YOU Went Down Mister!

iVillage Member
Registered: 11-14-2008
YOU Went Down Mister!
4
Wed, 06-03-2009 - 6:05pm

Well, well, well.............

My personal credit line is gone. Empty, at zero, zilchola. I did not close it, just paid it off. Little frog ran the marathon. Oh yeah, and we have a new car too!

I know some people on here don't believe in new cars but we live rurally and it is very good on fuel economy and we feel safer with the road side assistance especially with my kids. We have been saving for this item. This was not an impulse buy.

I must explain...

I traded one debt for another but it is a much better situation.

I think I have mentioned before we had this car fund going.

Cost of new car 29000 ish plus scotch guarding and a touch of extra warranty.
Trade in value of old car 5000
School incentive voucher(bf graduated from engineering last year, had to use voucher with in one year)750
Savings for new car 7000
Savings for timing belt that need to be done very soon $1000
(old car needed tires too in about 6months that we had not saved for)
Interest rate for financing on new car is 0%

With my unsecured personal credit line being at 9900 we took the 8000 saved(savings and timing belt savings) and applied it to my loan. I then took 1900 from my 5000 emergency fund(to be built back up asap) to pay off the personal credit line. We then financed the car to come out with a $750 monthly car payment for 36 months at zero percent. The money fits in our budget and went from savings to a payment but we expected that. I think I have at least 100-200 a month left over in the budget to put towards house savings still at the end of every month as well. I will continue to be frugal and save.

Soooo we do not have to do the timing belt or new tires for the old car. We took advantage of the voucher from bf's education and saved probably, I figure, at least $500 in interest I would have had to pay on my personal credit line before I could get it paid off. It is a secured loan where my personal credit line was not and I built credit history in my own name(took out and paid off a loan in my own name). I don't think I had much because I have only been divorced for about 2 years.

I am not sure where to go from here, other than building up the efund for my store back to where it was. I know my store needs help. I have a store credit line and a land and building loan. My cash flow is precarious at best right now with the break in that happened Sunday night.

I know I need to be happy with this situation(Paying off personal credit line), however, I have been reading everyone's posts today LOL. Everyone seems really over whelmed with future decisions such as Children's education, retirement and other big ticket items, none of which I have started.

I won't have a lot of extra money kicking around but at least I can save it(divide up between kids education, one will be out of high school in 6 years, and retirement) or help my store or all of it. Another day, another focus, hopefully with a couple less worries. You never know what the future brings. I need to do some thinking. I will likely ask for advice from this very board!

My sister asked me if I was going to lighten up and work less hours. I said that is very unlikely, as I am currently working a 12 hour shift. LOL!

Thank you to everyone for being part of my journey. Perhaps a new ticker or two is in order in my next stage. Good luck to everyone in your own current battle against debt!



iVillage Member
Registered: 08-02-1998
Wed, 06-03-2009 - 6:12pm

Congrats on your accomplishment.

Our last car we bought was a new car as well, it will be paid off in 3 months and hasn't given us any trouble in 4 years, we also purchased the maintenance package with it so we never had to worry about where the $$ was coming from to pay for the servicing.





Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Wed, 06-03-2009 - 6:17pm
Congrats on squashing that frog! Sometimes the journey is about making decisions, and it sounds like you made the right one for your situation. Good luck on the next phase!

Sarah


Sarah
iVillage Member
Registered: 04-12-2007
Wed, 06-03-2009 - 7:31pm

Congratulations!


Robyn


iVillage Member
Registered: 10-01-2008
Thu, 06-04-2009 - 3:32pm

"You squiished it's gums out", (quote years ago from DH's tiny cousin. Someone accidently open a storm door on a frog sitting on the porch.)

Norma


"Patience is the best remedy for every trouble"- Plautus