February Debt Goal Update: Pay Off Auto Loan

Posted on February 29, 2012 Written by 7 Comments
Auto loan update

In November I started a new goal to put any and all extra funds towards paying off my car loan. To make sure I stay dedicated and on track, I started a Pay Down Debt Faster series.

It outlines six steps I’m implementing to immensely cut my debt repayment down. As the year goes on and time progresses, I should be able to pay off this loan by summer 2012!

 

Previous Balance – $6,197.49

I get extra motivation every month from using the ReadyForZero debt-tracking software. Plus, February is part of the annual America Saves Week, which gets me even more inspired to pay off debt and save!

The New ReadyForZero Savings Platform

ReadyForZero has just released a new feature called the Savings Platform. They work anonymously with creditors to help find their software users better loans. According to their site, here’s a list of a few ways your “triggers” can help you save:

  • months on ReadyForZero
  • ReadyForZero speed
  • credit score
  • actual payment history
  • debt-to-income
  • debt-load
  • number of outstanding accounts

I reviewed the consolidation loan that was offered, and as you can see, for my personal debt situation it’s not a good fit. Here’s a fantastic article to read if you’re wondering, is debt consolidation a good idea?

RFZ savings tool

While it would decrease my monthly payment, I would be paying almost 3x the interest rate and $915 more interest. My goal is INCREASE my payments not decrease them!

 

Progress and Payments

This month I pulled in some extra income, sold some stuff on eBay and discovered some “found money” to help knock down my balance even further. Here’s the breakdown.

Extra income total – $509.51

Total extra payments – $1,139.51

Here’s an updated screenshot of my progress using the ReadyForZero debt payoff software.

ReadyForZero loan progress

 

New Loan Balance – $5,083.15

The daily interest rate last month was $0.59 a day and now it’s down to $0.48 a day.

It’s awesome to watch my chart balance keep going down. And if you notice the update, I will be debt free in 8 months instead of 12.

Summary debt loan progress

If you’re interested in finding out more about the ReadyForZero software click here to see how it all works.

Ahhhh….I’m getting close!

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Filed Under: Goals & Updates Tagged: , ,
  • http://www.makingsenseofcents.com/ Michelle

    So close!

    • http://facebook.com/carefulcents Carrie Smith

      I know right! Ahhhh… :D

  • Zack Jones

    Weren’t you going to get a 0% credit card and transfer the balance to it? I may have you confused with another blogger. I, too, have made great progress this month. In addition to our normal payment of $1150 we added an extra $1985 by selling stuff on eBay, Half.com and Craigslist. We just got a $100 rebate check in the mail today and that’s going towards the debt as well. I also got my first milestone email from ReadyForZero today. We’re knocking that debt out and are already a month ahead of schedule in being debt free (except mortgage)! Good luck on your continued success paying off the car.

    • http://carefulcents.com Carrie Smith

      I do have the 0% balance transfer option, but only for about half the loan amount. Plus I’m so close right now, I don’t think it would make much of a difference. I am however, going to take the advice about paying twice a month instead of just one monthly payment. That will definitely help pay down the loan quicker and save on interest.

      Yay! It sounds like you’re rocking your debt repayment too! Congrats on your milestone with ReadyForZero. It’s always motivating to get those emails :) Good luck to you as well!

      • Zack Jones

        I’ve ofen wondered about paying twice a month instead of once and month but can’t seem to find any online calculators that will show me the difference. How are you able to determine that paying twice a month will pay it down quicker? I’ve been thinking about doing that with my mortgage but wonder if they’ll apply the payments correctly.

        We are rocking it. We got a $100 rebate check in the mail yesterday and have already scheduled an extra $100 payment on the credit card. I can’t wait until I can scream “I’M DEBT FREE!” (except for house).

  • http://www.twitter.com/bwfeldman Benjamin Feldman

    Great job, Carrie! I can’t wait to see your balance keep getting lower!