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Debt update

February 21st, 2011 at 05:24 am

Today I meant to log into my other computer to get all of my debt balances to share with you all. I didn't get a chance but here is a run down of the estimated balances for what my husband and I owe:

CC #1 - $9,240.00
Game Plan: to use my tax return to pay $6,000.00 and get this bad boy paid off by my 2nd pay period in March.

On a side note, I now know $6000 is too much of a tax return. My husband and I have already adjusted our filing status to correct this. Thanks Dave Ramsey ;-)

CC #2 - $2950.00
Game Plan: My plan is to have this one paid off by the first pay period in April. I know DR says to pay off smallest to largest but I have a burning desire to get that CC#1 dead & gone ASAP. I figure paying this one off shortly after that first one won't kill anyone or anything.

This is the gasp part....we have 3 new cars we bought late last year (pre DR). We've looked into selling them but the upside down situation is not something we are wanting to deal with (unless circumstances drastically change). By the time we sell them, get new loans for the 'gap' and buy new 'old' cars....we decided that would be very expensive as well. The plan is to keep these cars just pay them off....never to buy new ones again.
Car#1 - $18,500.00 at 0% interest (daughter's car, going to college)
Car #2 - $31,000.00 at 0% interest (my car)
Car #3 - $34,000.00 about to be convered from a lease to a 'lease purchase' so I'm not sure about the interest yet (husband's truck)

Game Plan: once the CC's are gone in early April, the plan is to snowball the payments and add about $3000 a month to get the cars paid off ASAP. As we knock out payments, we'll have roughly $4500 a month to get this gone.

House - $150,000
Game Plan: My husband and I are actually in the process of preparing our home to put on the market. We are pretty sure we will be moving to a new town in a few years when my middle child graduates HS. Since owning a home is more expensive than renting, our plan is to find a rent house here locally and socking away money to pay cash for our new home...where ever that may be. We will stand to make a significant amount of money when we sell so we could possibly use that money to paydown car debt or just put away for our next house. If the house doesn't end of selling, we will take it off the market & try again later. Probably won't put it on the radar to pay off since we know we are moving later.

On a happier note, since I started my DR budget and snowball plan in january, I have managed to score a few quick wins by paying off my Sallie May student loan ($4000), my 2010 taxes ($3650) and mine & my daughter's orthodontic note ($1300)...go me!

The snowball is rolling...!!

Future goals:
MUST save more
MUST give more
MUST stay out of debt (the CC cards are cut up)
MUST stick to our budget
MUST have fun doing all the above

Have a great week everyone!
:-)

2 Responses to “Debt update”

  1. creditcardfree Says:
    1298295733

    Sounds like you have a great Game Plan and are making great progress fast! I think DR would only be upset about the cars if they are more than 50% of your income. If that is not the case, he would just want you to pay off fast...which is your plan. Again, Great Job!

  2. snafu Says:
    1298311095

    Good on you for creating a plan and putting it into action. Since moving in the future is part of your plan, perhaps this is a good time to evaluate your stuff. We used a pack of tiny, colored stickers on the back of items to identify stuff to sell, donate and what was truly worth the cost and effort to move.

    If you exchange winter for spring/summer duds, toss anything damaged, stained or worn out. Sell or donate anything not worn, unflattering, outdated or disliked. List items needed and watch for clearance/ sales racks.

    Summer is precious here so we go all out to create soft, more Zen-like rooms. Any no longer loved knicknacks/accessories, books, furniture, sport equip, toys etc. are sold on-line or yard sale but planned now. If you can co ordinate with neighbors,a 'street' sale draws better. We target those sums towards something specific as it is so much more motivating.

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