I’m on track to pay off 7 bills by the end of 2007. That will free up $545 per month that will be applied to either the car or to the one CC we use for everything (read that as a big balance). We have a Christmas Club account through the credit union so Christmas is covered. I’m thinking of applying the extra $545 to the car. That would be like making an extra payment every month. I would have the car paid off by August 2008.
We aren’t planning a cruise or big vacation for next year so there’s no big vacation expenses coming up. The in-laws can’t afford to do one either. With our car paid off in August I’d then have $1100 per month to apply to that last CC. I should have that paid off by May or June of 2009. It’s amazing how the payments snowball and pay things off quicker. The thing is I have to stick with the plan. No new toys between now and July 2009. With the freed up $1500 a month I can apply that to the house. That means my house could be paid off in 2016 …. and that’s not counting raises other income.
I knew this would be hard and things would be tight but I’m starting to see the payoff. It’s like the weight loss thing. It’s slow and small to start. And as time goes on it snowballs. Next thing you know, bam! You’re there!
Now what’s not counted in there is household repairs, car repairs, etc … God has blessed us so far this year and other than my hernia there have been no major expenses. I am thankful for that! I am praying that things continue as they are and we can get through the next 12 months with nothing major coming up. I do know that I need new tires. And I think I can get by on the ones I have until the fall … I’m saving the money Wife’s grandma pays me for cutting her lawn. I should have enough by then to get new tires.