Debt free!!!!!

[diznee25]

OP: Way to go!

We're in the middle of paying off our credit card debt. The plan is to have that gone by the end of 2012.....we're working pretty hard to make that a reality.


diznee25

 

[Mary•Poppins]

Congrats!

 

[KandiB47]

Aside from my house and car, I am officially debt free!

Congrats on being credit card debt free! Is the car next?

 

[Minnie_me]

Congrats on being credit card debt free! Is the car next?

I wish, but no. I still have a year to pay on the car, and will probably be trading it in this summer.

 

[Tink-n-MrIncredible]

Way to go Minnie Me. I am so proud of you it takes a lot of work. The trick is now not to put purchases back on the card.

 

[ilovemk76]

 

[Minnie_me]

The trick is now not to put purchases back on the card.

Yes, this is indeed the trick now! I've been living without using credit cards for 18 months now, though (except dept store cards, which I pay off each month), so I think I can do it. I got rid of each of the other "big" cards as I paid them off, but this is a bank card, and I'm going to keep it. I'm telling myself that it is to be used only for emergencies. Car repairs, home repairs......things that can't wait for me to save to pay for.

I'm hoping I can do this!!!!

 

[DawnM]

Can I ask why? We keep our cars forever and hope to never have another car payment. Is there something wrong with it?

I wish, but no. I still have a year to pay on the car, and will probably be trading it in this summer.

 

[scottmel]

Yeah for you! It is an awesome feeling!! We did a 30 year morgage in 10 years!!!! And are debt free and cash only on cars. It is a fantastic feeling. My dad always said "Live like no one else today so you can live like no one else tomorrow". No truer words ever spoken.... What did we do to celebrate being debt free? Week long stay at BWI CL of course. Same as we have done every year since...great feeling!

 

[arthur06]

Can I ask why? We keep our cars forever and hope to never have another car payment. Is there something wrong with it?

I am not the OP, but we have a car payment. The reason we did ours was we have 3 boys, so we wanted 3rd row seating. Also, I just got a new job that had a company car. We had 2 (paid off) SUV's that we didn't need. So we traded both, for a mini van that works better for our family.

Now we only license one car per year, pay insurance for one car per year. We seem to only put about 200-400 miles per month on our van, so it should be good for a LONG while.

 

[Minnie_me]

Can I ask why? We keep our cars forever and hope to never have another car payment. Is there something wrong with it?

It's a small SUV (Mercury Mariner) and I really want something even smaller that gets better gas mileage. I owe less than what my car is worth, so I'm going to try to sell it on my own this summer, pay that loan off, and start from scratch. Right now, my car payment is $456 a month.............I'm pretty sure I can get it under $300.

 

[nellyru]

Congrats!!

We are in the midst of becoming debt free. Who knows how long it will take.

But we should be paying of our car next payment!!

Yeah!!!

 

[mrodgers]

It's a small SUV (Mercury Mariner) and I really want something even smaller that gets better gas mileage. I owe less than what my car is worth, so I'm going to try to sell it on my own this summer, pay that loan off, and start from scratch. Right now, my car payment is $456 a month.............I'm pretty sure I can get it under $300.

How on earth did you get a payment on a Mercury Mariner for $456? We have a Mazda Tribute S fully loaded and payment is $340 bought new.

I can see why one would want to get rid of a Mariner/Tribute/Escape though. They are pieces of garbage. We still have a year left as well and I want to get rid of it. Costing my wife a fortune in gas to go to her part time work. Never again will I think, "I'll buy a new American because of having a warranty over a used Japanese." I've got more in repair bills on this one Ford with 78,000 miles than I've ever had in 5 used Japanese all with close to 200,000 miles.

 

[Minnie_me]

How on earth did you get a payment on a Mercury Mariner for $456? We have a Mazda Tribute S fully loaded and payment is $340 bought new.

I honestly don't know. It's the Premier Edition, fully loaded (heated leather seats, 6-CD player, MP3 hookup, etc.). But I was married when we bought it, and my (now ex) husband was TERRIBLE with money. I believe that we had been upside down on the previous car's loan.......that might have had something to do with it?

 

[bumbershoot]

I'm telling myself that it is to be used only for emergencies. Car repairs, home repairs......things that can't wait for me to save to pay for.

I'm hoping I can do this!!!!

You might look into creating an emergency fund, and also maybe put some money aside each month to fund home and car repairs (in Ramsey-world the repair fund would be called a "sinking fund"). That way you would have a chunk of money just in case something breaks, AND still have a true emergency fund.

 

[Minnie_me]

You might look into creating an emergency fund, and also maybe put some money aside each month to fund home and car repairs (in Ramsey-world the repair fund would be called a "sinking fund"). That way you would have a chunk of money just in case something breaks, AND still have a true emergency fund.

I like that idea --- I have 3 savings accounts right now: Christmas club, vacation savings (which I just started, so it's low - lol!) and regular savings that I use for routine household expenses (we just moved into this 100-yr old house after the divorce, and there's always work to be done!).

How much $$ does Ramsey recommend having in an "emergency fund"?

 

[jacqueline'smom]

I like that idea --- I have 3 savings accounts right now: Christmas club, vacation savings (which I just started, so it's low - lol!) and regular savings that I use for routine household expenses (we just moved into this 100-yr old house after the divorce, and there's always work to be done!).

How much $$ does Ramsey recommend having in an "emergency fund"?

3 to six months expenses....i am pretty sure....
We have house and small student loan left and we will be debt free!!!! We paid off the truck early last month!!!! It feels soooooo good!!!!!

 

[NaLisa]

Congrats to OP. Enjoy having that debt behind you!

 

[TammyNC]

That is awesome!! Congrats!!

 

[seashoreCM]

Before you trade in that gas guzzler for a new hybrid or fuel efficient car ...

1. How much more will the insurance be given that your next car is new?
2. Does your city or state have an excise tax or personal property tax or town fee that is higher for newer cars?
3. How much sales tax do you need to pay?
4. What are the monthly payments, given that monthly payments will be coming to an end soon for your present car?
5. How much more will your heart be broken if the car got smashed or scratched? (... priceless?)