Thursday, August 14, 2008

On Our Road to Debt Free

I love my husband. He's a good man, my best friend and a great Daddy. But as my financial partner...let's just say he's lacking. We own my van free and clear, and our '73 Mustang free and clear (we bought it two days ago), we owe a substantial amount on the Blazer, the ATV, three credit cards and our house. The amount owed on the credit cards isn't a large amount but enough to make me uncomfortable sitting there like that. So, I know I've said this before but I want to be debt free with the exception of our home, and at most one vehicle. We could at any time live on what I bring in (the smaller income) if necessary...I would like for it to never come to that but that would be nice. So, here is my plan of action in writing so that I will obey it. Every week I will pay a little towards the credit card with the highest interest rate, instead of starting double house payments this month, I will start putting money towards the credit cards with the highest interest rate, then move to the ATV and finally the Blazer. After this week we will no longer owe $175 to daycare every week, now we will only owe like $50 for after school care, so every week that will free up $125 so that's a really good place for money to go, every week pay an extra $100 to our credit cards, we could even rotate them, but I think I'd prefer to go one at a time to make it look like I'm getting somewhere faster...and after the first is paid off, I can apply the monthly payment plus the principle payment to the next card, and if I do that every time I'll only gain momentum! I have lots of goals, I would like to have all credit cards paid off by December 2009...I need to be realistic about this, and hopefully I can get this done...I'll let you know how it goes!