Today’s Art of Manliness assignment was to start a debt reduction plan.
My current debt:
$11,200.00 college loans at 5% interest (payments start June 1, 2013)
$13,078.80 car finance at 3.9% interest
My current income:
So here’s my brilliant plan.
1. Get a job. This will enable me to pay things. I have a job interview tomorrow morning, so pray for me please.
2. Meanwhile, try to reduce spending on things (see budget post).
3. Live under my parent’s roof for free housing, utilities, food, etc. Also, while my parents are still willing and able to pay for my cell phone coverage, car insurance, etc., take advantage of them(?) and pay off things as much as possible.
4. Depending on my income situation, try to focus on car payments initially. College loans interest doesn’t accrue until March 1, 2013, and when I go back to school for more education (which I plan to in a couple years), the college loan payments pause until I finish, whereas car payments wouldn’t stop.
5. Try to keep some emergency funds (amount varying on my financial situation) to prevent myself from having to go further into debt in the case some emergency arises.
I’m still debating whether I need to start saving for retirement or whatever now or later. Any suggestions?