Deciding to get out of debt...

[Cativari]

In the next year I have commited myself to getting us out of debt. Call it an early New years resolution if you want. I have come upon this decision because I'm tired of owing banks and making monthly payments. I want to be free. My payments/debts are:

House $70,700; $610/mo

Vehicles (a car and van two seperate loans) $29,000; $440/mo and $340/mo

Loan (we used it for DH to get crane training)- $9,700; 300/mo

School loan-$4,000; 75/mo

Credit card-$3000; 100/mo

For a total of $116,400

We have about $1200 to $1500 over what we need a month (more when DH works 60 hours a week) now that DH has settled into his new position so I know we can do it.

I have come up with a game plan. I'll start by saving enough to move again and then it's a combination of lower balances vs interest rates (ie the loan and cars will be payed off before the school loan because it has a very low interest rate) So the CC is first to go and that will take me about 2-3 months. In 2 years or so I should have everything but our house paid off but that will prolly be sold or at least put on the market when the economy bounces back a little as we're prolly not be living there again (DH job moves us too much). Anyway once I get one thing paid off I'll use the money I was sending out for that bill to pay on the next and so on.

What do you ladies think? Any tips to keep motivated are welcome.

TIA

[Kavita]

Sounds like you might like joining us in the "Dumping Debt and Building Wealth with Dave Ramsey" thread, since it sounds like basically more or less what you're doing.

[mtm]

Your plan sounds good! If you like Dave Ramsey line up your debts smallest to largest and throw all extra money at the smallest one. If you like the other debt lady, line up your debts and start paying off the highest interest one. 1200 is a great amount to start snowballing your debt.

[Denvergirlie]

That's just how we did it. Dave Ramsey's snowball method.

However, like DR method you might want to consider an emergency fund retirement savings be addressed before jumping onto the house pay down.

Getting rid of those credit cards, car loans and student loans will be great no matter how you do it.

Good luck

[Seasons]

Just a Q - that's a nice low mortgage balance! Why are you planning to move?

Good luck! Sounds like you are on track!

[Jenelle]

http://www.whatsthecost.com/snowball.aspx

This may come in handy... I LOVE IT!

Good luck!

[Cativari]

Originally Posted by Seasons

Just a Q - that's a nice low mortgage balance! Why are you planning to move?

Good luck! Sounds like you are on track!

Dh is in industrial construction and we move every 4-12 months on average and we don't know if we'll ever use the house again.

[Jenelle]

Originally Posted by Cativari

Dh is in industrial construction and we move every 4-12 months on average and we don't know if we'll ever use the house again.

I am confused about why you would ever buy a home? I mean, how does this make sense for you financially? How do you ever get ahead?

[Cativari]

Dh wanted a house to live in if anything were to happen to his job and for when the kids get bigger and go to school. But now that I'm thinking homeschooling (not decided yet) at least for a few years it just seems less practical now.

[excitedtobeamom]

You sound very motivated! You can do it! I really recommend the book the Total Money Makeover and if you like that join the board www.llnoe.com for TONS of support in the process! You can do it!