creating a debt free life

Posts tagged ‘paying off debt’

Too long without posting !!

I could not believe when I looked and January was my last post !! Wow. We have had a busy year or two.

In 2012 we made the choice to let our daughter and her husband and kids, who had been living with us for a few years after moving to Texas from Calif to restart thier lives, rent our current home. We had owned the house for ten years at that point, and had wanted to move up North an hour away to live closer to my husbands work and see how we liked it up there and figured it would put our house in safe hands, and give them a huge break on rent as our mortgage was well below current rents in the area and they got a much bigger house.

We signed a 14 month lease on a nice apt and settled in much closer to work so my husband could get up an hour later, leave much later , and get home much earlier, shaving about and hour and a half a day off his comute. We loved the pool, and the lovely views off our balcony, we had a creek bed between us the apartments on the other side of the complex

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It was a lovely apartment with a lot of room and other than some neighbor issues , normal in an apartment with others so close, it was relatively quiet, and very comfortable. We even got some snow to enjoy that winter !!

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We purchased new sofas which we did pay off during one year promotional so we paid no interest

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and found this lovely table and chair set, with two leaves , not shown, for a few hundred dollars at a thrift store, so we were living in a lovely place, with some beautiful new things and enjoying our life.

 

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Then the holidays came around and I realized how far away an hour is. I rarely saw everyone, and missed our small town Christmas events we loved so much, and the holidays were just not as fun as normal and we knew we would have to go back. We loved the apartment but we missed our house so much .

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It is old, needs SOOOO much work, but it was ours and we love it. But, the problem was, at that point in time, our kids could not leave it. Our son in laws family had joined them from Calif, to see if they would like to live in Texas. So, no one would have rented to that many people and pets. So, we had a few options.

 

Stay put, not an option, as much as we loved it up there, ( and miss it now ) we  missed our kids, grandkids, house and our cute little town more .

rent a house in town, but with rents so high we really did not want to do that.

Buy a second house to live in while the kids rented ours

BINGO.

So, we thought, it will never happen. We had just purchased a brand new Passet and had a five hundred dollar payment. Not to mention we already owned a house.

But somehow, some way , we bought a house. Cute three bed, one bath house, We figured we would be in it  until the kids could buy a house with his parents,  a couple of years, which was the plan. Then we would rent it out.  We moved in the start of Aug 2013

 

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Well, by November it was clear his folks were not staying and thier plan was to move back to Calif in Jan. So, over Thanksgiving weekend we had the kids over without his parents and jokingly, sort  of, asked if after his parents left they wanted to trade houses. They were so excited and we made the plan to switch houses in the spring after we got a fence up around the property for security and safety for thier kids and pets.

So, middle March 2014 We took one day to switch houses. It took 12 hours almost to the minute and we were back in our beloved house.

So, we have been back in our cute 90  year old cottage for six months now and we plan to get back to our debt repayment again. We spent way too mcuh money on these moves and when we moved into the new house, we bought all new appliances as we had left the washer dryer here for the kids, rented a set at the apartment and then also needed a fridge and bought an amazing one for the new house . The kids have been paying us for the appliances a couple of hundred a month, so that helps at least. They have them almost paid for, at the price we gave them.

So, six months later, we have a ton more debt,  and a house we have to do a lot of fixing up to, which we would have anyway, but  now we see it every day !! No regrets, we are so happy to be home. It feels wonderful. But we are not happy about the debt we see ourselves in .

So, that is our last two  years, and now here we are plannit to restart  our debt snowball again.

We did pay off a lot of stuff before we moved out of the apartment, several credit cards that we have never used again, but we borrowed heavily to get into the house, and now we are starting over with a huge car debt and credit cards we ran up for the move and the appliances and all the little stuff we had to do when we moved ino a house that was very outdated.

The kids are still renting the house, but are in the process of figuring out how to buy it from us. We thought it was an assumable loan, but it is not. According to zillow in one year it is worth a ton less than when we bought it, which does not add up as they said the same price as the appraisal at the time, but now it says it was worth a lot  less when we bought it, so I am confused by that.

