Life is Grand!!!

Wednesday, June 21, 2006

Out Of Debt!

We had a wonderful meeting the finance guy last night. He told us that we could be out of debt in 2.3 years without changing our budget and without making any more money!!! He shared with my hubby and I how the plan worked and we are already making the first steps. We will be getting new checking account at a bank that we currently don't do business with and my hubby is changing how much tax money will be taken out of his paycheck. The extra money from his paycheck will be put into the new account. We will also be putting in the money that we normally use to round up our credit card and vehicles payments into the account. So each month we will be depositing about $500 dollars into this new bank account. We are allowed to write one check a month using the new account...and for the first few months it will go toward my hubby's truck payment (it will be added into his normal monthly truck bill). We will also be transferring our two credit cards into a 0% finance charge credit card that we shouldn't have to pay on for at least 6 months. The money that we would normally be paying on our credit cards will also now go into the new account. So, with all that extra money being put into the new account (about $700 total a month), we will be able to pay off the truck in 7 months. Then we will work on paying off my car...which should take another 10 months. We will be putting the truck and car monthly payment amounts into the new account after paying each one off. It will just add to our new monthly account total that will be used to pay off the credit card and school loan (they will be paid off about 11 months after my car since over $1000 will be deposited in the new account each month).

Make sense?

The finance guy told us that when you get a raise, that it turns into the money you rely on instead of it being extra money a month. So now when my hubby gets a raise or a bonus, the money will be put into the new account. Also any extra money we get a month will be put into this account as well...like tax returns, overtime pay, and side job earnings.

It's kind of hard to explain, but my hubby and I are very excited about being debt free in a few years!

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Blogger Faith in Florida said...

I know what a huge relief that is!!

June 21, 2006 10:41 AM

 
Blogger Princess21 said...

That is great news!!!!!!

June 21, 2006 10:53 AM

 
Blogger Guru said...

That is a very good plan. It is similar to the one that Jordan Goodman always proposes when he is on radio talk shows.

It certainly is exciting and gets you in a position of financial power in such a short time!

June 21, 2006 11:02 AM

 
Blogger Oh great One said...

Sounds like a plan! I'm glad you got it figured out. Each time you pay something off it will be more incentive to take the next step. Good for you.

June 21, 2006 11:12 AM

 
Blogger Jean-Luc Picard said...

That sounds really good, Trin!

June 21, 2006 3:43 PM

 
Blogger Becky said...

That will be a huge relief for you, and kudos to you for being proactive about it.

June 21, 2006 11:25 PM

 
Blogger deputyswife said...

Sounds like a great plan!

June 22, 2006 7:59 AM

 
Blogger DayByDay4-2Day said...

Now only to stick to your guns on it!

June 22, 2006 9:07 AM

 
Blogger The Great and Powerful Oz said...

xlrhsqThat's odd...I saw nothing on how to purchase a motorcycle on this post...

How can that be???

June 22, 2006 8:32 PM

 
Blogger Trinity13 said...

It was a wonderful experience everyone...I would def recommend it!

And G will be getting his bike soon Oz!

June 28, 2006 10:10 AM

 

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