Debt Payoff Progress for February 2013

Broken BankOn the first of each month, it is my plan to track my progress on the consumer debt that I want to have paid off by February 2016 which is now only 35 months away.  I would like to get it paid off sooner, but that is the absolute latest that I would like to have it done.  After that I will reassess the next debts to be eliminated.

As I mentioned, the month of February didn’t turn out too well since I had to slow down consumer debt payoff to handle some other business issues.  I am still going to be paying off debt when dealing with this commercial building opportunity but facing a $17,000 surprise (and not the pleasant kind) does hurt the consumer debt progress.

Nevertheless, here are the results from February with the total consumer and credit card debt that I was targeting:

February 1, 2013:  $204,682.21

March 1, 2013:  $202,074.40

So as you can see I did manage to pay off $2607.81 in debt during the month.  Unfortunately, that is not a quick enough pace to get the job done.  If I want to get the balance eliminated in the next 35 months, I need to pay off just under $5800 each and every month.

Now, had it not been for the commercial building issue, I would have been on target since I wired $4000 to begin catching up the late payments on the SBA loan.  I have spoken with the bankers and they certainly seem glad to have me on board and will be willing to work with me somewhat so I might be able to stretch out the amount of time to catch up and limit damage from any late payments.

Still, it is going to take out of the budget most of the money that would have been devoted to paying off some higher interest rate debt.  I will be talking to the bankers and seeing if a lower cost alternative that will help monthly cash flow can be arranged.  Will just have to see what happens.

I think I should easily be below that psychological $200,000 mark by the end of March so that will be good news.  I am trusting that March won’t bring any nasty surprises.