Skip to main content
No. of Recommendations: 12

Loan Dec. 2016 Nov. 2016
===================================================
A/C Loan (7.36%) 7,321 7,470
Student Loan 1 (6.41%) $17,917 $18,077
Car Loan (4.45%) 7,800 7,981
Student Loan 2 (3.86%) 5,033 5,087
---------------------------------------------------
$38,071 $38,560
======= =======



That's a one-month reduction of $489 in consumer debt, $45 less than the previous month's reduction. I presume the short month would explain the slowdown.

Plus, I added $330 into my Loan Payoff Savings Fund. It would have been more, but I had more than $400 worth of unexpected expenses this month.

Furthermore, I've reduced my mortgage balance by $503 this month.

Still plugging away.
Print the post Back To Top
No. of Recommendations: 12
That's a one-month reduction of $489 in consumer debt

It occurred to me that I've been making these Update posts for well over a year, which means that I can now track my progress on an annual basis.

http://boards.fool.com/update-december-2015-32012987.aspx

So then, that's a one-year reduction of $13,557 in consumer debt.
Print the post Back To Top
No. of Recommendations: 0
Awesome! Isn't it cool to watch the numbers go down over time like that?

ThyPeace, likes trends.
Print the post Back To Top
No. of Recommendations: 5
ThyPeace wrote, Awesome! Isn't it cool to watch the numbers go down over time like that?

What's even more awesome is maintaining that behavior even after paying everything off and seeing your net worth start to really take off.

- Joel
Print the post Back To Top
No. of Recommendations: 0
What is the loan payoff fund?
Print the post Back To Top
No. of Recommendations: 1
What is the loan payoff fund?

Not the OP, but when the OP first started posting updates, a combination payoff/emergency fund was discussed in this thread: http://boards.fool.com/update-october-2015-31931993.aspx?sor... At that time, it was targeted toward a particular car loan, since the OP had 3 car loans at that time. Now, having gotten rid of 2 of the car loans, as well as the Discover card, but having added an A/C loan, I'm not sure what it's targeted at.

AJ
Print the post Back To Top
No. of Recommendations: 11
What is the loan payoff fund?

AJ is correct. It's extra monies set aside in a savings account. When it's equal to the value of one of my loans, I'll use it to pay the loan off, and snowball that loan's normal payment into the Loan Payoff fund (plus extra monies) to tackle the next loan on the list.

I used to put extra monies straight to the loan as soon as possible in order to minimize total interest. But then inevitably a costly emergency would come along that would overwhelm my emergency fund, so I'd have to borrow money to pay the bill. Now I let my Loan Payoff fund double as a second emergency fund until it's balance is sufficient to pay something off in full.

Right now it's large enough to pay off Student Loan 2, but that's my lowest rate loan, and it would only free up approx $50/month. If luck is with me, I'll have enough in the Loan Payoff fund at the end of this month to pay off the A/C Loan in full. The rate on that loan is twice as high and would free up $200/month. That feels like a better bang for the buck.
Print the post Back To Top
No. of Recommendations: 1
Good strategy. Keep up the good work.
Print the post Back To Top