We're on our way!
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| Fri, 11-19-2004 - 2:59pm |
I feel hopeful for the first time in years that we can get out of debt (about $60,000 in cc debt). The refi on our mortgages (1st and 2nd) went through, and we'll be saving just over $400 a month with the new payments. Plus, we're getting a check for $1,000 back from the deal, AND (we didn't even know this until the closing), we don't start making the new payments until January 1, so we don't have any mortgage payment at all in December--Woo!Woo!
The $1,000 will help us get caught up on the last of our medical bills and back payments to our church building fund pledge (about 10 months' worth). Then the money that would have gone toward the December mortgage payments will give us a much-needed "cushion" that will keep us from getting to the zero balance point on our checking account, which has often led us to make late payments on things in the past.
Then come January, we'll be snowballing, putting $300 of the $400 we're saving each month onto our lowest balance debt, then working our way down the list. The other $100 will go into savings (which is at a bare minimum right now). We're posting the snowball plan in our bedroom so we can be reminded of the plan and our progress.
My DH also agreed to set up his own separate checking account, which will be funded by his eBay auctions, that he will use for his hobby-related spending (which averages between $150 and $400 per month--previously put on our credit cards). If he doesn't have the money in his checking account--too bad. And if he slips up and charges something he shouldn't, he has to write me a check to cover the amount he charged. This should help our balances go down even more, if he's not constantly charging to the accounts.
I finally feel like we're getting on track. Is there anything else we should be doing to keep up our good start?
Elizabeth

All my best,
Danni