Debt-free!

[MommaMoo]

It was scary and I didn't want to do it. Until this morning we had $2,000 in cc debt. We don't have car or student loans, so that cc debt was it. We also had $4600 in savings, which I was LOATHE to deplete. We were recently *very* excited to discover that home prices were down to a level we could afford. There are 3 different down payment programs we qualify for (state, local, and FHA's Neighborhood Gold program), and our mortgage on a house would be lower than what we pay for our little apartment. I am aiming to have $10,000 in savings before we buy a house, so I tried to talk myself out of paying off that cc debt. The problem is that it kept getting bigger. Our cell bill of $130 was charged to it every month and I wasn't paying it in full. Now the bill is on our debit card, so that is another increased monthly expense. Yes, the $130 is high. DH has a Blackberry, which he loves and will not give up He's a techie guy. I calculated that we could put at least $300 in savings every month, and probably closer to $500.
I know it's best to be debt-free before buying a house. Still, if I weren't pregnant I'd be having a very stiff drink tonight!

[its_betty]

Congratulations! We are CC debt free (paid off a big debt a few years ago) and about to pay off dh's car loan, and then save that monthly payment so we can pay cash for my next car in a few years. It's a good feeling!

I also want to buy a house... once we get some more savings. How did you find out about all the down payment programs you qualify for?

[laohaire]

Congratulations!

We had to think long and hard before paying off our car in a lump sum (we were paying it on an accelerated rate, but we still would have had a year left I think). Several factors led us to choose to dip waayy into our savings (plus we used the tax return) and just pay off the note. In our case, we haven't regretted it for a moment

[MommaMoo]

Originally Posted by its_betty

Congratulations! We are CC debt free (paid off a big debt a few years ago) and about to pay off dh's car loan, and then save that monthly payment so we can pay cash for my next car in a few years. It's a good feeling!

I also want to buy a house... once we get some more savings. How did you find out about all the down payment programs you qualify for?

Thanks! I found out about the down payment programs through lots of research! Our city has a program that a lot of cities have. It's the American Dream Down Payment initiative. If you meet certain income requirements you get $10,000 to put towards the down payment. It's not a grant, but a silent loan (is that what it's called?) that doesn't have to be paid back until the house is sold. The FHA has a program called Neighborhood Gold that will grant you 3-10% of the price of the house, but it's contingent on the cooperation of the seller. They don't pay the whole thing, but they have to contribute to a fund or something. I keep reading and hearing that sellers usually don't have a problem with doing that. Neighborhood Gold will also pay your mortgage for a year if you lose your job, which is my favorite part! Also, we live in CA, which will pay 3% of the value of the house (basically the closing costs) for first time buyers. I realize that our buying a home is dependent on many things coming together, but it's worth a shot, and we won't do it if it's too risky.

[MommaMoo]

Originally Posted by laohaire

Congratulations!

We had to think long and hard before paying off our car in a lump sum (we were paying it on an accelerated rate, but we still would have had a year left I think). Several factors led us to choose to dip waayy into our savings (plus we used the tax return) and just pay off the note. In our case, we haven't regretted it for a moment

It's so tempting to just keep your savings high! But it's also nice to not rack up interest and to have fewer monthly bills. It's a trade-off for sure, and I'm glad to hear you didn't regret it!

[EdnaMarie]

CONGRATULATIONS!

We count every penny of credit card debt against our savings. We keep only a general total, not separate tallies of debts and assets. So for us it's a no-brainer to pay off that credit card every month. You did the right thing.

[tinuviel_k]

Congratulations!

[Ruthiegirl]

Hooray!

[MommaMoo]

Thanks, everyone! I knew that I'd get support from all the smart and thrifty mamas around here!