I've been working on getting our debt under control. I can honestly say it's not horrible, especially by American standards, but its higher than I like. Things got a bit out of my control while I was SAHM'ing it for 7 years... we didn't have dental insurance, and I needed a root canal. The water pump died the Saturday of Memorial Weekend. Vehicles needed repair. Gas prices rose. We went to concerts and out to dinner. Typical Americans: we spend more than we have. But we're trying to get better.
I've been focused for a few years now on paying off that debt. Today I paid off the last of the couch purchase from last fall. While I was moving money around the accounts, I noticed the total of our loans. We owe less than $100,000 for everything: house, equity, van, credit cards. I'll be a lot happier when all we owe on is the house, but we're getting there. If the worst happened, either of our life insurance policies would pay everything off and protect those left behind.
The plan is working: pay off the credit cards and keep them paid in full monthly. Next comes the van-- 2.5 years left on that payment, which will most likely then be taken over with a truck payment for WB. 3 years from now, he'll definitely need new wheels. Pay on equity last, because the interest is deductible. Accounting for random life events, which happen more often than I care to think about, I'm hoping to be dancing in the streets in 2015.... which will be just in time to start paying Boy's college bills...
2 comments:
Wow! I wish I could say that our debt is as low as yours. We've paid off all of our debt ... except the house, but even though we still owe a lot on the house, it feels good to be, mostly, debt-free.
Keep up the good work, because .... Well, you know. Hopefully, by 2015, our house will be paid off, and we'll be dancing with you :).
Keeping on plugging away at it. You've managed well.
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