Working on 4 debts
My husband retired and got another job so we are getting 2 paychecks for him. Our goal was to pay off our house with his retirement money. We bought a Honda Civic and only financed it til we got enough of his retirement money to pay in full, this purchase was to save on gas. He has a Jeep Wrangler and only gets 18-20 mpg and the civic is getting us 36-40 so a big win there. We will have the money to pay that off in December so we will only make 2 payments on it which will be around $70 interest total ($173 extra available)
February we will pay off a loan to my parents ($473 extra available)
We are currently saving for a cruise to Alaska next July, the extra money from the 2 paid off loans will help fund that vacation. We also paid off his Jeep in June which saved us $530 a month (we were paying extra on it the entire loan) This money is part of the savings toward vacation.
Once vacation is paid, all of the extra money will be saved to use toward paying off my Renegade. (owe around $20k) We are saving it until we have enough in case we have anything else come up unexpected that we don't have enough budgeted for, so in a sense, we will have extra for our categories but just in one fund. Once my Renegade is paid off, everything will go toward paying off the house! (approx extra per month fro paying off debt $1436 plus my husbands retirement). I know we will have a bit to go but I am getting so excited to get rid of these bills. We will also use whatever we get from our tax returns.
Just wanted to share my excitement. I think it is a good plan, thoughts?
This sounds like an AWESOME plan! I'm super excited for you. I love that you recognize the increased cash flow you'll get with each debt payoff. That's where the power is, plus the emotional oomph you get from getting one of those debts out of your life.
If you need some motivation or some ideas along the way, you might try our Aggressive Debt Pay Down workshop. I taught for the past year (and still do some), and I found a lot of folks came back to that workshop just to get an extra dose of motivation. www.ynab.com/classes