I'm joining the crowd here too! I have 2 small CC's which I pay off monthly, if I even use them at all - DD's trombone rental goes on one and I budget a little from each paycheck to pay them off.
Our real debt is from 3 bills:
1. Line of credit - down to owing $2700 from original balance of $6500 - this is the one I want to target first
2. Car loan - $15,000 - bought a new to us car about a year ago - seeing the interest makes me sick to my stomach, so this is task #2 - I already make a half-payment each payday (bi-weekly) and round up, so I pay about $50 extra per month and 1 extra payment per year, but it isn't knocking down the principle the way I want it to.
3. Student loans - a disgusting amount (really, a mortgage sized amount) - I knew going back to school would be expensive but worth it, and I was right on both accounts. They are on a 10 year repayment right now, which isn't terrible, but I'd like to knock them out in about 5.
I think my problem is that I see my paycheck and always feel like I should at least pay a little extra to each place, rather than really focusing my energy on getting rid of one. Or I will remember to focus for a month or two, then slip back. I almost always feel like I should be saving more, even though I do contribute 6% to 401k (the max my employer matches) and also put something into savings each paycheck.
In addition to going after these debts, we want to start saving in earnest for a house - we'd like to start construction in 2-3 years (land is owned free and clear). We also continue to vacation - I build it into our budget and we do not accrue any new debt in doing so.
In the shorter term, we have a doctor bill from December ($200) due at the end of January and I told DSS that we would buy him tires (which he desperately needs) as part of his Christmas present...I didn't realize it would be almost $700! So, that will come out of my next check too. Thankfully January is a 3 paycheck month for me. I will also owe the tax man come April - likely around $1000 all-in, so I'm trying to get that set aside now. I adjusted my withholdings late last year, but it was too little, too late. This is the first year ever when I haven't gotten a tax refund. I'm a little sad, but also a little happy because it means that financially we are doing better than we ever have before.
My current debt attack plan is to scale back to minimum payments on student loan (currently I'm paying about twice the minimum bi-weekly), knock out that line of credit in the next 2 months, then go after the car with gusto. I'd like to have the car paid off by this time next year, so wish me luck!
I do hope something miraculous happens by the end of the month so I don't start the year behind! I'm so happy for all of you that are getting things paid off and paying everything down! Did I mention that I am also doing the 52 week savings plan that someone suggested, so far $6, yay!
