Creating a Loan Repayment Schedule

loan repayment schedule

When I first set our goal of paying off our Home Equity Line of Credit Balance (which had a starting balance of $14,777.05) by December 31, 2016, I was nervous that it might be overly ambitious and that we might not be able to make it, much like what happened last year. Last year, we had a starting balance of $11,576.25 but still had $8,702.59 to go by the end of the year. (Yes, we moved backwards and added to our debt as we went on a one month trip to Asia, leaving me unemployed for nearly 2 months.)

However, the difference between this year and last year is that last year, we just put whatever money we had leftover towards our debt. Although we tried to remain frugal for the most part, we didn’t stick to a budget and were still spending much more than we should have. We were eating out much more often, didn’t have a grocery budget (and wasting a lot of food) and we were still putting everything on our Visa, which resulted in a lot of unnecessary spending since there were no budgetary restrictions in place.

This year, however, we’ve cut way back on all discretionary spending. Since the implementation of our Crash Cash Diet, we’ve only allowed ourselves to spend a maximum of $140 in cash per week, broken down as follows:

  • $60 for groceries
  • $40 for household expenses
  • $20 in personal spending money for each of us

The only things we’ve allowed to come out of our credit cards are reoccurring monthly expenses like our internet and phone bills, as well as gas since I figure we should continue building up a good credit score.

As of our last Pay Day on Friday, March 18, I calculated that I only needed to pay $316.59 per week if we wanted to reach our goal of having the loan paid off by the end of the year (not including interest). However, we’ve already paid off $1,774.52 over the last 3 weeks, which works out to be an average of $591.51/week, and although that figure is pretty unsustainable since a lot of the higher debt pay offs are attributable to holiday and overtime pay, I do think that an average of $400/week is entirely reasonable based on my estimates of cash inflows and outflows.

Creating a Loan Repayment Schedule

I created a Loan Repayment Schedule in Excel to account for the 3.2% interest rate (which is just an estimate, since the interest is calculated based on the daily balances but I’m making a debt repayment every Friday) and an estimated weekly payment of $400 and was pleased to find that our Projected Debt Free date would be October 28 – a full two months ahead of target! I plan to update this schedule every paycheck so I can see how much of an effect each debt payment will have on our Debt Free date, but it’s really exciting to have it all mapped out and currently showing October 28!

This concept could also come in handy for any big savings goals, like maxing out your TFSA or RRSP limits before the end of the year. This way, you can visually see how much you have to save per paycheck if you want to meet your goal by the specified deadline and what effect each amount will have on you meeting your goal!

Date Transaction Amount Balance
March 21, 2016 Balance $12,663.77 $12,663.77
March 25, 2016 Payment -$400.00 $12,263.77
April 1, 2016 Interest $32.70 $12,296.47
Payment -$400.00 $11,896.47
April 8, 2016 Payment -$400.00 $11,496.47
April 15, 2016 Payment -$400.00 $11,096.47
April 22, 2016 Payment -$400.00 $10,696.47
April 29, 2016 Payment -$400.00 $10,296.47
May 6, 2016 Interest $27.46 $10,323.93
Payment -$400.00 $9,923.93
May 13, 2016 Payment -$400.00 $9,523.93
May 20, 2016 Payment -$400.00 $9,123.93
May 27, 2016 Payment -$400.00 $8,723.93
June 3, 2016 Interest $23.26 $8,747.19
Payment -$400.00 $8,347.19
June 10, 2016 Payment -$400.00 $7,947.19
June 17, 2016 Payment -$400.00 $7,547.19
June 24, 2016 Payment -$400.00 $7,147.19
July 1, 2016 Interest $19.06 $7,166.25
Payment -$400.00 $6,766.25
July 8, 2016 Payment -$400.00 $6,366.25
July 15, 2016 Payment -$400.00 $5,966.25
July 22, 2016 Payment -$400.00 $5,566.25
July 29, 2016 Payment -$400.00 $5,166.25
August 5, 2016 Interest $13.78 $5,180.03
Payment -$400.00 $4,780.03
August 12, 2016 Payment -$400.00 $4,380.03
August 19, 2016 Payment -$400.00 $3,980.03
August 26, 2016 Payment -$400.00 $3,580.03
September 2, 2016 Interest $9.55 $3,589.58
Payment -$400.00 $3,189.58
September 9, 2016 Payment -$400.00 $2,789.58
September 16, 2016 Payment -$400.00 $2,389.58
September 23, 2016 Payment -$400.00 $1,989.58
September 30, 2016 Payment -$400.00 $1,589.58
October 7, 2016 Interest $4.24 $1,593.82
Payment -$400.00 $1,193.82
October 14, 2016 Payment -$400.00 $793.82
October 21, 2016 Payment -$400.00 $393.82
October 28, 2016 Payment -$393.82 $0.00

Mrs. Unchained 55

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