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Debt schedule
Sam and Louise Locke
Debt
Balance due
Interest rate
Current monthly payment
"Payment Push" period" **
Macy's
$300
20%
$30
Feb. 2002 - Mar. 2002
Funding the "Payment Push:" Starting 02/02, combine the $30 current payment with $150 from belt tightening to make total payments of $180. Macy's will be gone in two months.
The $180 that is freed up when this debt is paid off will be used to pay down Firestone.
Firestone
$400
20%
$16
April 2002 - May 2002
Funding the "Payment Push:" Starting 04/02, combine the $16 current payment with the $180 freed up from paying off Macy's to make total monthly payments of $196. Firestone will be history in May 2002.
The $196 that is freed up will be used to pay down the furniture store.
Furniture store
$1,300
20%
$50
June 2002 - Oct. 2002
Funding the "Payment Push:" Starting 06/2002, combine the $50 current payment with the $196 freed up from paying off Firestone, and make $246 payments until the furniture store is paid off 10/2002.
The $246 that is freed up will be used to pay down People's Bank.
People's Bank
$4,100
18%
$140
Nov. 2002 - Mar. 2003
Funding the "Payment Push:" Starting 11/2002, combine the $140 current payment with the $246 freed up from paying off the furniture store, and make $386 payments until 09/2002. Starting 09/2002, add the $250 that is freed up from paying off the 0 percent interest medical loans, and make $636 payments until this debt is paid off 03/2003.
The $636 that is freed up will be used to pay down the credit union loan.
Credit union
$1,800
13%
$60
April 2003 - May 2003
Funding the "Payment Push:" Starting 04/2003, combine the $60 current payment with part of the $636 freed up from paying off People's Bank, and the credit union will be paid off 5/2003.
The $696 that is freed up will be used to pay down the 403(b) loan.
403(b) -- prior employer
$2,800
7%
$30
June 2003 - Sept. 2003
Funding the "Payment Push:" Starting 06/2003, combine the $30 current payment with the $696 freed up from paying off the credit union loan, and make $726 payments until the 403(b) loan is paid off in 09/2003.
The $726 that is freed up will be used to pay down student loan No. 1.
Student Loan No. 1
$12,000
7%
$124
Oct. 2003 - Nov. 2004
Funding the "Payment Push:" Starting 10/2003, combine the $124 current payment with the $726 freed up from paying off the 403(b) loan, and make $850 payments until student loan No. 1 is paid off in 11/2004.
The $850 that is freed up will be used to pay down student loan No. 2.
Student Loan No. 2
$20,000
6%
$200
Dec. 2004 - April 2006
Funding the "Payment Push:" Starting 12/2004, combine the $200 current payment with the $850 freed up from paying off student loan No. 1, and make $1,050 payments until student loan No. 2 is paid off 04/2006.
Hooray! The Lockes are debt free in 2006!
Medical
$2,000
0%
$250
N/A
This debt will be paid off in 8 months (09/2002) with current monthly payment.
The $250 that is freed up will be used to pay down People's Bank.
Total debt and monthly payments
$44,700
$900
** Bankrate.com calculators "The true cost of paying the minimum" and "What will it take to pay off my credit card?" will help you crunch the numbers.

 

 
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