Wednesday, July 18, 2012

Debt Free, Not Yet

Wouldst thou shut up the avenues of ill, Pay every debt as if God wrote the bill. ~Ralph Waldo Emerson

We had a plan, Debt Pay-Off Plan A. We planned to be debt free of our credit card debt, which actually is how we paid for the second van so it is like car loan, sometime around Christmas time, maybe even November but possibly as late as January. I never plan on an Income Tax Return, because we usually break about even, but this time around we received much more than expected (a benefit from giving more than 10% as our tithe), so I was very excited about launching Debt Pay-Off Plan B! After some prayer we decided to pay more each month out of those extra funds and then pay the debt off completely in July, this month, in one last lump sum.

I am so thankful we listened to our Lord, because Plan B was to be short-lived. A few weeks ago, my husband could not dodge the rubber flying from a semi-truck ahead of him without causing a real accident. He drove over some of it as some more flew over his mini-van into the radiator and windshield of the vehicle behind him. We do not have collision on the van as it is so old with so many miles on it that the insurance company would total it for something like this and hand us about a thousand dollars if we were lucky.

Either way was a risk about the collision insurance, but we have had that van for four years and by now we would have paid nearly as much as what the insurance would have given us for it totaled. We chose to pay for the repairs, which was a new transmission, because we just could not afford a replacement vehicle right now and otherwise the little van is in good working order. (Since this happened in another state, he had to leave the van and fly to a customer in the north and fly back to pick up the van, which ironically had a lay-over in Atlanta, but I would not see him for another eight hours.)

So, the money I had earmarked for paying off the credit card paid for van repairs instead. The good news is that we have a 0% interest rate until February and if I had paid it off the repairs would have had to be charged with extra fees or at least interest charged.

Now we are back to Debt-Payoff Plan A, but I am optimistic. It looks as though we actually should pay it off in October!

~ My Lord, bless our efforts to get out of debt and begin saving for replacing the siding on our house and other repairs necessary. ~

6 comments:

  1. I applaud your efforts to be debt free and staying the course even when temporarily derailed! God will bless you for it.

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    1. When we first moved to Georgia we were 100% debt free, then we bought the house and had a baby...and went a little crazy with buying baby things and furniture and that is what stared us having more debt than we could pay off by the end of the month. We used to have that as our limit. For furniture or something expensive, we would allow three months, but once we got in the habit of having debt, it just seemed to never really get paid off. (I am the tightwad of the family.)

      To be honest, we will not really be debt free except for the mortgage in October either. This is just one step up that ladder. We have a 2nd mortgage that paid off IRS discrepancy due to lost business expense records so technically it is also consumer debt and we hope to start putting a bit extra towards it but there are other considerations. Anyway, that is our debt on paper.

      Then, there is the a huge repair on our house that is looming but not on paper. We MUST replace all the siding on our house and most of the windows because of a "never paint again" type of paint product that is causing all the wood to rot and the south side is coming apart now. So debt-free as to our credit card debt may not last long either, but at least we can start saving up for the house repair, which we might do the worse side as soon as we save up enough and the others later as we can afford them.

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  2. what do you think of fasting? come and have a look.

    ReplyDelete
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    1. This is probably just a spammer but I will answer the question. I have written many times about fasting and you can find those posts by clicking here.

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  3. You're such an inspiration! Having debts is overwhelming but you still keep your spirits up and continue to seek for a solution. Making plans is really a good strategy. Your Plan A didn't work well for you at first, but having the 0% interest rate for the repairs was a relief. Anyway, it's been a year, how's your progress in paying off your debts? I hope it's already over or closer to it. Jaden Allred @ TorontoBankruptcyAdvice.com

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    1. Well, we could have paid off our debt earlier, but then we had the transmission go out on our second mini-van just a few months after this post. However, we still paid off our credit card debt completely in October as I had planned. It was a bit of a crunch but we made it and enjoyed a debt-free Christmas.

      Now a year later, we still have no credit card debt and are saving for a very necessary and major project for our home that we hope to begin in the spring. We most likely will have to go into some debt for it, but we hope to have at least half or more saved up to make the debt as low as possible.

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Thank you fellow travelers for walking and talking with me along this journey.