Slay the 60K Heloc Monster or …

I have roughly 60K left on the damn heloc monster. I have been running numbers, and trying to decide what to do. If I get a chunk of money from the life insurance, put half my emergency fund on it, and don’t put anything into my RRSP or TFSA for a year, I could conceivably pay it off in 2014. But, I have been using a two pronged approach up until now. I have been paying down the heloc, but also contributing to my retirement savings. I’m not sure if I feel comfortable with not saving anything for a year. I have always believed in the power of compounding, and to lose a whole year of compounding is huge.

On the other hand, it would be really sweet to start off 2015 with a clean slate.

What to do?

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3 Responses to Slay the 60K Heloc Monster or …

  1. Jane Savers says:

    I just spent all of 2013 with no emergency fund because I was putting it all toward debt. I am darn lucky that nothing big and bad happened or I would have been in big trouble.

    I would think that not touching the emergency fund would be a good idea and I also think that skipping saving for a year might be a wise idea as well. I am very worried that interest rates are going to start to rise so I am concentrating on paying my HELOC.

    Could you figure out how much RRSP deductions you would have to make to minimize your taxes then use anything above that to pay debt?

    I figured out how to get my comment to post. I need to log in using google+.

    • Judy says:

      I’m glad you figured out how to comment, it gets lonely here sometimes. Lol.

      I am worried about interest rates rising also. I noticed the other day that interest rates on GIC’s at one of the on-line banks that I use have gone up. So, it makes sense that the heloc rate could go up also. I just want to be done with it. It is a huge debt, and slaying it in one year would be a big task, but I think I can do it, if I put my mind to it.

  2. Alicia says:

    Does your company match your retirement savings? I would forego saving in your TFSA, but if your employer matches your RRSP contributions I would keep those retirement contributions going. Perhaps a bigger-prong, smaller-prong approach?

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