The problem we are encountering is, we cannot sell it to them via a home mortgage, as we will lose money. We will have closing costs that we just cannot justify as we will be losing a lot to sell them this house, , some of which we just did not realize but we cannot lose more. So, I am not sure what they will want to do, rent for a while and see if things go up, do a owner finanicing plan, we are just not sure . They want to talk to some banks, but we told them, we cannot sell it to you if it costs us more money. They love the house, they want to buy it really bad. So, we will have to see how we get this situation fixed, but they agree it has to be fair to both sides. When we thought it was assumable it would have been, no cost to us, low cost to them, so we will see. They do not plan on doing anything for a while, they have to figure out what they want and it will be at least the start of the year before we discuss it more. If they were to finance it, thier costs will be much higher as well , closing, down and all that. We cannot help them, both because, we cannot help them and the bank said, we cannot help them, and they have to pay us back at least our down payment as that was the agreement. So, not really sure how it will all go, but I know we will find a way to work it out for all involved.

So, for now, our priority is to get back to our debt snowball in the next  few months, after bringing our savings back up to where we need it  to be. We have about 1500 but we need a lot as emergency because  if my husbands mother , who still lives in Calif ever needs him to go out there for her if she has an emergency or sadly one day when  she passes and he has to spend weeks out there taking care of things with his sister, we have to have a months worth of money in the bank to give him time to do so and it not affect us at all. Work will give him the unpaid time off, but we need the money to cover our expenses . So, I think we are going to do a full months expensies, plus travel expenses, which might be as much as five grand, which would make us feel so much better.We do not plan on needing it for years, she is not 80 yet, and in good health , but we have to be sure we are covered just in case.  Another thing we plan to do is just add a bit to the mortgage each month to get the principal down a bit each month. We have owned it 12 years but refinanced a couple of times to get better terms, not to take out money, you cannot do that in Texas without a ton of equity which we have never had,  adding to the  mortgage, so we still owe a lot and still owe on our PMI for another 14,500 to get to that 22 percent to drop it. So, we have a lot of work to do. 40 bucks a month brings it to 200 a month toward the priciple . That is our goal, to get us 2400 minimum paid off per year.

It is becoming increasingly clear , with retirement just 17 years away if he works until 70, that will have to really work hard to get out of debt, pay off the mortgage and save for retirement. That is for another post, but these concerns have gotten us back on path to saving and paying down debt.

So, life kind of took us on a loop, or we took ourselves on a loop I suppose, they were decsions we made. For now, we own the two houses and look forward to finding a way to sell the one to our kids. If they chose to not buy it, we will rent it to them until they move and buy else where and then rent it out for income as the rent would be more than the mortgage by quite a bit.

We plan to stuff away as much money as we can to get that five grand and then start paying off one debt at a time, as fast as we can per the debt snowball. We do have some promotional   balances to watch so we have some things that may have to be paid out of order  or maybe even before savings are exactly where we want them to be, to keep from getting hit with interest, but only one is due by the end of the year for a few hundred and the rest do not start to  hit until march next  year so we are keeping our eyes on these things and plan to knock each one out before they cost us money.

So, that is where we are at, and I hope to be posting some real debt repayment as well as savings each month. We are very determined and I plan to start reading all the wonderful personal finance blogs I follow and just work hard !!

Thanks for stopping by !!

Stephie

 

 

 

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Happy new year and thoughts on this new year

Happy New year dear readers !! I cannot quite believe the year is ending and a new  one is about to begin !!

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This is a set of wine charms I just made and  had to share on this blog, so perfect !!!

I am alone in the house today with my thoughts and wanted to kind of do an informal review of the past year. How did we do with our finanical goals, well, ehh.

We started out the year with our wonderful coaches and they helped us a lot, thanks to you Jeff and Robin !! We paid off a lot of debt with money from a car accident and were on our way to debt free and then decided to move back to our home town and buy a second house as our daughter and family were renting our home and due to the amount of pets and people they would not have been able to rent elsewhere.

