Credit cards and Vehicle PAID OFF!!!

[AnjieNet]

Whoo hoo! Just made a final payment ($1950.52) on my Jeep today leading to no vehicle loans or credit cards outstanding. What a relief it is to have all that debt gone. Now if only we'd come into a $98,000 windfall to pay off the mortgage... We are going to start making half payments this week and every 2 weeks to get that down a bit quicker too since DH has 3 pay periods this month. We'll see how it goes. I think I'm going to like not having a majority of one paycheck going to the mortgage at the beginning of the month. Hopefully this will help me budget a little better too.

 

[bettymae1121]

Yay! Our cars are paid off but still have CC debt. Still just not having car payments is a big help to us!

If I can make a suggestion, rather than paying down the mortgage faster, you should (if you haven't already) max out your retirement accounts and put money in a liquid emergency savings account (or if you already have a good emergency fund, start saving to replace your current vehicals, they won't last forever after all and if you're lucky, you can pay cash for your next one!). And if you have kids, start a college fund. I'd leave paying off the house to last.

If you've already done thoes things, then ignore me!

 

[4HppyCamprs]

Congrats!!! That is a wonderful feeling We just got rid of one car payment and feel heaps of relief from that Congrats again!

 

[elwise1966]

Grats! I made my last car payment this month as well.

 

[Kitzka]

Congrats! what a wonderful feeling and defintely something to celebrate!

Lara

 

[secretpantssam]

Congrats!

 

[beesly]

If I can make a suggestion, rather than paying down the mortgage faster, you should (if you haven't already) max out your retirement accounts and put money in a liquid emergency savings account (or if you already have a good emergency fund, start saving to replace your current vehicals, they won't last forever after all and if you're lucky, you can pay cash for your next one!). And if you have kids, start a college fund. I'd leave paying off the house to last.

Ditto this. Everything I've read/heard says that you will wind up with more in the long run by doing this, because you'll earn more interest on what you start saving now, than you would save by paying off your mortgage early and starting to save after it's paid off.

 

[piperdown]

Congrats!! I'm just a few weeks behind you. At the end of this month, I'll be making our last credit card debt payment. We've been working toward this goal for 4 years!! The 2nd car was paid off in March, so that's done.

We made a drastic lifestyle change a little over 4 years ago because the stress of all our debt was destroying our marriage.

We moved from the suburbs to a small town. Sold our 3000 sq ft, 5 year old, custom designed house, and rented DH's grandfather's 1700 sq ft, 30 year old home, after he moved to an assisted living facility. We cut up the credit cards, and lived cash/debit only. Our cars are now 8 years and 6 years old, but in good condition.

Because of the move, DH and I both changed jobs, and both took big pay cuts. But our jobs are much more stable; he's a 2nd career teacher, and I work for a nearby state university.

DH's grandfather passed away in January, and his parents very generously gave the house to us. We now own the home, and have no mortgage debt.

On the downside, DD goes to a much poorer performing school district. That is my only regret. Luckily, she's a very bright girl, and in some ways is getting opportunities that she would not have had in the better school district (big fish, little pond).

My 40th birthday present (in December) is that we'll be completely debt free, and it feels great!!

 

[AnjieNet]

Yay! Our cars are paid off but still have CC debt. Still just not having car payments is a big help to us!

If I can make a suggestion, rather than paying down the mortgage faster, you should (if you haven't already) max out your retirement accounts and put money in a liquid emergency savings account (or if you already have a good emergency fund, start saving to replace your current vehicals, they won't last forever after all and if you're lucky, you can pay cash for your next one!). And if you have kids, start a college fund. I'd leave paying off the house to last.

If you've already done thoes things, then ignore me!

Great suggestions. DH gets his annual benefit package renewal next month so I'll have to look and see where we stand regarding the retirement accounts. I know we contribute at least as much as the match on the 401k and contribute to the stock options as well but to what extent, I don't remember. I need to bone up on this apparently.

