Woohoo!

Two credits we were waiting to be applied have hit our credit cards. That reduces our debt by $200 and combined with the $1800 we plan on putting on debt this month takes it up to $2000 in debt reduction. I'm really hoping by snowflaking we can up that even more.

The $1000 CD we have will be cashed out after it matures on the 12th. It's going to savings temporarily until we know...

• a) how much our tax return will be
  
• b) how much it will cost to get our Subaru fixed

Anything we have left over after the Subaru expense will go towards debt. I also need to buy new tires for my car. I still have $190 of the $286 I got from the cashed out stock. So, that will be used towards new tires.

I will also have two cards paid off this month. Granted one of them did not have a balance on it until just before Christmas. I used it and will pay it off this Friday before interest hits.

It's still going to take us over two years to pay off all our consumer debt. I have started thinking well in advance what we will do when we don't have all that debt to pay off. The first thing I want to do is set up an emergency fund. Three months living expenses mandatory but really I would feel more comfortable with at least six months living expenses.

After we get three months living expenses saved I want to save money in a travel fund. I think $5000 is a decent start for that. Starting 2010 (if possible) or 2011 I want to take at least one international trip with the hubs a year.