Debt

Money is a hard thing to deal with. It seems there are so many emotions attached to money. I used to be really bad with money and my credit was in the trash. I have pulled myself out of that, have reestablished good credit and own a home.

I want to completely pay my debt off.

My hubby and I both have the same goals of not only being debt free (including our home) but to quit our jobs and travel and simplify our lives. We are both in our late thirties and my hubby's kids will graduate from high school within the next six years.

First of all, my hubby and I have debt of $31,950.09. This does not include our interest only mortgage which we chose because we knew the condo we bought we would only be living in for two years. We live in the greater Seattle area and housing is astronomical! This really was the only way for us to get in to the housing market. We need to move not because we want to trade up but because we live in a two bedroom condo and my hubby's kids have to share a bedroom when they are here. That would be fine if they were of the same sex.........yeah not so much fun for them.

Our debt breaks down to the following...

• $1,380.04 credit cards
• $8,141.93 car loan
• $5,429.19 hubby student loan
• $16,998.93 personal loan
  

I have worked and reworked a budget (and will probably rework it again) and have been pretty aggressive in finding ways to throw as much money as possible at our debt.

• Reduced our monthly cable/internet and cell phone bills
• Committed to only going to Starbucks twice a week (sounds a little crazy but giving that daily treat up completely will take time)
• "Found" extra money from our paychecks to redirect towards debt.
• Tax incentive check that should be coming any day.

We do have some things that have to be done that can't be helped.

• Home improvement projects that need to be completed before we can move spring 09.
• Dental bills/visits that will take away from extra debt reduction.
  

If we can stick to a pretty aggressive debt reduction plan we can have our car paid off in twelve months. Just in time to sell our condo and move. We are only doing that because we REALLY need three bedrooms. If we could stay at our condo we would.

This does not include savings and any sort of unknown expense we may come up against. Both my hubby and I have been contributing to our 401(k)s (mine was just started so is small) and at the moment I don't know how much those are at.

Stay tuned!