Made an enormous payment today!

iVillage Member
Registered: 03-27-2003
Made an enormous payment today!
5
Wed, 05-03-2006 - 12:46pm

Well, we finally decided to take the $2500 from my Grandma and use it to get out of debt faster. Actually, she sent us $5000, but requested that we set $1000 aside for each of our kids. And then there was the money for charity, so it's $2500 we have left for sending to debt.

Anyway, I put the money down on the only credit card that charges interest (only 3.99 percent, but still...), and it will be paid off on the 15th of the month when I make my regular debt payments. Woo-hoo!

Then, we will have about $2500 (a little less, actually) left on a zero-interest card, which we will be paying off very quickly with the extra payment that used to go to the Sears card. Then the car payment, on which we owe about $4000. Then we'll save up the money we owe our respective parents--they've said they won't accept payment, so instead we'll be doing something really nice for each. For in-laws, a week in the mountains in winter for them, us, and dh's two siblings and families. We hope to be able to do this in 2007. For my parents--we haven't decided yet. Ideas? They live in Colorado, my grandparents all live in California, we live in NC, and my brother lives in Colorado. To get the whole family together would be difficult, as $2500 would not cover airfare for everyone no matter which way we cut it. And my parents are not into cruises and other all-out vacations--they're too busy for that. So... what do we do for them that we can do within a $2500 budget (and that they can't say no to, LOL)?

Anyway, I'm very excited at this milestone, and we are now looking at being out of debt in about 12 months, including having the $5k saved up to treat our families. Woo-hoo!

Then we can begin saving for our next venture--we're thinking of buying an old multi-family unit in a run-down part of town, and renovating it with eco-friendly features and a community garden and greenhouse, and access to public transport and walking distance from conveniences, and marketing it as an eco-friendly living option. We can rent or sell the units, and use sale money to invest in more property. Of course we would live on-site, at least at first. There's more to the idea than that, of course, but it's my current dream. And once we're debt free, I can actually start pursuing these dreams!!

I know I always say this (so if you already know my story you can let your eyes glaze over and skip to the sign-off at the bottom, lol), but for those who are new and don't know, I want you to know that life has not always been so easy for us. About four years ago, we were behind on all our bills, getting creditor calls every day, not sleeping at night for the worry. We were actually packing boxes to move three states away to live with family because we couldn't afford to live on our own any more. We saw bk right around the corner for us.

Then dh got offered a crappy job with crappy pay, but it was a job, and he took it. We analyzed our bills, realized we still couldn't pay them, and made some drastic changes. We moved out of our cheap duplex into a cheaper apartment, refinanced our car (considered selling it, but refinnacing worked out better), and I got a night job waiting tables in a bar (no child care expenses that way, as dh could watch the kids while I worked till 3 in the morning--my hair smelled like cigarette smoke all the time, and I got sick of telling guys no, I wouldn't sleep with them for $300, but it got us out of the hole--and no, I didn't sleep with anyone for cash, lol!!). We cut back on everything, sold a bunch of stuff, and seriously buckled down.

So, anyway, wherever you are today, you can do this. I know you can. And one day you'll be posting your success story and your dreams for your debt-free life too!

Blessings,

Heather

iVillage Member
Registered: 01-06-2005
Wed, 05-03-2006 - 12:51pm

Heather, that is such fabulous news!!!!!

 

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iVillage Member
Registered: 03-27-2003
Wed, 05-03-2006 - 1:09pm

You are getting so close to being done. It must be a fantastic feeling.

I do really appreciate you relaying your whole story to us. It is so motivating when you actually see someone coming out on the other side of this. I currently have total debt of $30,131 not including the mortgage and have just started to focus on getting it paid off. Sometimes it seems like three or four years is an eternity, like I will never get out from under this mess. Hearing stories like yours definitely helps me to deal with the patience aspect of it all.

Keep up the great work. Looking forward to you posting on here soon that you and DH are debt free.

Heather

iVillage Member
Registered: 01-25-2006
Wed, 05-03-2006 - 1:32pm

Heather this is wonderful news and you are really on a roll now and will be on the other side of this so soon! Thanks for letting us know what you decided to do with your inheritance. I don't really think there was a wrong answer so it was really fun to see how different people thought about it and what you ultimately decided.

As far as the gift to your parents goes, do you feel like you have to include the entire family or do you think your parents and your brother's family (since they both live in CO) would be a reasonable choice? There are tons of really fun things to do in CO (did I mention I live there?:)) that if you could get your family here without breaking the bank, you could probably do something along those lines. Dude ranches, fun mountain towns with great summer activities, I could go on and on. Excluding the grandparents may make it so that you could have a more 'active' vacation and that's what CO was made for. I'll throw one link out to whet your appetite. This place is near Grand Lake which is a cute little town on the edge of Rocky Mountain National Park. There is tons to do in the park and all around Grand Lake. I keep trying to 'invent' a big group that this place would be appropriate for because it looks so great. I can't say I've stayed there but I have spent tons of time in Grand Lake through the years.
http://www.mooselake-lodge.com/loghouse.html

Needless to say, I have lots of ideas of what to do in CO. I suspect anything you can do that would give your parents a chance to have the whole gang together would be a wonderful treat and a great way to 'pay them back'. :)

Peg

iVillage Member
Registered: 03-27-2003
Wed, 05-03-2006 - 1:56pm

Thanks for the great ideas! You're right--it could just be my brother's family and my folks, and my parents would love that. Brother has a little girl between the ages of my two children, and I know my parents love seeing all three grandkids together.

Thanks for the terrific link, too. When it comes closer to time, I'll remember to ask again here for input, so I can get all your terrific ideas and pick your brain about the best places. Thanks!!

:)

Heather

Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Wed, 05-03-2006 - 3:07pm

heather-

Congratulations!! I bet it feels SO SO SO good to have that gone. Getting money from loved ones is a double edged sword...it's a blessing but you also feel like you have to do the "right" thing with it too. I am so glad you guys were able to decide and feel good with the decision....

I am very happy for you.