We had to buy applicances for the house, light fixtures and some other things, and we ended up with some debt again. Most of it interest free for two to three years, but still debt. We kind of fell off the debt free wagon in some ways.

We still paid off a lot of stuff but end of the year when overtime went away and things were really tight before we could get our savings back up to a grand we ended up using one credit card again

We are not proud of this, but we are not letting it get us down.

We are starting this new year with renewed excitement about getting debt free and we still plan to make our coaches and ourselves proud !! Losing the overtime when he was injured at work, showed us the worst case we had worried about for yearsand it was not as bad as it could have been. Now he is released by the doctor and back to his regular work and overtime . We will get our savings up to a full months living expenses and then knock out debt this year. Usually only a grand is suggested, but we want a full month of living expenses plus a few hundred , for peace of mind. My mother in law lives in another state and if she were to have issues and David needed to go back there for a few weeks to a month, I want to know he could. FMLA would allow him to go, but money , or lack of, could be the reason he could not go. The additional amount needed to be a grand over living expenses  eventually will get put in there once we knock out a bill or two to make sure we have travel expenises if we had to leave. We have a lot of debt left to pay off and I will post on that another time. I do not have everything in front of me but in Jan I will sit down and figure out the debt owed and debt plan.

Despite some set backs last year, we are excited to move forward into the next year. After a long discussion with our daughter and son in law, it turns out the new house is much better for them now that our son in laws family has decided to move out, and back to where they had moved from so we are doing the work needed to get this house ready for them and in a few months we plan to switch houses and they will buy this one from us in a few years when they are ready !! They love this house we just bought  as much as we love the one they are in, so we are both very excited to make the switch !! We will gain more house and rooms, but they gain a set up more suitable to them and an attached  one car garage we  used for storage but as it has heat and air in it, they will use it as part of the house. The previous owner was about to expand into the garage and had a vent put in and working when he died and his widow we bought from was never able to do the expansion.

It will be an interesting few months, a lot of work, we have to put a six foot fence around this house, with kids and a huge dog that can jump a short fence, that is mandatory to them moving in here.Also since the owner we bought from owns the house next door, it was her moms and she sold us this one to buy that one from the estate,  so since 1964 when both were built there has never been a fence between the houses and she has a dog too, so fence is mandatory !! Our son in law will be helping with the fence and we are all very motivated.

A busy year, lot of wonderful goals and plans and I will be writing more about it all as the year goes on.

I hope everyone has a wonderful year in 2014 !!!

Thanks for stopping by !! here is the home we are moving back into !!! Our beloved 90 year old cottage !! That  picket is our first and biggest project when we move home, it is a mess !!!

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here is the home we are in now, but selling to the kids !!the yard art and flags are the sellers, she took them next door !!!

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One step back …

Since my last post we have moved into a home we purchased. For some reason this move h as been one of our hardest yet !! We had rented an apartment closer to work to see if we would like it, and we did not . Our home is being rented by our daughter and her family so we bought a second home.

We did a lot of the things you are not supposed to pull this off. Took out a 401 k loan, Suze Orman would skin us alive for that, but we only had 20 grand in the account and borrowing half allowed us to pay off the old loan and pay for the closing we had to pay and the five percent down on our 104 grand house. We had to pay to rent the truck and gas and all of that, and whew, it was a mess.

We had no washer and dryer, no fridge, so we got out our Best Buy cards and bought them with 36 months no interest.  We hope to get them gone in about 24. We just got a zero interest card for 18 months with a way lower interest rate after those 18 months if we do not manage to pay off the three  cards we plan to transfer , although we should have no problem doing so. We will divide the balance by 18 months and get it paid off.