We do have an emergency savings (3 months salary) which we have used in the past and has been such a relief to have so we will continue to keep that where it is. We have another small savings account set up to dip into in the winter when our electric bill get astronomical. The even monthly billing at the utility company was a nightmare so we set up our own option. And we do have a very small amount set aside for car repairs as well. We do need to fund this one more as my DH's vehicle is getting up there and sadly, the Suburban won't last forever though it's been an excellent vehicle.

I'll get with DH this week so we can set up some new priorities together.

Thanks for all the happy notes!

 

[rszdtrvl]

Lucky Duck!!

Congrats!!

We have 1 credit card, and 2 trips to New York to pay off. And our mortgage.

I have a budget planned, so I am hoping that will help us a bit. If we can pay for the NY trips without touching the credit card, I will be ecstatic!

 

[disneysnowflake]

That is awesome!!!

 

[AnjieNet]

Congrats!! I'm just a few weeks behind you. At the end of this month, I'll be making our last credit card debt payment. We've been working toward this goal for 4 years!! The 2nd car was paid off in March, so that's done.

We made a drastic lifestyle change a little over 4 years ago because the stress of all our debt was destroying our marriage.

We moved from the suburbs to a small town. Sold our 3000 sq ft, 5 year old, custom designed house, and rented DH's grandfather's 1700 sq ft, 30 year old home, after he moved to an assisted living facility. We cut up the credit cards, and lived cash/debit only. Our cars are now 8 years and 6 years old, but in good condition.

Because of the move, DH and I both changed jobs, and both took big pay cuts. But our jobs are much more stable; he's a 2nd career teacher, and I work for a nearby state university.

DH's grandfather passed away in January, and his parents very generously gave the house to us. We now own the home, and have no mortgage debt.

On the downside, DD goes to a much poorer performing school district. That is my only regret. Luckily, she's a very bright girl, and in some ways is getting opportunities that she would not have had in the better school district (big fish, little pond).

My 40th birthday present (in December) is that we'll be completely debt free, and it feels great!!

Congrats to you too! What a change that must have been for you! We've had to adjust a bit as well and I know how hard it is. We went from having two nice incomes, spending liberally and saving a bit to having one income and a new baby on the way all in the same month and it was a shock. We've really had to adjust our way of thinking to make everything work with me now being a SAHM, but the expenses of childcare for an infant and before/after school for DD, gas, clothing to go back to work made it hardly justifiable in this economy. I'm still keeping a lookout for a job that would pay enough and that I would enjoy enough to go back to work. We'll see.

What an awesome birthday present! Being completely debt free is a dream I hope to achieve someday before I'm too old and grey. I do like my present though as well - my 40th birthday present (in November 2012) is a girl's trip to WDW with DD and my BFF. (and yes, the money is already in the bank! )

 

[bettymae1121]

Great suggestions. DH gets his annual benefit package renewal next month so I'll have to look and see where we stand regarding the retirement accounts. I know we contribute at least as much as the match on the 401k and contribute to the stock options as well but to what extent, I don't remember. I need to bone up on this apparently.

We do have an emergency savings (3 months salary) which we have used in the past and has been such a relief to have so we will continue to keep that where it is. We have another small savings account set up to dip into in the winter when our electric bill get astronomical. The even monthly billing at the utility company was a nightmare so we set up our own option. And we do have a very small amount set aside for car repairs as well. We do need to fund this one more as my DH's vehicle is getting up there and sadly, the Suburban won't last forever though it's been an excellent vehicle.

I'll get with DH this week so we can set up some new priorities together.

Thanks for all the happy notes!

What the experts suggest is that you fund your work 401k up to the amount you need to get the full company match, and then after that open up an IRA (Roth or regular, I suggest Roth but read up on both) and put the rest of your retirement savings there. Even a good 401k through your employer has way fewer options than an IRA that you control.

I'd also bump your emergency savings from 3 months to 12 months. In this economy cash is king, I think the average laid off person spends almost a year looking for a new job.

