I’m on a pretty strict budget as it is, since I know where all of my money goes when I get paid every 2 weeks. However, I think I want to pay off my car loan, before the end of this year. Sounds crazy right? Close to twenty grand (as of last October), paid off in 12 months? I’m not sure it’s possible for me to do in ~ < 1 year, but I think I’m darn well going to try. When I first got my car loan I was paying $190.00 biweekly, but as soon as Christmas ended, I upped that payment to a huge sum of $300.00 bi weekly. It’s completely manageable at that rate, but when I confided in a co-worker asking how much I’d have to put down each bi-weekly schedule to have it paid off by October 31, 2010 I was floored. I’m clearly not very good at math or I could have easily done it myself.
I’ll have to more than double my payments. We’re talking $625.00 biweekly if I want to pay it off in 9 months from now. I’m not sure that I’m willing to do that in this stage of the game, as I still have to save some extra money each month for an emergency fund, car fund, save money for mailing out my giveaways and even plane tickets for vacations. I really have to sit down and think if this is worth it.
I just really hate debt and I want to be in it, as little as possible and I’m seriously thinking of doing another No Buy Month like I did last March.
6 Comments
I am a new reader so I might have missed this but why is it so important to pay your car off in 12 months?
Hi Kelly!
Great question – a lot of people outside this website are asking me the same question.
It’s not entirely critical that I pay my car loan off in 12 months, I would just prefer to pay down as much of the principle payment as I can, in the shortest time. Primarily, because I want to save much more for my future: building more on my savings and emergency funds, as well as purchasing a home.
I wiiiiiiish I could have a few no buy month’s a year. Maybe I should do that with my online earnings.. its such a great idea, but very hard to do with kiddos!!! I remember you doing this before and I was amazed then too! When my kids are a bit older I’ll hopefully be able to do this too frequently! I might give the no buy month a try with my online earnings though! :D
Oh boy. Online savings is my favorite. Everything in my paypal account is for SPEND.SPEND.SPEND! haha :)
That’s a lot of money to be putting down biweekly if you double it.
Right now I’m working on paying off my debt (line of credit, osap, car) and it’s not going as well as I had hoped because of stupid little unexpected things that keep popping up.
Hope it all goes well for you. Dont stretch yourself thin.
You´re doing great, I wish I recevied this kind of lessons in my University, more interesting than the theory. In case you need an accountant please let me know…..it´s 15 years I do the same job, the only one so far. I hope managing money in Canada goes the same way than in Spain.