So, we are backwards a bit, but still just as determined to pay off debt. Just a detour, or as I put as the title , a few steps back. In  March we will pay off our largest payment, his credit union loan with his bonus and that will free up almost 300 bucks a month  to pay down the new credit card and when that is paid off it will all go to the Best Buy account since that has the longest no interest amount and by March of 2015 whatever is left his bonus will take care of  and leave enough to tackle anything else we have not paid yet. The car is the last thing we will tackle, but once all the other debt is gone, we hope to take that six year loan and turn it into a four year loan, maybe even a bit less. I would love to make it three, but four is most probable at this point.

So, we took a few steps back, but we will get caught up very fast and get back on track. The whole point was the mortgage on this new house is only 750.00 a  month, to rent it would be  300 more a month. So, whatever it took us to pull this off, we are happy to own the house we live in, well, the bank owns it, but at least we are not renting !! We are paying much  less than rent would be, and very happy to be back in our home town and close to our family again !!

I will be posting on a more regular basis,  but I have been posting on my beading post a bit more regularly if you want to check it out. IT is not always beads, but usually is !!

Thanks for stopping by !!

Stephie

What does wealth mean to me /you ?

 

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Another blogger posed the question, what does wealth look like, or mean to  you. I did not have to think long. She suggested some things, among them nice cars or house, but to us, that is not what we are going for.

 

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Wealth to us, my husband and I means security. Freedom. When you owe money, you are in many  ways, working for the  company you owe. You work for them, not yourself. You have to plan your life around work you have to do to pay those debts every day. Now, I know there is money you make that does not go to them. But  if you have substantial debt, you have a lot of hands held out each month and often times, when you include your mortage, they get a lot more  of your check than you do. Period the end.

We have dreams of course. We want to pay off our house and we want to buy a building downtown to start a business. With no mortgage, that is possible. With a mortgage, possible but stressful and not probable.

Retirement for us  has never meant to stop working and just play golf and sit around be lazy. Quite the opposite. We want a business to run, something we love to do when he retires from where he works now,  so we keep active and busy . We want reasons to get up every morning. A purpose. We want to be part of the community and get involved with community events and enjoy being out in the world.

David will never retire from working. He is very vocal about that. He saw his own father retire and sit in a recliner and die. He refuses to own a recliner. They are not allowed in the house. He will retire from the company he works for between 70 and 75 years old.. What age depends on where we are on this plan. How much is saved, do we have our building already, how much security do we have in place.  We have just over 18 years until he is 70. We cannot waste any time. We have  to get our debt and house paid off asap so we can make the  decisions that affect the quality of our golden years. Now a days  you can expect to live into your nineties and maybe even 100 and that is our goal, we joke we want to live until at least 110 , and we will try to do that , but we want to live until the day we die, not  be in a  nursing home or sick, so we are working on our health as well.

Some things are out of our hands, but we are grabbing  what we can control. We are working to get thinner and healthier. Can we prevent anything from happening, no, no one can, but we are thinking positive and planning for a long full life. We CAN pay off all our debt. We CAN save up a huge nest egg both for emergency and retirement. We CAN walk and eat right. So, we CAN do a lot. We also CAN plan and plot and come up with a great retirement business that will keep us alive and happy and excited to get up every morning.  Something we can do together.

So, this is step one, which is very critical. Pay off our debt.  Every single dime, including the house. Then save. Save money like squirrels save acorns.

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Once we have an 8 month emergency fund and have enough money going into the 401k, then we start saving again for our business. There is nothing romantic about our plans. Nothing edgy. It is just staying the course and making sure we do what we need to do to make things happen the way we want them to happen.

We recently read a quote that said something to the effect of , dreams without plans are wishes. I have no clue who to give the credit to, but it is so true. If you dream, but never make a plan for that dream, it really is just a wish. It will probably never come true.

Things happen and that is okay. As long as we have our emergency fund, it is all good. Occasionally our savings will be  redirected to emergency to rebuild if something like a blown water heater, or air condiioner malfunction happen, but then we just rebuild what we had to spend and, once done, back to where we were at. Simple. Easy to follow.

