What Debt Will You Conquer in 2012?

by Pay Off Debt Together 25 comments

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There's been a slight change for one of our 2012 financial goals. I know it's only the first month, but I feel like I should adjust it to reflect a new opportunity.

As regular readers know, we have one student loan between us and its our only non-mortgage debt left. Right now we're paying around $150/month.

Per our 2012 goals, I'd like to pay down the student loan principal by at least $2,000 this year (in addition to our regular monthly payments).

We’re focusing on setting aside a percentage of any windfalls (tax refunds and work bonuses) and extra income through out the year towards paying down this debt.

Finding Income to Pay Down Debt

To accomplish this goal means that I need to increase my take home pay. For this year I'll be using revenue generated from My Financial Reviews to reach this goal.

I've mention building different income streams and this is in the same vein, but the idea here is that money is sent out almost as soon as it comes in.

No temptation to spend it or save it for another goal.

It's a new blog so it will be a challenge, but I also think it'll be motivating to have a focus with the site and any income generated.

Keeping Tabs on My Progress

I'll have a monthly update throughout this year so you can see if I make my goal or not.

I'm hoping the public accountability will light a fire and get me to my goal sooner than planned.

My expectation is that the first few months will be small changes, but I hope that by April to be making extra payments on principal that match our scheduled payments.

Thoughts on Conquering Your Debt

I'd love to hear from you about your plans. What debt do you want to conquer this year?

About Elle Martinez

Elle Martinez helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second..

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25 comments add your comment

  1. 2012 is our Year of Debt. Since getting married in September we have reduced our debt from close to 25,000 to (as of today) 17,401. We are on a tight plan to be debt free by December of this year.
    Not the most fun way to spend your first year married, but I LOVE watching that number go down on my spreadsheet every week.

    • What a wonderful goal to share as a couple. Best wishes on getting rid of the debt! What are some of your best tips on getting it done?

      • The best thing we have done is Craiglist and Ebay! I just went through our house and found things we didn’t really use anymore- lamps, clothes, old cell phones, leftover wedding decor, etc….and listed it on either site. It feels great to get rid of stuff we don’t need and we have made about $1,000 in “free” money in the last few months!

      • The best thing we have done is Craiglist and Ebay! I just went through our house and found things we didn’t really use anymore- lamps, clothes, old cell phones, leftover wedding decor, etc….and listed it on either site. It feels great to get rid of stuff we don’t need and we have made about $1,000 in “free” money in the last few months!

  3. I’ve got about $3,600 in student loans that I’m planning on paying off this year. It’ll be tough as I will be eligible to contribute to our company’s 401(k), but I plan on doing it nonetheless.

  4. I think that is such a cool idea! It is like you are paying yourself dividends from the money you are earning. So instead of just earning $1K for example you are putting that to work and saving the extra interest – and eventually the cash flow and more earnings…its like a circle that builds up your net worth

    • Thanks for the support Evan! I’m hoping to use this as incentive to build this new site. My hope is that I can pay off the student loan by 2014 between the extra income stream, windfalls( tax refund & bonuses) and our regular payments.

  5. I like the earmarking idea with the new money generated from the additional blog. By setting this aside immediately, you’re sure to win!

  6. I am planning on conquering my truck debt this year. If I do, it will be over 3 years early! There’s currently 8,800 left on the note!

  7. Both of our car loans will be paid off within the next few months. Once his is paid, we are doubling the payments on mine, so both will be paid off early!

  8. We intend to pay off some credit card debt we have, and also take care of a majority of our car loan (and have it done by March 2013)

  10. 6 more months and student loans will be paid off, leaving us just the house. Great work – time to hustle that blog money!

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