Thursday, July 12, 2007

As Emeril says.... "Bam!"

Bam!

Took Dave's advice and we were able to make a huge payment on the debt!

When we read The Total Money Makeover Dave recommended that if you are in debt, take your savings (except for a $1000 baby emergency fund and your 401K) and use that to put down on your debt.

Makes sense right?

Let's say you have $5000 in debt you are paying interest on, but you have $5000 in savings. It's makes more sense to take your savings and pay down your debt, instead of paying that credit card or loan interest every month.

So after much thought (and stress) we exercised some options and were able to pay off quite a bit of debt.

Still have $40k in debt left, but at least the amount is getting lower right?

Next on the chopping block?


Getting rid of one of the car loans....

2 comments:

SavingDiva said...

Great job paying off a large chunk of debt! You're under $50k, that has to feel good...use that momentum to keep on going! GOOD LUCK!

Mom of 3 said...

Thanks for the encouragement! (I got the new Pottery Barn catalog in the mail today, so I need it ha ha!) But I'm being good. Taking a quick peek to see if there are ideas (that I can copy for free) and then it's going straight in the recycling bin.