Author Topic: How to tackle debt?****Updated 3/31/16  (Read 10385 times)

NoStacheOhio

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Re: How to tackle debt?****Updated 3/31/16
« Reply #50 on: April 01, 2016, 06:25:47 AM »
We didn't add any to our emergency fund yet - we are keeping the remainder in our money market account until the remaining bills come in.  Once that happens, and we pay them off, we will move the remaining funds as needed, between our emergency fund and the other student loan debt.

With the 6.55% paid off, our student loan bill each month will be $189.xx, which saves us $375 a month in payments versus what it was increasing too eff 4/28/16 withdrawal.  The reason we didn't use the whole check right away is because we are waiting on those other bills previously mentioned, and with kid #2 due just a month or so out, we figured we had better play it safe.


IMHO this makes a lot of sense, and is probably a good, safe choice. It feels great to knock out a debt completely. Practically speaking, if it means you're short cash the next month, it doesn't help. Taking a few months to pay stuff off and waiting for a complete picture on bills and any unexpected costs is a good thing.

TheInsuranceMan

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Re: How to tackle debt?****Updated 3/31/16
« Reply #51 on: April 01, 2016, 08:43:22 AM »
First, we paid of $29k and change, or whatever the total of my 6.55% student loan debt was.
We paid off my truck loan
We paid off some credit card debt that had been accruing due to this move and updating the house
We will write a check for $4,100 to one of our contractor's - still waiting on 3 other bills (electrician, flooring, and countertops)

We didn't add any to our emergency fund yet - we are keeping the remainder in our money market account until the remaining bills come in.  Once that happens, and we pay them off, we will move the remaining funds as needed, between our emergency fund and the other student loan debt.

Hey, that's great!  And I personally think it's wise that you're leaving the balance in your money market account until the contractors' bills are all paid.  Then you'll be in the best position to soundly decide how much to apply towards e-fund versus student loans.

As a funny aside, only with your most recent update did I realize that this baby will be your second child, as I mistakenly interpreted your original post -- "family of 3, 4th due in May" -- to mean that your fourth child was on the way, LOL!

The thought of 3, going on 4 kids is enough to make me panic!  So yes, we are a FAMILY of 3, with our 2nd child on the way, to make us a family of 4 (5, if you count our dog!). 

Slow and steady wins the race, right?
Oh, and I upped my 401k contributions to 10% before all of this happened, which will take effect in my April pay check (along with a nice commission check as well).

TheInsuranceMan

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Re: How to tackle debt?****Updated 3/31/16
« Reply #52 on: April 01, 2016, 08:45:35 AM »
We didn't add any to our emergency fund yet - we are keeping the remainder in our money market account until the remaining bills come in.  Once that happens, and we pay them off, we will move the remaining funds as needed, between our emergency fund and the other student loan debt.

With the 6.55% paid off, our student loan bill each month will be $189.xx, which saves us $375 a month in payments versus what it was increasing too eff 4/28/16 withdrawal.  The reason we didn't use the whole check right away is because we are waiting on those other bills previously mentioned, and with kid #2 due just a month or so out, we figured we had better play it safe.


IMHO this makes a lot of sense, and is probably a good, safe choice. It feels great to knock out a debt completely. Practically speaking, if it means you're short cash the next month, it doesn't help. Taking a few months to pay stuff off and waiting for a complete picture on bills and any unexpected costs is a good thing.

Yep, that's our plan.  Too many times have I figured we could pay off a ton of debt, and just leave ourselves too strapped for the following month, which resulted in credit card purchases (we were a one income family, with a brand new baby, for many months).  Never again.

That student loan payment will come out today, as will the credit card payment.  I'm hoping to be able to pay more than the student loan minimum once the payoff goes through.  The reason I say "hoping", is because for my wife's maternity leave, she gets to use her PTO. than 5 weeks of 60% disability, and then the rest is unpaid.  So, I'm going to stock as much away between now and then as possible, to make sure we don't get ourselves in trouble (which we shouldn't, as our bills are next to nil).