The key is to pay down highest interest debt first., then the next highest interest debt when the first one is gone, and so on. So yes, put the excess to LOC buy down.Ok will do, thanks. I'll keep putting all of my extra money on the LOC. Should be able to get another $6-7k paid off on the LOC next month.
I have been following your progress and it is very inspiring, congratulations on the new family member and once your debt is gone and you are able to swing that to investments you will be in great shape come retirement. Congratulations on taking control of your future!Here is the summary of our monthly budget:
Take home pay: $8400/month (While Wife is on EI mat leave, and includes $1290/month rent. This is assuming I don't pick up any OT.)
Car insurance - $275/month (can't negotiate or find better deals, because it's public insurance in Manitoba)
Car Payments - $749/month (will be going down to $467/month in September once the car is paid off, and we will just have the SUV to pay off)
Fuel - $110/month
Auto Service - $20/month (this is what we budgeted for next month since there are no oil changes etc....this is just for car washed next month)
Internet - $80/month
Mobile Phone - $56/month
Utilities - $228/month
LOC/Student LOC/Wife's student loan payments - $605/month
Entertainment - $100/month
Alcohol/bars - $100/month
Coffee shops - $20/month
Groceries - $500/month
Restaurants - $150/month
Gifts - $50/month
Pharmacy - $50/month
Home Insurance - $91/month
Home Supplies - $100/month
Mortgages (for house and rental condo, including condo fees and property tax payments on the house) - $2628
Baby Supplies - $150/month
Hair - $20
Pet food/supplies - $80/month
Clothing - $70/month
Hobbies - $40/month
Total Expenses - $6272
Income - Expenses = $2128. This is with no OT. If I pick up OT, I can usually add about another $1000-$1500. With the baby at home now, I'm going to be limiting the amount of OT I pick up.
I have been putting $75/week into our savings account, which I didn't include in expenses. It just gets transferred from chequing to savings automatically every Friday. The remainder of the excess money typically goes straight on to the LOC. Once the LOC is paid off, I will start paying off my student LOC, and then followed by my Wife's student loan. Once the car, and those three loans I just mentioned are paid off, that will free up an extra $888/month, reducing our total monthly expenses down to $5384, allowing us to save money at a pretty good rate, especially once my Wife goes back to work.
There's a very high chance your wife's job will still be there next winter, yes?So we need to trim at least $500/month in expenses. We could sell both vehicles, have enough money to pay off both car loans, and go down to one cheaper vehicle. That would save $750/month in car payments, and about $160 in insurance, for a total of $910/month in reduced expenses.