Down Mulberry Lane

Ponderings on our debt free journey...

Today, we were sorting out decisions.  I am currently cleaning out last years files of paperwork and as I went through each file, I was happy to place those paid in full in the back!  Of those that I am coming to that we still owe, I figured the end payment date if we continue to pay as we are. 

Our truck is financed at 0% interest and will be paid off by December of 2010.  Our furniture also at 0% interest will be paid off by March of 2011.  Our home has 15 years left on it as well.  And our refinancing of our "extra debt" will be 8 years.  We have a Discover Card, which all online purchases are made with that we hope to pay off within the next couple months.  And one last Sears Card that has low interest... 4.9% of which is second to pay off after the Discover Card.  

We are on the market for refinancing our home loan.  We had a 5 year rate loan (30 year payment figures of which we have paid 12 years on), which ends sometime this year or next... I forget when, but after that 5 years, the bank asks us to resign at the "current rate".  We decided we would like to lock our rate in with the low interest for the rest of the loan, rather than worrying that in 5 years, the interest may not be as good for us.   We started exploring options of what to do with our finances overall and discovered some wild and crazy thoughts...

If we can refinance the house on a 15 year loan and tack on the refinance portion and pay as figured on the loan calculator... we can save $5,000 on interest AND have a lower payment by $300+ each month.  Dh figured 11% down to 5+% even going 7 more years will save us money... that was wild for me to conceive!  And if we pay what we pay now on the refinance and put it on the house loan, it will reduce our 15 year loan to 10 years... and save $22,000 + in interest on both loans. 

Dh was really disliking the idea of refinancing the house and going hunting for a loan that would have the same interest for the entire 15 year term.  But this revelation was incentive to his ears.   We are now hoping to find a home loan that will cover both loans and refinance.  Then we intend to find a way to make bi-monthly payments, which reduces your interest by tons as well.  (we have this currently as well).  Then we hope to make the larger payments, without penalty. 

Our drive on the other bills will be to pay off the highest interest of debt...(as the totals reflect this to some extent)... the smaller debts are at higher interest.  And to continue moving that payment to the next area of attack.  It is a bit hard to pay off a no interest loan ahead of time, but with several financial seminars they say... get rid of those bills, work smallest to highest, not focusing on the interest so much as the ability to pay it off quicker.... as you will then put that payment on the next bill... which may be a higher interest, but you will pay it off all that much quicker.  We are praying about that.  with having two loans currently at 0% interest that both last 3 more years... we wonder if we shouldn't just put the extra on the house payments and continue paying those for the three years and then after three years, we can attack the house with gusto... possibly paying off in 7 years or less if we are diligent with moving that payment over.  (I realize we are looking at needing another vehicle in the future, but we are trying to put that off as long as possible.... although it is entirely too tempting to look for a car to trade in for my van to get better gas mileage.... that would be a savings, too... with day to day expenses!)  We also are researching energy saving ideas and trying to come up with more money saving ways.   Also, gardening, groceries and menu planning are another way we are trying to save some monies.

Anyways, I am in such hope.  I have never felt that we could ever dig out of debt... especially in less than 10 years, but it is hopeful that we can.  And if we are totally diligent and not over aggressive with new expenses (realizing college is on the horizon... one starting next fall!)... we could be out of debt sooner.  

I am also selling extra household items on ebay and last week sold $42 worth of items.  While not alot, it is still helpful.  Now I am trying to come up with a plan for those funds.  How am I going to tuck it away to make a difference in our bills.  I would love ideas from those that are more into these financial strategies.   I was thinking that after tithe, I should give some to savings and some to bills?  I was thinking of maybe putting a definate amount on our child sponsorship giving...5% or so and then split the rest... I don't want it too difficult, or hard to keep track of, but I do want the use of the money to be noticable. 

I feel so encouraged today.   Our finances are on our mind alot lately.  Dh is trying to sell sheep as best he can with the market being so slow last year and this year people wanting "deals".  He has to figure costs of keeping sheep rather than selling them at a lower cost, but having savings on feed... It is an interesting time.  We also have some considerations of using an acre or up to three of our pasture acres to raise sweet corn or some other items and sell on road corners to make more money as well.  That would be a timely investment as well, and needs consideration as to what would be expected out of me.  As we found that farmer's market kept me too busy to do as much canning as we would have liked to have done.  Canning our own food helps save money too... if you are too busy selling one crop, and leave the rest to rot, what good is it to sell the one crop... I might as well of stayed home and canned, rather than running off to market to sell what little we did.  (And still end up buying food cuz we didn't can enough!).   I think the encouraging part is knowing that we are finally realizing the expense of how we once lived... And trying to change that... well, that is at times a frustrating endeavor.  The benefits will some day outshine our seemingly painstaking efforts. 

Warmly, ~Melissa

praying

8:00 PM, February 3, 2008 .. Posted by sweetie

That God continue to lead you on how to reach your goals. I am so proud for y'all to be finding ways to get there. We are on the same path, though it seems ours is so long, but God has surely been in the bills we've been able to pay off and the new job that brought in more revenue.
hugs
Sweetie

Untitled Comment

8:06 PM, February 3, 2008 .. Posted by gabbie427

It is hard work trying to crawl out of debt, but it is well worth it at the end. I hope you achieve your goals soon!

God's Blessings,
Amy Jo

Untitled Comment

8:35 AM, February 4, 2008 .. Posted by a1health

Best of luck to y'all. I'm so proud of you for making the sacrafices for your family. Have a great week.
Blessings,
~Farrah