Progress Of A Plasectomy
Where are we now?
At the start of this odyssey we were $17,000 in credit card debt, $50,000 in student loan debt, and $13,000 in an auto loan. From the start of the year we have paid down $12,000 in credit card debt, our balance on the auto loan has been reduced by $1,000 making the monthly payment, and the student loans are lingering in deferment at the moment to help wipe out the credit card debt and make our budget much more manageable.
How did we do this?
Well, tax season and the accompanying refund has come and gone and that helped out tremendously, a $5,000 refund. The other amount came from cashing out my measly 401k from my previous employer when the market was at 9k. Stupid idea, I know, but the pressure of the debt and a few hundred dollars in a budget shortfall every month left me with little choice. I stressed in agony over that decision for months until I finally bit the bullet and just did it. I am fully aware of the future ramifications of that decision and there is no point in looking back and regretting it now. After the federal and state government withheld its supposed right to take my money, I walked away with another $5,000 to apply to the credit cards. To top it off the other $1,200, well that was selling few things around the house and the minimum payments a month.
I am extremely proud of this accomplishment and I know that if all goes well with the selling of our extra vehicle (hopefully soon) and my new second job that we can bust out the remaining credit card debt within a matter of months. It will nice to know that the amount of bills that were coming in will only be a few instead of the mountain it once was. Trying to juggle several credit card payments was a huge mess and a huge burden to bear.
What are your accomplishments so far this year? A quarter of the year is gone, how are you doing and what are your plans for the remainder?
April 9th, 2009 at 8:46 pm
You guys have come so far! You’re very inspiring.
My goals took a small sidetrack with Christopher’s hospital visits but I’m still grateful to have a job and be able to learn more about personal finance. That’s something right?
April 10th, 2009 at 6:18 pm
Dude! You’ve done a great job. From where you’re sitting, looking backward I know that you must be so proud of yourself. You have to be. I think that letting the student loans linger is a good idea. I was contemplating doing that myself but it’s SOOOO much money that I know that the interest would just kill me. Anyway good stuff! I’m so proud.
Sandy’s last blog post..What Not To Do For Money In The Recession
April 14th, 2009 at 10:31 am
Wow… Paying $12000 on your credit card bills is incredible… That will save you LOTS in the long run. However, I too would anguish over the 401k. It’s never good to cash them in before retirement as the compounding returns REALLY add up over time. But if it helped eleviate stress then perhaps it was worth it. I hate carrying debt myself. Went on a rampage a few years back and paid off both cars, all credit cards, HELOC… Have a mortgage left now… that’s it.
Congratz. Just keep plugging away. You’ll get there.