W Graduated!
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Because of our travel plans, we needed to wrap our homeschool year up a bit
earlier than usual this season. So, the last entry before this one was the
l...
2 years ago
Tuesday, October 21, 2008
shedding $20,000 in debt
I am paying off my car today. It's exactly one year earlier than when it comes due, though I had still planned to pay it off sooner than this. But it reminded me of where we were a little over a year ago. Brian had $11,000 in credit card debt and we had three car loans with at least $9,000 across them. Now all we'll have is $8,200 in school loans and our two mortgages. The next thing to attack is the interest only balloon mortgage for 15% percent of our home's price. I pay a lot extra on it every month but have still only paid down $4,000 in principle in two years. The interest rate is 8.25% so we'd like to refinance if it becomes possible. Brian is talking about buying a truck and financing it, I am really hesitant to take on another loan. The book Total Money Makeover by David Ramsey was what inspired me to really get serious about paying things down.
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7 comments:
You and Brian and just starting out your adult life. It seems you are doing just fine. Don't sweat the little stuff. Just the high interest loans !
Well, I believe I could pay off my car if I wanted to but since it is financed at only 1.9% it doesn't seem to make economic sense to do so. I agree the balloon mortgage has to be the top priority.
David Ramsey is stingy.
I'm working a boatload of overtime, so i'll get a big chunk of change to put towards a truck :) (and maybe more house repairs)
I'm still not that worried about the balloon mortgage, but I would like to refinance in the next year or so,.
My top priority is meeting with a tax advisor to determine how we can get our property set up as a farm so we can take advantage of benefits since we're buying all this chicken feed and tractor fuel.
What kind of truck Brian ?
A winch would be nice. A small crane would be nice. A hound dog maybe ?
we have two hound dogs already!
Good job Lynnis! I am so impressed that you finished a car loan. While I am all for bikes, I think that having a good working car that's all paid off is one of the things that makes me feel the most grown up.
I heard that one of the proposals for economic bailout was home mortgages at 5 1/4. Do you know where that's gone?
I dunno, I read today that rates are headed to 7%. The other 85% of our house is financed at 6.12% which is fairly low, historically speaking. It might be a while before banks have enough liquidity to give good re-fi rates, plus I'm sure the house has lost value which adds to the confusion. I love our home so much though, I am still so glad it's (kinda) ours!
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