Big Money

6 thoughts on “Big Money”

  1. I think it’s great that you’ve decided to share some real numbers. I think it really helps to motivate others when they see in actual figures what is possible. I look forward to reading more about your process!

  2. I have been in a similar situation and found that a consolidation loan from my bank really helped make paying-off credit card and car loan debt easier. If one year seems like too much to ask, you might consider splitting it into two years, and also put some money into savings.

    I think more people should be honest about credit card debt. It is very common, and by talking about it we can come to some great solutions as a group, a society. And hopefully avoid future global credit crises.

  3. Thanks for all your encouragement everyone!

    airdrie: consolidating all those loans onto our low-interest line of credit was what made us gasp in the first place, but now at least we just have one payment to make (and we’ve stopped using our credit cards).

  4. Interesting post, and very laudable. Both this one and the next.

    One note for commenter airdrie above: savings accounts for emergencies make a lot of sense, because it’s liquid. But the money should go to where the greatest return is. As long as the debt service costs more than you make from a savings or investment account, pay off the debt first. For example, a line of credit with a 12% interest rate vs 4% interest-bearing savings account means pay the debt first! It’s 300% better investment.

    By the way, I got here from Econoholic

  5. Hi Thebastige – thanks for stopping by!

    I generally agree that having a savings account doesn’t make much sense when you’re paying off debt at a far higher rate of interest than the savings return. That’s why ours is such a small amount each month right now. It’s mostly there as a pad for if we encounter a short-term small emergency during the year (like a big vet bill or something) without totally derailing the budget.

    We’ll work on establishing a proper emergency account once our debt’s paid off.

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