This week we finally got the funding from our cash out refinance. We were able to pay off all of our credit cards, we were also able to throw a considerable amount towards my student loans. I closed two of the store credit card accounts, and we applied to have one of our cards switched to a higher cash back percentage product.
We should be finalizing what we need to to get the Nissan paid off with our GAP coverage. I am just waiting on documents from the lender in regards to final payoff number and a copy of the check from the insurance company.
I reworked the budget and debt payoffs to reflect the MUCH lower minimum payments, I will use the difference from what our minimum payments used to be to what they currently are as a snowball payment every month. Any additional income we have will be used as snowflake payments since the amounts are inconsistent.
The last couple of months we have gotten in a bad habit of eating up our snowflake payment with extra spending that doesn’t need to happen. We are going to change up how we do things. I am going to budget $150 each month to a “stuff happens” category, the balance will rollover each month if unused, but our “extra” debt payments will be made at the beginning of the month, instead of the end of the month where they could possibly disappear before the end of the month.
This month we did have a couple of known expenses, we had hubby’s birthday which we usually spend a good chunk on our own presents, and then Mother’s Day where we also spent quite a bit. The rest of our snowflake was eaten up this month making the raised garden beds I had been wanting for a couple of years. Assuming these actually grow things, we will be saving a lot on produce in the next couple of months. Also, we had been giving a lot of wood from my in-laws so that part of things was free, we just had to pay for the soil, compost and seeds.
With our minimums (no additional snowflake payments) we are on track to have my student loans and our new car paid off in 2 years. With additional snowflakes we should be able to get it done sooner. We cannot wait to finally have these things paid off but we are SO excited to be down to only two things, even if it meant maxing out the debt against the house. We will be saving a FORTUNE in interest. Once these are paid off we will be looking to sell and getting onto our “dream” forever property.
Here’s to changing things a little to hopefully make a lot of progress!
