Friday, February 15, 2008

New Challenge

Now that our cars are paid for, it's time to attack the line of credit loan. It's our last item in Baby Step 2. (We already have baby step 3 done because we are rebels and don't always follow the rules.) This line of credit was used to pay for all kinds of things it shouldn't have, which really frustrates me. This balance consists of landscaping projects, an in-ground swimming pool, business expenses, and possibly a credit card balance or two that was transferred over here. The only valid expense, I suppose, is the new roof on our house. I'm really not exactly sure what the debt all entails - all I know is that it's a large amount of debt and I want it gone.

The line of credit balance is just a little less than the remaining balance on our mortgage. (as a side note, most of you would probably kill to swap me mortgage balances.) Last night my Excel program was smoking as I was punching numbers. I was able to come up with a plan that had us debt free except for the house by January 2009 - less than one year away!

Those little payments of extra cash (book sales, refunds, etc.) are now being sent straight to the heloc. So far this month I've sent $121.75 of additional cash to the heloc, and because we've really cut back our expenses, we are looking good to have a hefty balance left over at the end of this month to send to the loan.

Debt free except the house within 11 months. Sounds sweet!