I’ve been looking at our finances very closely lately. I feel confident that we can have our credit card debt gone in about 5 years if we stick to a plan. I’ve made a spreadsheet with all of our bills. Our monthly payments are under what we bring home…which is a good thing. 🙂 I’ve got some money set aside for emergencies, property taxes and hay for our critters. Now where do I go from here? I am currently paying more than the minimum on all our credit card debts. What gets me is the amount of money we pay out in interest alone. Wow. It’s saddening & sickening all at the same time. Why didn’t anyone warn us about the dangers of “credit”? I think it should be a mandatory class in school. Would love to hear any advice from you financial gurus out there on how to proceed. My plan for now is to try to be very careful in our spending & snowflake everything I can, on top of making above min. pmts. I really think the worst part is patience for it all to “pay off”. Ugh. 5 years seems like a long time, but on the other hand, I’ve been deep in debt for way longer.
Another topic I’ve battled with lately is getting a 2nd vehicle. We currently just have our truck. A family member has offered us her 2005 suzuki xl7 for just what she owes. That makes it less than half of it’s resell value & it only has 53,000 miles. In this decision I’m torn. We really should have a 2nd vehicle in case the truck breaks down. It will increase insurance to have a 2nd vehicle. getting this would extend the life of the truck because it wouldn’t have to be our main vehicle. We have 3 years left on our truck before it’s paid off. At this point even though it’s a “large” purchase, I think we’re leaning towards purchasing it. We would like to pay half of it in cash & borrow the other half from our 401K & pay it off next year with our tax returns. I can get lower interest borrowing from 401k vs. a bank loan. Between the 2 vehicles we should be able to make do until we pay off the truck & trade in for another one. I hope we’re making the right choice, but feel free to send me ideas. If the vehicle weren’t such a great deal, I wouldn’t even consider it.