This entire weekend was lost to Car Hunting. Now, my husband is a car geek and we cycle cars frequently. He gets tired of a used car and gets another used car as trade. But, I finally have one of the nicest yet and I am loving it! I Hope This Inspires anyone who is ready to tackle their own debt!!!!!! Keep up with me…this is a mouthful!
1. Student Loan $7,000 at $150/month…use Pet sitting money, 2 extra paychecks each 2006, difference in raises. 2007 Paid!
2. Credit Card #1/2 after consolidating both our total loans in 2006. $12,000 balance at $241/month. Use the $150 min. Student loan payment and all other funds above. 2009 Balance $6,000.
3. Combine with CC #2. New Balance now $45,000 at $490/month. Transfer that to new loan. Now $431/month. Use $241 from Min payment used on CC #1 and all other extra from above and apply.
4. 2011 $16,000 balance. Cash out 500 shares. Paid off!
5. Take my 2011 raise and buy extra shares at $80 more/paycheck. Extra money we used to pay on debt pads checking and paid off last incrued loan of Quads and quad trailer.
6. 2012 Taxes/extra pay to vacations. Pete’s raise=my new car. More money in checking. Bonuses/pet sitting to Savings. Future raises=up 401k.
CARS! 2006 trade Mazda for Honda. Extra money to collections debt. 2007 trade truck for Pathfinder. Lower payments. 2008 trade Pathfinder for Murano. 2009 trade Murano for Altima. Lower payments and balance.2010 Trade Honda for focus. Still only one car payment.
We have been together 7 years (married 6) and we began our relationship by combining debt. He had recently divorced and had 2 large Credit Cards. I had a loan (car), student loans and I did the get Credit Cards at Dept Stores and let them go to collections when I was out of High School and my credit was horrible! If I remember correctly (may be off a tad), 7 years ago we had over $60, 000 in Credit Cards/loans, $7,000 in Student Loans, and a car payment. My Credit score was 577 and my husbands was in 600’s! We then realized we need to go on the attack! We combined/consolidated by collecting numerous credit offers for a while and deciding on the best one’s. We transferred to a loan that was $0 fee in balance transfer and much lower rate. SEE ABOVE
A Whammy! Identity Fraud…again! My husband had been hit 2 years prior to us dating and now it was happening again. A false bank account opened in his name and thousands of dollars in checks were written around town. Countless hours a week were spent on paperwork and phone calls. The cause..the man who initially created the fraud was in jail and sold his victims info from the cell. One criminal was fortunate enough to gain my husbands info and opened the account (even had a DL w/ a photo-not my husband-but all his info). Well, he was in a car accident only 1 hour North of us and they found many fraud papers and checks in his car of multiple victims.
Credit repaired on that fraud note! We spent the next 3 years attacking that last card. In that time we traded our car for a lesser car…a while later we did it again and paid off that loan so we had only one car payment while paying off that last (high dollar balance) card! At the end of this summer, my husband’s company stocks were very high in value and decided that since I just got a nice raise we could pay off that last card! Now in the 3 years we payed it from $33,000 down to around $16,000. Our final plan…cash out 1/4 of my husbands stock he has and pay off that card! Then with the difference in pay from my raise, up the amount of stocks we purchase and pay on each of his paychecks! In a sense-pay ourselves back in time for what we cashed out. We always get a refund and this year we may not get much because of the cash out, but we are debt free!
What now? See #6 above! We are in a good running right now for a decent retirement and all that stress and dedication is paying off! And now for the prize (and may I add an awesome rate and extremely low payments thanks to our higher credit scores now)…….
|My new CRV..isn’t it sexy?|