Dumping (obvious and hidden) Debt
Wednesday, May 7th, 2008I constantly search for new ways to dump debt and I’m currently facing a changing point in my life to where I need to start going to the basics. Basically, I’ve come to the realization that there’s obvious debt and hidden debt.
For instance, I have no obvious debt in my Yukon because it’s completely paid for. However, the maintenance and upkeep along with constant rising gas prices is making it become a debt problem to drive. So here’s my solution…
As I’ve said before, I think I can get $15-$17K out of my car (I paid $19K 3 years ago). I’ve realized that I don’t need something other than a dependable older car that will get me to point A & B with as much comfort as possible. I think I can reach that comroft level within a $8K budget. So considering, I sell the Yukon for $15-$17K, That’d leave me with $7-!0K to put invest or save.
Not only will the lump sum monetary gain be obvious, but the better gas mileage/ less expensive car will also pad the savings account that much more. That extra $10K will go a long ways towards my wifes $30K student loan debt (still a ‘09 goal - $288/month).
Considering we’re going to be paying $1400/month in daycare, that aligns us to be able to pocket or invest $1000/month once 2 of my 4 children are in public schooling. In the process, that means that once the student loan is paid off & daycare is no longer an issue, we’d be able to put $2500-$2700/month total towards a house payment (we’ll add our current payment of $1000/month).
That $2500-$2700 monthly payment puts us in a very nice middle to middle upper class neighborhood in a Kansas City suburb.
I can’t wait.
BTW: It’s official! The Nebraska Furniture Mart bill is PAID OFF IN FULL! $524 more to go on my student loan.
