Hi all--
Been mainly lurking for a while after reading MANY MMM posts. While I don't want to post a full case study at this time (they remind me of those dreams when you are at school and suddenly realize you are naked), I would like a little help from the MMM community re: coming to terms with my cc balances. As you may be able to tell, I am desperately hoping to avoid face punches and hair on fire sermons, but will read and respond to all suggestions. Seeking approval from complete strangers---maybe that should be my journal title!
DH and I are 50 and 51, with a FIRE plan for 55. We are teachers, and will have small (mine) and bigger (his) pensions at 55--possibly soc security but not factoring it in. We have 500K in 457s and 403(b)s. Our only debt besides the ccs is our primary mortgage (167K) and a 40K mortgage on a beach condo which is a rental and personal use property. We are maxing out our 457s with the catch up provision.
As of now, we also have 17K in balances on 0% credit cards. The majority of the debt (14K) is the result of a lawsuit in which we are the plaintiffs. The lawsuit involves our condo and our ability to use/rent it. If/when we prevail, we will have more rental opportunities, increasing our income and the value of the condo. However, the lawsuit isn't over, and that balance will go up if we have to go to trial. Another 3K of the balance is for DD's LAST semester of college--just paid it this week! Whew! Done and no additional debt for us--and only a little for her.
I keep trying to convince myself that the debt is no big deal, it's interest free, and that it is far better to continue maxing retirement contributions than to cut those back in order to pay down the debt more quickly. We have made lifestyle changes as well, and are still working on paring down our monthly budget in order to throw more at the debt (restaurants/groceries were horrible). We also throw extra money at the debt whenever we get it--teaching summer school, rental income, etc.
As I type this, I am queasy as I anticipate face punches. Of course it's a big deal! It takes up space in my head, and affects our ability to fund other investments. If we REALLY cut back, we could pay it off in no time. However, we also have a teensy weensy addiction to travel, including an annual visit with the Mouse...there, I said it. The travel is not part of the debt, though--promise.
Anyway, does anyone want to talk me off the ledge? Or push me over it? Have at it, and thanks!