, but why don’t you pay off your vehicle first (assuming you’re paying interest) and then pay off the 0% loan. You’ll save money by doing it this way. I understand that you want to do the snowball method, but the balances are so closed together that it won’t make a difference and you’ll potentially pay less in interest in the long run.

    Either way, good plan and good luck!

    1. Catherine says:

      again, sorry I answered this question for someone else above.

  5. I love seeing your entire plan all mapped out – thank you for sharing it with us! And I think it’s really smart that it’s a “life happens” plan. It’s too easy to get gung-ho and want to go all in, but the wiggle room is important and makes it that much more achievable. I can’t wait to see where you’re at in Dec 2017! 😀

    1. Catherine says:

      Thanks so much Cait, means a lot from you.

  6. Maria says:

    I’m just curious as to why you’re paying off the 0% interest first? I’m sure you’ve thought it through; but I’m going to assume there’s interest accruing on your vehicle and SLOC… wouldn’t it save you money in the long run if you paid down those with interest first rather than your loan which is charging you 0% interest?

    Your financial journey has been inspirational… looking forward to reading about your progress and Dec2017 payoff date!

    1. Catherine says:

      Sorry I should have clarified, I answered the question in another response.

  7. Morgaine says:

    Very ambitious, but I know you’re extremely focused and want to get out of this debt, I know you’ll do it! 🙂

    1. Catherine says:

      Thanks 🙂

  8. that is ambitious and admirable! I’m with other commenters though and wondering why you would pay the 0% off first, before the vehicle?

    1. Catherine says:

      Sorry I should have clarified that. There is a 24mo period after our 0% loan is paid off that the flaw remains on our credit report thus the faster we pay it off, faster it goes away.

  9. Myles Money says:

    Wow, that is such an ambitious goal, but you’ve clearly thought it through very carefully and I’m sure you’ll succeed. I can’t wait to see you reach your target.

  10. Ciel Belle says:

    Nice plan of attack. I like how you chunk-ed it out. Good Luck with this debt repayment… it looks doable how its listed.

    1. Catherine says:

      Thanks 😉

  11. Kim says:

    Best of luck. Once you start snowballing, it gets better and better. I’m sure you can do it. I bet even quicker than planned.

  12. I think the hardest part about debt repayment is creating a realistic plan. It’s one thing to spout numbers, but another to spout realistic numbers. I think that yours look achievable and it’s a great “reach” goal that you should challenge yourself to achieve. You have come far already, and this number will probably be good motivation to hit it faster.

    1. Catherine says:

      I agree completely, thanks Shannon!

  13. I really love your plan and how determined you are to kick debt’s behind 🙂

    By setting up such a great plan you’ll clearly work very hard to achieve it and not let years pass by trying to take it ‘easy’. Keep us posted on your progress, would really love seeing your plan come to life.

    1. Catherine says:

      Thanks so much, I look forward to sharing it!

  14. This is ambitious, but I think you have a nice plan. That’s half the battle! We’re rooting for you! You can do it!

    1. Catherine says:

      thanks melanie 🙂

  15. Catherine, sounds like you’ve thought this out well!!! You can do it, my friend. Keep up the great work!

  16. Wishing you the best of luck with executing your plan! It’s really well thought out.

  17. Janine says:

    What a fantastic goal! Good luck! Looking forward to the updates!

  18. Sounds like a good plan! Can’t wait to see it put into action 🙂

Speak Your Mind

*