I do so love when a plan comes together. I decided to start stemming the tide of money hemorrhaging from our wallets, and I’m already having some good luck. I am currently refinancing the van to a lower interest rate, I told you that. I have liquidated the kids’ college funds, so we’ll be getting that money shortly. I have an overpayment coming from the school I was in, and that’s a significant chunk of change that we paid out of pocket. And, I will do our taxes soon and we should get chunk of change in refund form. That’ll help pay the credit card down to more manageable levels. Not only that, but my sister-in-law, who works at the bank that’s doing our vehicle refinancing told me about a 6 month balance transfer promotion that then converts to a low fixed rate. Our current card has the same rate but it’s variable.
Things are looking up from just earlier this week when the budget seemed to be spiraling out of control. I got it in order and now I will actually be paying off the credit card instead of just fighting a holding action. The car loan is still looming, and the payments may well go up the way our refinancing is being structured, but it’ll be less money overall that we end up paying back over the life of the loan. Once the credit card is taken care of, it will be the car loan’s turn. All of the money that was going to the credit card plus any “found money” and tax return type things, will go to that and we’ll pay it off early as well.
We’ll get debt-free again. We have more to pay off this time, but we’ll get there. Right now we aren’t sacrificing too much. I’d like to keep our standard of living close to where it has been, and I can do that still. As we get closer to getting things paid off I might want to tighten the belts a bit more to get it paid off that much sooner, but for now, we are doing well and will still be able to pay everything off before we die. We’ll be out of debt except whatever house we end up in, in under 5 years. Hopefully significantly under 5 years. I’d like to do it in 3, but that’s a tall order. Especially since we’ll be moving during that period.
If I get a job we’ll probably stay in this house another year. We’ll be better able to afford to send the kids to Montessori for another year, and that’s ideal. It will give us a chance to pay down our debt before we move as well. This house has been good to us and none of us wants to leave it, but the kids need to be in a better school district when they get out of Montessori. We have the ability to move anywhere in the area so we want to move to the best school district. That means a higher house payment though; good school districts don’t come cheap. As always, we’ll figure it out though. Between us, Hubby and I can swing an awful lot.