Rethinking Finance: How we paid off our car in 4 months

In our ongoing effort to pay off debt, I reviewed in a previous post my perfect storm of getting two raises and quickly paying off credit cards.  We are looking for a change in life, and that means getting out of as much debt as possible.  As the debt snowball continued to build, we set our sights on our next target to throw it at,  the car loan. Our other car is the humble 2001 Hyundai Santa Fe.  She’s not much to look at, but consistently runs and was bought with $5,000 cash about 8 years ago.  I’d be a fool to let her go until her last gasping breath.  But our family car is a bit nicer in the SUV category, and the apple of my wife’s eye (next to the two beautiful kids in the backseat, that is). We had $12,000 left to pay on it. With our substantial ninja budget-cutting maneuvers, we really had no bills left over beside the usual mortgage, utilities, groceries, tithe, (and um, cough cough, the student loans remain, but that’s for another post).

The debt snowball grows…

Our huge debt snowball now had the ammunition of about $2400 per month.  A year ago, I was praying for an extra $2,000 per month as a stretch, but we were now surpassing even that.   We got a nice tax return, which took about a quarter of our car loan away- that was a nice bolus to kick us into high gear.  Having done our taxes early, we got started right away in February after our credit card debt was eliminated.  Month after month passed.  With such a large chunk to give it was heaven to see our total go down paycheck after paycheck, and helped us keep to the ultra-lean budget.

My favorite phone call

Last week I made one of my favorite phone calls in recent memory.  I called the bank that held our car loan for the payoff quote.  That sweet, final sum was spelled out in dollars and cents, and the day my paycheck was direct deposited, we paid off the car. Done.  Another goal met.   Another prayer answered.  Another mountain climbed.

Now, for that monkey that has been hanging around my neck for years- the infamous student loans.  I have you in my sights!  But that will our biggest mountain yet.  Get your crampons, rope and ice ax ready.  It won’t be an easy climb.

This post Rethinking Finance: How we paid off our car in 4 months appeared first on Rethink Redo Repair

 

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