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Debt Diva: Anticipating Debt Paydown Detours

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My recent debt reduction became even more important in the last couple of days. I learned that my job may be outsourced within the next year or two. I am a realist-I work in Human Resources and I see this happen. I literally shook my head and opened up my payoff schedule and was thankful I had gotten busy reducing debt-even happier that I was doing it faster than planned. I knew I would be okay and not lose my house or car, etc. I know I will work somewhere. Freelance HR, maybe start selling my artwork again, doing art blogs again, teaching artwork, doing employment investigations-I have lots of possibilities.

So I need to kick it in high gear and increase my savings and pay off the mortgage and auto loans. With the elimination of the credit card debt, I will be doubling my monthly mortgage payment. The more I can eliminate before a layoff would occur, the better my position post-retirement. Since I really got focused in the past year, I could survive early retirement.

I am still excited about paying off all of my debt, except for my mortgage and my automobile loans. Between the two loans, I owe almost $37,000. Because my mortgage interest rate is just a bit higher than my automobile interest rate, my plan is to eliminate my mortgage first and then the automobile loan about a month later. This is scheduled to happen in March 2014. Paying off my credit card debt a few months earlier than planned saved me an additional $275 in interest. In order to make that savings “real,” I deposited that amount in my savings account.

I will be spending the next several weeks looking at several options should my job be eliminated. I need to plan not only for just normal living expenses, but routine replacement of windows, siding, roof, furnace, and other appliances. I had a 10-year plan for saving cash for those types of purchases, and I will need to look at other ways to finance if I can’t save enough cash in savings before the out-sourcing of my position.

Detours: When life throws them, you have to find another route.

Image: fabbio, via Flickr

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  • http://www.whismanfinancial.com Evelio Areas

    Can you truly tell me if you were to start a Debt Settlement company, what would you different to stay compliant and yet profitable?
    The problem with staying compliant is that you cannot collect any fees upfront, now how can you stay afloat?

    I am really looking forward to this answer, please provide as much details and examples as possible!!
    THX,
    EA

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