I have set this blog up to keep track of my debts, and to write about my efforts to pay them off as soon as I can. My total debts are quite high. Hopefully by writing about it for an audience, I will be more motivated to keep paying off debt, and maybe get some support from readers as well. I would like to be totally debt-free and financially independent as soon as possible. This way I can continue traveling the world without having to worry about debt.
Strategy for paying of my debts
I will start with paying back the money I owe to several family members, because I do not like to be indebted to them, and I do not want them to hold it over me. I will start with the lowest debt first, and then work my way up to the higher debt. So first brother 1, than brother 2, than my dad, and lastly my mom.
I will pay off my student loans last. This is because they are to an institution and therefore more anonymous. Also, if I finish my studies before I turn 30, some of this loan will be turned into a gift, thereby lowering the total debt. Normally you would have to start paying monthly payments 2 years after you graduate. The height of these payments is set according to your monthly income. I could wait until I officially have to start paying, but I prefer to get it over with as soon as possible.
What money will I use
At the moment I am working through an interim agency. As I am still studying and don't have any proper qualifications, this work is low skill and low pay. It is also hard to get a lot of hours, but I work as much as I possibly can. Right now school is still slow, but in a few months it will get a lot busier, and I won't be able to work as much. I am trying to supplement my income with earning some money online, but this is a long and slow process, and cannot yet be counted upon. I will try to grow this online income a lot in the next few months, and hopefully sometime next year my full income will be made online.
Right now I am living very frugally. I do not spend money on clothes or things. I have not found an apartment yet, so I am staying with brother 3 until I do. This means I'm not paying any rent at the moment, but that will change soon. I am basically just spending money on the bare basics to survive. Whatever is left at the end of the month will go towards paying off my debts. In order to keep sane though I need to travel a little bit every now and then, so sometimes money will be spend on little trips around Europe.
Goals for October 2010
Right now my bank account is into the negative numbers, by the end of the month I want the balance to be positive again. I also want to completely pay off brother 1, so that is €166.
No comments:
Post a Comment