2 Month Check-in

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!

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2 thoughts on “2 Month Check-in

  1. callmekirsten says:

    Awesome progress!! Blahhhhh I hate debt hahaha I am currently paying off my student loans, then we’ll be working on my husbands car payment and then his student loans. We just started living off of 1 income. Hopefully we’ll start making BIG progress soon 🙂

  2. Maggie says:

    Kirsten – are you following Dave Ramsey’s TMMO or just prioritizing as you see fit? I’m not judging, just wondering.

    My student loan is one of the last debts we are going to work on because it has the lowest interest rate.

    There are many schools of thought on the debt subject and how to get out of it. Good for you, whatever method you have decided on, for making that step in the right direction!

    We tried living on one income when my son was born and it did not work – but I think as we continue to make progress doing it in the future might become a real possibility.

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