Lets face it. Budgets and diets are both alike in many ways and people resist them for the same reason. It is more fun to not do them. Eating and spending what you want sounds like fun, but is it really ? At the end of the day you are fat and/ or broke and that is certainly not fun.

We had  50 grand in the bank once. Years ago.  An inheritance. What an amazing feeling that was. But getting laid off and being out of work for months before he had the job he has now,  and having to do major overhauls on two baths that were close to unusable, and some foundation repair and put up fences, and and loaning to our grown kids who were in need at the time, who did pay back every cent within a few years, just kind of ate it up. Very sad.

I want that feeling again. It was so fun to walk into a store and KNOW y ou could buy anything you wanted cash, but are choosing not to. It was fun to know we could pay cash for a car, but did not !! We loved that feeling and cannot wait to have it again.

So, we know how it feels, so we are working toward that feeling  of security that money gave us at the time.  Wealth to us is many things, but not fancy cars and houses. If we have those one day great, but they are not high on our list no matter how wonderful they are !!

So, what does wealth mean to you ? How do you define it ? It can be a very defining question !!!!

Hope you enjoyed my scrabble piece and chain  play and my modge podged acorns, I love playing and making things to put on my blog !!!

Thanks so much for taking the time to come by, it  means a lot to me !!!

Stephie

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Living the lifestyle

I have not been posting much and for that I appologize. Not much to write about honestly. We are  just doing what we are  supposed to be doing. Making minimums and paying off the next bill on the list. Four down and five credit cards to go, so that is very exciting !!

We have had our share of emergencies. Close to 2 grand in car repairs, weather warming up and we both realized we are at our biggest weight and needed some clothes , and some repairs that have to be completed on our house.

Currently we are saving to move. We had moved up  by my husbands work to save money on gas but the combination of being so far away from everyone we know, a full hour plus and living in an apartment with a pretty bad upstairs neighbor, we are moving when the contract it up. I have reached my limit. Loud walking is one thing, but a kid leap frogging himself all over the apartment as late as eleven at night, we are done. It is so stressful, words cannot even describe it. No complaints have worked up to now. The manager sent them a letter right before we left for five days, so we will see if it worked. This kid is up until as late as one in the morning on school nights, it is crazy. We just  have to get through a few more months,  and hopefully by Aug 1 we can be in a house back in our home town. We will rent down there until our kids and our son in laws parents purchase a house together and we can move back into our house.

We both  cannot wait.

We have 1400 in savings. I had more but we just spent 1200 on the  lastest car repair. That one hurt. Manifold gasket and it needed a tune up very badly. Air was bad and we had them put dye in when they charged it last summer which allowed them to find and repair the leak. In North Texas, air conditioning in your car is not a luxury !! We replaced the car that was destroyed in Feb, no payment due until June. Hated to take on a payment, but we have to have a more energy efficent car or the gas once we move will be around 500 a month. the car cuts that in half so it only costs us the differance between what the gas was and what it is with the car. About 131 a month. Insurance is only another 39 a month. Great credit and great driving records. We had not planned to buy yet, but an end of month deal under the value of the car was just something we could not turn down at this point. We will need this car come Aug 1 if we do not want him driving his 15 year old full size pick up a 100 miles round trip a day.

Anyway. We are still doing good. Buttoning down our groceries at this time. Beans and rice for a bit, and I am being literal. Beans, rice, a bit of meat and veggies, that will be most dinners . We have to get about 4 grand in the bank, 1000 to 1200 first month rent for a house, and then the same amount as the deposit. We are hoping for less, but planning on the highter amount !! Then the amount we need to rent a U haul and move ourselves, which should not be a lot. Most of our stuff is still at our house. We have a good size storage barn, a gardening shed and a work shop. They are all full !!!

Big building in back is our storage barn, white buiding in back is our gardening shed. Cannot wait to move home, but it will be up to two years.

