I love Discover Card’s website. No, this is not a paid post. *lol* I just logged in to see what my new balance is. I don’t use the card, but have some old debt on there that I’ve slowly been paying off. Anyway, on the site I just found a calculator that calculates how many more payments you will have based on the amount you pay each month. It said if I keep paying the amount I’m paying now each month (which generally varies by $25 or so each month), I will have the card paid off in 24 months. That’s only two years, people!! But what’s most excellent is that once Denis’ van is paid off (in about 14 months) if I move some of that van money over to my Discover card, I may get it paid off in 20 months, which would be awesome.
If I get that card paid off, it will mean I will have TWO credits cards with zero balances, and only one more to go. That’s VERY exciting to think about. Of course, that last one is HUGE – don’t even get me started on all the mistakes I made with THAT card – but I’ve been diligent about not using it since early December (this month I had three charges – each below $30, and two were random online purchases that could not be made via PayPal). If I continue to be diligent about not using it, then I will slowly see the balance get lower and lower. I just have to be patient.
Here’s where the planner in me goes crazy. I know at some point there will come a day when I can send them a) my Discover payments, b) 1/2 the van payments, c) my car payments (I should be done with that in about two years as well), AND d) what I’m already paying each month. With all those things going towards that bill, I should be able to get that thing paid off pretty quickly at that point. So 24 months from now is going to be an exciting time.
1) No van payment
2) No car payment
3) No Discover card payment
4) REALLY stepping up the payments to my last credit card.
At that rate, if we have no crazy emergencies in the next 24 months that hinders my debt-free goal, I should be completely consumer-debt-free by December 2011. THAT is awesome. You know what’s even more awesome? Those four things up there pretty much equal 50% of my current take-home salary. Presuming a 4% raise over the next two Augusts (which is when I get my raise), AND presuming I get completely out of debt by December 2011 means that we’ll then be able to start putting away more than 60% of my salary into savings for an emergency fund (6 months salary) and our kids’ college savings accounts (which right now get NO money because we don’t have any to put in).
That boggles my mind to think that may be achievable in less than four years. It gets me even more excited, and makes me wish I had made the decision to become debt-free a long time ago.
So presuming that you’ll be done with this existing debt by 2011, when do you expect to pay off the debt that you will be acquiring within the next three years?
That’s just it – the goal is to go cash-only. If I don’t have the cash, I’m not buying it. Plain and simple. I’ve been doing that since December and other than a few minor purchases (minor being less than $30 each) that HAD to go on a credit card (because paypal wasn’t available) I’ve done MUCH better than I ever have in the past.