Thursday, June 4, 2009

My Loan Reduction Plan

To have it paid off my August 31 2009

1) Right now I pay $100 a paycheque to my loan. I always put $150 aside for it and now I am using that extra $50 towards the loan. SO I can pay $150 a paycheque.
Paycheques are bi-weekly (June 17, July 2, July 16, July 30). Plan is by end of July to have paid $750 off of my loan (including tomorrow's payment). This will bring my loan down to approximately $661.43 (give or take interest).
2) A and I will be moving into my dad's basement for a couple months to save to buy a house! My dad is going to help us out this way and with some of the down payment. So September I don't have to pay rent. Which means essentially in August I have $1200 extra (what I would have had to save to pay for September's rent). So if I divide that remaining part of my loan in half and with each paycheque pay $330.71 (maybe a little more depending again on interest) my loan will be paid in full by August 31 2009.

I am really excited for this! I took out my loan for my dental implant and it will be nice to see it cleared finally. And it will be cleared 4 months earlier then it would have if I follow the payment schedule.


Over the Cubicle Wall said...

Always nice to get rid of a loan payment. It will be like getting a $150 raise.

Canadian Saver said...

Sounds like a great plan!!

You guys are lucky that your Dad is helping you out like he is :-)

Good luck!!