What DH and I plan to do is:

Pay off CC debt
Save 12 months expenses in liquid savings
Max out retirment
Save for children's college

Actually we will start a college fund when our baby is due next year, but only put in $50 a month or so, once our other goals are met we'll ramp it up. I want to start saving something, plus with an open account we can easily add birthday/christmas gift money to it. Also we are buying a car next year (my '98 saturn runs fine but i want better safety features with baby on the way) and will have a small 3 year loan on that. It should be paid off not long after we pay off the CC's. But that is the basic outline of our "plan".

 

[AnjieNet]

Lucky Duck!!

Congrats!!

We have 1 credit card, and 2 trips to New York to pay off. And our mortgage.

I have a budget planned, so I am hoping that will help us a bit. If we can pay for the NY trips without touching the credit card, I will be ecstatic!

This has been a big thing for us. We've passed on numerous travel opportunities because we just didn't have the funds set aside for them. We love to travel and had in the past pretty much whenever we got the whim but we've decided that if we don't have the funds to set aside for it and can't pay it in cash, then we don't go. And oh, how I've missed going. BTW - we still use the credit card (usually Discover for the cash back) for certain items but it's paid via online banking as soon as the charge hits.

I'm horrible at budgeting and sticking to it but I am getting better. It's definitely been a learning process. Good luck with your plans!

 

[indimom]

Congratulations!!!

 

[2disneyboys]

Congrats!!! We paid off all our debt (except our house) earlier this year and your right -- it feels fabulous! We are in the process of beefing up the savings accounts and getting comfortable w/ higher payments to our "retirement" accounts, and then we hope to funnel the extra towards paying off our mortgage early. We'd love to say we are completely debt free by the time we are 40 (4 years away!)

 

[AnjieNet]

What the experts suggest is that you fund your work 401k up to the amount you need to get the full company match, and then after that open up an IRA (Roth or regular, I suggest Roth but read up on both) and put the rest of your retirement savings there. Even a good 401k through your employer has way fewer options than an IRA that you control.

I'd also bump your emergency savings from 3 months to 12 months. In this economy cash is king, I think the average laid off person spends almost a year looking for a new job.

What DH and I plan to do is:

Pay off CC debt
Save 12 months expenses in liquid savings
Max out retirment
Save for children's college

Actually we will start a college fund when our baby is due next year, but only put in $50 a month or so, once our other goals are met we'll ramp it up. I want to start saving something, plus with an open account we can easily add birthday/christmas gift money to it. Also we are buying a car next year (my '98 saturn runs fine but i want better safety features with baby on the way) and will have a small 3 year loan on that. It should be paid off not long after we pay off the CC's. But that is the basic outline of our "plan".

Congrats on the baby and thanks for your helpful advice! We've started a college saving for the kiddos at $25 per week automatically going into a savings. Once a year we throw it into a CD (used to get 5% but now doing good to get 1% but we aren't losing it either). We considered setting up the 529 College Plan but decided against it at this time. At the way it stands, these CD's can be used as emergency funds if need be; DH has a stable position as far as we know but unfortunately things can change. As our savings (hopefully!) grows, we will revisit this.

I think DH gets a complimentary financial adviser with Merrill Lynch as part of his work benefits. May be worth setting up an appointment with one just to see what they have to offer in assistance...

 

[eyor44]

Congratulations! I always enjoy reading these happy posts.

 

[AnjieNet]

Congrats!!! We paid off all our debt (except our house) earlier this year and your right -- it feels fabulous! We are in the process of beefing up the savings accounts and getting comfortable w/ higher payments to our "retirement" accounts, and then we hope to funnel the extra towards paying off our mortgage early. We'd love to say we are completely debt free by the time we are 40 (4 years away!)

Thank you and congrats to you too! Good luck on being debt free by 40! I wish I could join you. Maybe if we eat nothing but Ramon noodles for two years...nope, I don't think that'd even do it!