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just one side of the fence we have to repair. Only the posts are good, all the slats and stringers are bad. About 800 hundred bucks  to do the entire fence  when all is said and done, but about 30 bucks a section so just a bit at a time.  We hope to finish by the end of summer. When we bought the house eleven years ago we were told it was just lightly sprayed after it was put together, with nails So, raw wood on raw wood and the neighbors sprinkers just rotted this side completely . The other two sides are not as bad, but still pretty bad as the previous owner had all the sprinkers aimed at the fence. It was only a few years and we havce owned it 11 years, but the damage had already started.  So, we are doing it right this time, thick coats of paint on each piece before they are screwed together and put up with L brackets. It should last a lot longer this time. We will also be able to take off bad pickets easily and replace them and bad panels will be easy to remove in the future.

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The opposite side

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the front which is the best of the three but still pretty bad.

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We have two front windows, old sash windows that no longer are openable  and we have to replace them but that will not be much . We will replace for now with the  inexpensive windows the previous owner used on the rest of the house. Our dream one day is to replace them all with the old fashioned, but new dual paned  sash windows, but that is a ways away !! So many other things to do first. Really, once these two projects are done, the rest can wait until we move back into the house in a year or two. Debt paying will be our priorty and then that six to eight month emergency fund.

So, that is what we are up to. We took our entertainment, and  blow money , for the month and our weeks food and gas to drive out of state to my husbands cousins house, we are very close to them and had not seen them for five years. They had some wood and flooring they wanted us to pick up so they could clean out thier garage and it gave us some great stuff for the house. Win win. . We had a nice trip and did not have to spend a dime while we were there . We ate at home and the meal  we had to eat on the drives each way, were covered by the  money set aside. We had never really budgeted for a trip before so this was very exciting. It was the most relaxing and fun trip we have ever taken because we knew our budget and stuck to it.

So, anyway, this is what we are up to. I will make sure I post at least weekly. For now, work on house and save every penny When the savings is where we need it to move in three months, then back to attacking the debt . Five more cards to kill off and then a credit union loan. Very exciting !!

here is a couple of pretty pictures for our drive

We left at five thirty am, so we got to see the sun come up , so pretty !!

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just one of the amazing meals they served us, we were spoiled rotten by good home cooiking , thanks so much guys, you are the best !!

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drove into the sun set on the way home !!

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Living stress free with an emergency fund account !!

We are in awe of how far we have come. Never in our married lives have we had an emergency account to cover a, well, emergency. We lived check to check and ever had a dime between pay days. It did not seem to matter how much income came in, it was spent.

Well, we had to get our emergency account in place before we started to pay off debt, and what a blessing that has been.

Yesterday my husband was late coming home, he had to stop by the auto parts store to get coolant as it was all gone in his truck. We have a brand new radiatoar, thanks to our brand new emergency account a few weeks ago,  and now here  we are with another issue. He called around and found out it is possibly a head gasket but the truck cannot be driven and we cannnot get it into the shop until Monday, an already scheduled vacation day and so he had to call Hertz to pick him up for a rental car as he has some overtime coming up this weekend, plus work today , so he had to have a car.

So, after he  had made arrangements with our mechanic for Monday , and we made arrangements with our daughter to borrow her husbands truck for the week when he is down there to drop off the truck with the tow truck , as our son in law is in Kuwaitt right now, so we only need the the rental for the weekend, and got home with the rental , my husband looked at me and said. Wow. This has been amazing. When have we ever had such a huge emergency, 114 for rental, possible 850 for car repair could be less if it is not the head gasket , although it probably is,  and not had to use a credit card or panic trying to come up with the money to get it fixed. We have the money in the account , so no stress. It is amazing !! We actually had a few hundred extra we had  not anything with yet, so it will helpe us a lot so we do not have to take our entire emergency account.

