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What is your debt repayment plan? - InMyOpinion - 04-03-2018

I was talking to a friend of mine the other day about her debt (she has about $25,000 in school debt) and I was asking her what her debt repayment plan was. To my surprise she didn't have a debt repayment plan and told me that she was going to pay off her debt when she had the extra money. What scared me about that statement is that there is never any "extra" money. You always have to allocate your money if you want it to work for you. Money is a tool and it should be used as such.

Do you have any debt? If so, what is your debt repayment plan?

I am happy to say that I do not have any debt and plan to stay debt free.


What is your debt repayment plan? - hbdamayon - 04-03-2018

If I have a debt for example that needs to pay in long term (ex. 3 mos). I will make sure that from the next salary that I will received the time that I get that money I will allocate certain amount that will be intended for my debt. I will plan the exact percentage of money that I need to save every pay day so that I can come up the exact amount during the scheduled payment of my debt.


What is your debt repayment plan? - Martinsx - 04-05-2018

I really wouldn't say that I don't have any debt left for me to pay but I can easily say it's not anything serious that would be a very hard payment for me to take care of at the moment.

I have been in a serious debt before and it's on monthly installment time frame that I used to pay it off. I think it took me 8 months before I was able to pay off the debt completely with the interest attached to it.


What is your debt repayment plan? - Kakashi2020 - 04-05-2018

I'm always in debt and it has always been like that for the past 15 years. I don't think anything is wrong with having debts. I've been trying to be debt free at first but everytime I'd pay of one debt another takes it place. Regarding repayment well, I pay what I can, when I can. But most of the time I just pay the minimum monthly payments. Even if I have the money to pay in full, I'll just pay the minimum.


What is your debt repayment plan? - InMyOpinion - 04-06-2018

[quote quote=2047]If I have a debt for example that needs to pay in long term (ex. 3 mos). I will make sure that from the next salary that I will received the time that I get that money I will allocate certain amount that will be intended for my debt. I will plan the exact percentage of money that I need to save every pay day so that I can come up the exact amount during the scheduled payment of my debt.[/quote] That's a really smart way to pay off debt, come up with a time frame and then how much you need to pay (keeping in mind the interest amount) in order to be debt free by your goal date. How I calculated my debt repayment plan was I took my outstanding balance and multiplied it by the interest rate. Then divide by 12. That would be my monthly interest. I'll take one of Gail's examples from "Money Rules" and say that I have a credit card that charges 18% and I have a balance of $1,465, my calculation would look like this:

1,465 X 18 ÷ 12 = $21.98 (after each payment this amount will go down but to simplify it for example sake I'll keep it at $21.98/month. Meaning I will pay $21.98 in interest every month.

Then I decide how long I want to take to pay off my debt, I then take the outstanding balance and divide by the number of months in which I want to be out of debt. So if I wanted to pay off my balance in six month my calculations would look like this:

$1,465 ÷ 6 = 244.17

I would then add up my two totals 21.98 (interest) + 244.17 (principal) = $266.15 for my total monthly payment.

Does your calculations look something like that?

[quote quote=2143]I really wouldn’t say that I don’t have any debt left for me to pay but I can easily say it’s not anything serious that would be a very hard payment for me to take care of at the moment.

I have been in a serious debt before and it’s on monthly installment time frame that I used to pay it off. I think it took me 8 months before I was able to pay off the debt completely with the interest attached to it.[/quote]
Congratulations on paying off your serious debt! It can take a while to pay back debt but it feels so amazing once you're finally debt free. Congrats again!

[quote quote=2146]I’m always in debt and it has always been like that for the past 15 years. I don’t think anything is wrong with having debts. I’ve been trying to be debt free at first but everytime I’d pay of one debt another takes it place. Regarding repayment well, I pay what I can, when I can. But most of the time I just pay the minimum monthly payments. Even if I have the money to pay in full, I’ll just pay the minimum.[/quote]

I feel like you may need to learn a little more about money in order to help you get out of debt and stay out of debt. Some debt isn't bad, that is true. But always having debt isn't good either especially if you're only paying the minimum payment. If you only pay the minimum payment you will end up paying a ridiculous amount in interest and the amount that you paid for something could double or even triple. If you're going to only make the minimum payment include the amount you will also have to pay for interest. If you're not sure how to do the calculation I've written it above.

Do you have any money saved in case there was ever an emergency?


RE: What is your debt repayment plan? - Martin - 05-02-2018

My only debt is/will be my student loan currently. I just plan to pay that off as required, the percentage of income is automatically taken here in the UK before I get my paycheck. I don't intend on paying it off any faster than the normal rate either.


RE: What is your debt repayment plan? - ghost - 05-07-2018

Clear the stuff with the highest interest first, that way I am paying less overall. I know others like the pay the smallest debts first, regardless of interest, so that they clear debts and feel like they are getting somewhere - but I'd rather pay off the ones with most interest.