Dumping debt! Debt snowball! Woohoo!
I did our debt snowball and we are going against everything that is Dave Ramsey. We are paying the largest debt first, and I don't care who knows it. Let me explain.
We have two debts. Two.Stinking.Debts.
Car loan: 8981.08 at 24% interest. (Don't ask. I will just say for the record: Don't buy a car when you husband is out of town and they think you are just a 'stupid girl.' They will prove you right.)
Student loan: 6785.26 at some other interest rate that isn't 24%. (6.125% to be exact.) The kicker is that the student loan can go into economic hardship deferment, where I won't be charged interest. Kind of a no-brainer if you ask me.
If we pay nothing but Marty's bonus (after Christian's root canals are paid for) and the 'rebate check' we are getting, that will be $6375.00, leaving 2606.08. Our monthly payments will take care of the rest. Once that is done we will start on my student loan.
I am also planning to get a job as soon as we get back from Ohio. Anything I make will go straight to debt, so that is kind of a no-brainer, too.
1. Super Savers - Done!
2. Relating with Money - Done!
3. Cash Flow Planning - Done!
4. Dumping Debt - Done!
5. Credit Sharks in Suits
6. Buyer Beware
7. Clause and Effect
8. That's not Good Enough!
9. Of Mice and Mutual Funds
10. From Fruition to Tuition
11. Working in Your Strengths
12. Real Estates and Mortgages
13. The Great Misunderstanding
4 comments:
Krista,
We are living the same life! ;o) All we have is a car loan and a student loan. We are paying off the car loan first, because, like you said, the school loan can be deferred if needed! We think alike!
We did go and get the car refinanced! It was at 10% through the dealer (those guys are tricky and nasty!) and then we went to a credit union, deposited $25 to become "customers" and got a 6.75% rate. It brought the payment down $50, but we're not worrying about that! We pay more than the "payment" anyway!
Take care!
he thing that kills me about the car loan is that we were taken at every turn. The guy from Chase told us to go to a credit union after 6 months and refinance it. We tried and they were very nice but said that we were too upside down in it. Then she said "If you had come to me originally I could have given you a rate right around 5-7%." I wanted to scream!
And we would have sold the thing years ago if we could have gotten what we owe. Once it gets to that point, there won't be much left so we may as well just finish paying it off. Grrr!
Congratulations on getting those debts down! It is tough to pay off all of them especially when they stick you with those high interest rates. I try hard to never buy anything on credit except cars and houses. It is tough but worth it to not have that debt hanging over my head.
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