We are so happy with this journey we are on. We are slowly getting the debt paid off, and for the first time in years, paid the IRS off on the 15th, $2900 bucks instead of paying it off over the next year with high interest and penalty fees each month, and have managed to take our deductions down enough so we will not owe next year and may even get a bit back. We have a set budget and though we have been paying all our bills every month for the last ten years,  and have good credit because of it, we seem to have more money every month because we are not spending every penny left over like we used to. With our balances being paid off, our credit score is going up every month ,  as our large balances were keeping our debt high so that third of of credit score was low because our debt to income ratio was bad. Now, four cards gone, an old utility bill  paid,  old and new medical bills paid and some balances lower on the other cards and more cards will be knocked out each month until they are all gone. We are shooting for the end of the year being debt free !!

I am so grateful to our wonderful debt coaches, Jeff and Robin and to  Jeff Rose from the Debt Movement who set us up with them , as we are so motivated by all the help  and advice we have gotten from thier experience.

This is a great journey to be on. I strongly urge anyone reading this, who is in debt, start now.  The benefits are great. The feeling of being in charge, instead of the bills being in charge, is amazing !! We have so much hope for the future now and feel that we can accomplish so much !!

Emergencies have no power over you when you are prepared. Of course in time we need a bigger emergency account. 1200 is a good start, but  if a roof needs to be replaced, if you h ave a  AC or heater go out, 1200 will not cover it. But once we are debt free, first thing is geting it up to a six month emergency fund.   It is a great start !!

Anway, wanted to share how great an emergency fun makes you feel.  It did what it was supposed to do, covered an emergency and kept us stress free. It is a wonderful feeling !!

Stephie

Debt updates, and why do we let fear make our decisions about money ?

I was happy this morning to pay off a very old debt, I should have paid off three years ago, and I am not sure why I did not  ? They offered me a settlement but I paid the entire thing, I owe it, and would not feel right not paying it off. It was an old utility bill and that 306 bucks I never have to think about again.

I also paid off some recent small and large medical bills, totalling $364.00 paid to file our taxes and then they will take out the taxes we owe in the next few days and we are done.

For years we have paid huge tax  bills each year because we did not have enough taken out. For some dumb reason, we thought we would have a hard time living on the amount we would be left if we had enough taken out. We relied on his bonus every  year to pay the taxes when they came due saving up the differance when the bonus was not enough and often having to give the IRS the 105 to set up payments and then we paid interest each month until it was paid.  We finally bit the bullet this year , went down to zero deductions and guess what, we are fine. We are paying off debt, able to pay our bills and eat, and once we  see that huge amount come out of our account this month,$ 2908.00 , whew, we will never have to do that again. Next year we will at the very least break even, but what I can see so far, we might even get a bit back and that will be wonderful  !! That has not happened in way too long.

It is funny how we let our fears control us and end up making dumb money decisions becausae of it. Had we just tried the deductions, we would have found, we are fine.  We would not be paying out this huge amount right now. I can only imagine how fun it will be to get  his bonus next year  and  not need to pay taxes with it !! I cannot wait !!  For the first time in a decade or more, since we had kids home to deduct, we will not have to dread doing our taxes. Even if I am wrong and we still owe, it would be so little, a couple of hundred, but I  honestly  think we might get a couple of hundred back the way it looks, so that is exciting !! It could be even more than that, but it looks like at least a couple to a few hundred back, and that is huge to me !!

So, no more fear based decsions. I think just paying off debt takes away fear. Every bill you never have to pay again, makes you feel stronger. Debt makes you feel powerless. I hate calling and getting online every month and paying those bills, each one I pay off is  ten minutes back in a my life each month, not much, but the stress of worrying about them, the weight of them, plus that  ten minutes per bill adds up and so the freedom I will feel each payday when those bills are gone is tremendous !!

So, to date our debt repayment total is, adding in our tax bill, $5,476.00, Two credit cards are paid off,  and  four more are slated to be paid off as the car insurance settlements come in so that is very exciting . Next month I will update as I get those paid off.

So, I am very happy with our progress and look forward to reporting another 2800 being paid off  and maybe even more depending on extra overtime and any money I can make on my jewelry sales !!

Thanks for stopping by, I look forward to more updating soon !!