Well, it has been two months since I last wrote. We took the month of December off, despite my better judgment I agreed to it. Even though we weren’t doing the Dave Ramsey plan I feel we still manage our money pretty well. We did stick to a budget for Christmas and I don’t think anyone felt shortchanged in the gift department.
So where are we at?
In October we had six short-term goals. The last of which was to pay off our La-Z-Boy credit card by June 2014. That is the only outstanding debt that we have for our short-term goals. However the plan has changed; the La-Z-Boy credit card is now the last thing to be paid off in our debt snowball. We are currently working on paying off the loan on our Expedition. When we started this plan we were on track to be debt-free except the mortgage in January 2017. By reallocating funds from our savings account and getting gazelle intense that date has moved to January 2016.
In October we paid off three credit cards, and another credit card in November. In December we paid off the Lending Club loan and made additional payments on the Expedition. We are starting the new year with a new plan, we are motivated, and we have every intention of being debt free by December 31, 2015!
Our debt snowball payment is up to $637. That means each month we are paying 2 1/2 car payments. At this rate we can pay off the Expedition by the end of the year with just a couple extra small payments. Had we chosen to stand that like a normal American family we would still be paying off the car through February 2017. Screw being normal!
The latest snowball is currently set up I have ranked our debts by interest rate – next up would be the baby loan. We have a few months left to decide if we would rather pay off my student loans and La-Z-Boy before the baby loan. the baby loan is actually a gift if you can call it that from my in-laws. When we decided to pursue IVF treatment they graciously offered to loan us some money – I will never take such a gift again. I didn’t know at the time that they were going to use our loan as a tax loophole – they make enough money that they took out a HELOC on their house for the tax benefits however we are on the hook for it and now they cannot refinance so the subject of our loan comes up often. It is uncomfortable to say the least.
anyway, that’s the update… We are on month 4 of the Dave Ramsey plan and we have paid off $13,000 worth of debt. We are living like no one else so later we can live like no one else!