The feeling...

So this is probably the best part of all of this. In the last week after paying off our last consumer/stupid debt, we've had a chance to reflect on what this means to us. We're less concerned about our position, although at the moment, one bad accident or job loss or something like that would be devastating. The feeling that we don't owe anyone (except the house) is so freeing and just so indescribable I know I'll never be able to get it down. The cars drive better, the clothes feel better, everything just seems easier.

Now this is not the time to get distracted again. We've already realized that this is one of th dangerous moments, when you could undo all you've tried to do. A purchase here a purchase there with "new found" money can rapidly lead you back down the path you have supposedly just managed to get off of. We've had our little oops moment this week, but managed to recover quickly and will not let it happen again. There's still that 'eye on the prize' you need to have. Just because the debt is gone doesn't mean you get to start spending like it's not coming back. It would love to take up residence again, but you have to continue to fight the urge to get out there and blow all your hard work on 'stuff'.

We've reached one milestone with our payoff of $13,300+ in debt. Now we get to shoot for the beginnings of true Financial Peace, by securing our future with savings and wiser choices than we made in the past.

I know that Dave Ramsey has his critics. I know that we didn't exactly follow his plan and we're still not exactly - I've ramped my 401(k) back up to 5% to get the full match from work already, before we get our 6 month EF done - and that will cause things to take longer. But we're beyond the emotional highs we needed on this I think, and now it's down to getting some things put in place to do what we want. Still, I have to give him a big credit for where we are. Tam's read the books, I've watched the videos and listened to the audio + radio shows. If you don't think you can do it - just listen to a Friday show where he takes debt-free call-ins. They are the most uplifting calls to hear and a large part of what has kept me focused.

So thanks to Dave, and our own hard work, we're on our way... and the feeling is quite wonderful.

Overpayments and verifications

So of course we've been waiting for the 401(k) loan payment to clear to verify that it's done. Today I logged on and found it it was credited yesterday. As well as finding out the payment was more than I owed...knew that. So we're getting a few dollars back, which will be enough fro the finance charge that we'll be sure to get on our next CC bill even though the balance was paid off totally. I've figured it at a little less than $11, so we'll end up getting back in total about 14 net from the overpayment to the 401(k) loan after it's all done.

Being able to go online and verify payments and balances, is just so important these days. I can't think how much longer we'd have been doing this if we were not able to take advantage of online account management. It's been a big help.

We did it! Debt Payoff Complete!

Today marks the end of our debt. We stand today owing nothing to anyone except for our house. In today's times that is the lifting of a heavy burden off your shoulders. The hope that we've had for the last year has been fulfilled with the final payments to our last 2 outstanding debts.

Today we paid our credit card off - $1705.00
and also sent in our balance due on my 401(k) stupid tax loan - $811.68.

Total debt paid over the last 12 months (minus 5 days) = $13323.56

That's a paid for car. Maybe not a top of the line car, but a nice new one.

I'm going to have to take some time to collect all my thoughts on what this now means for us. The most obvious fact is that we feel like doing a Happy Dance! One of the things that has gotten us this far is our commitment to stop spending like there's no tomorrow. There is, and then the bills come due. We got off that merry-go-round almost a year ago. Today we stand here only owing on our house. That's still a huge commitment, but it's at least something that will appreciate over time unlike the "things" we got with our spending.

I'll get around to a more in depth post later, work is calling and there's supposed to be a snow storm this afternoon. Wonder how many of my co-workers won't show up today?

We're free! Free Free Free Free!!!!!

Another 2 weeks, another set of payments

So for those following, total debt (minus the house) is now at $2511.29 Never thought I'd see those figures. There was a time about a year ago that it didn't seem anything would be able to bring this thing under control. I was wrong. Dedication, perseverance and simple action have brought this monster to a point that we're walking out of the tunnel and finishing off the little drips and drabs of our debt.

401(k) Loan - $806.29
Credit Card - $1705.00

I had calculated us at below $2500, but that didn't include interest charges. We've also received our Mortgage Interest 1098 form from our Lender. We never itemize because we never have enough to do so, but this year H&R Block pointed out a chance to raise our standard deduction from $10,900 by the amount of our Real Estate Taxes. I've been over the worksheet and it works, so since we paid 700+ in Real estate taxes this year, our deduction goes up by that amount. I'm ready now to file our Federal return and get the state one filed as well today. I love doing this online, even though the state will cost me $40.00 (oops - only cost me 29.95 to file the state! 1/29/09) to file in the end. That amount is worth it to me to get the money back quickly and have it directly deposited into my account.

Take heart people. This is something you can do. If we can make it out then you can too. Never lose hope.

Waiting for documents...

So begins the annual ritual of waiting for all our paperwork before we can file our taxes. We've received everything except our 1099's and our Mortgage interest paperwork. The nice thing is that again H&R Block has found a new thing that will at the very least pay for using them and at best give me in the end an extra 60 bucks after their fee for state e-filing. This is for everyone to look into! If you don't Itemize deductions and just take the standard...Look closely at the instruction booklet instead of just blithely writing down that number on the form. You'll be surprised. It can be adjusted upwards by the value of your Real Estate Taxes, even if you don't itemize. At least that's what I'm seeing. Take note - I'm not a tax person and don't take my word for it, but check with yours. HR Block is indicating that this is a possibility for us, but I also want to look into the possibility that this will affect our state return for next year. So it's still up in the air even before we get all our paperwork, but we hope we'll be able to take advantage of that little credit.

We're going to e-file again with Direct Deposit because it's so simple and we get it all back so quickly. I can't begin to say how much better this is than doing the paper form and mailing it in. My only thing is this - with all the ability in the .gov arena, why do I have to do this through a third party that will profit from it? Why can't I just do this directly at IRS.GOV? That makes NO sense to me.

A Question of Ethics.

Like many people I watch and hear the ads for finding a better checking account and lately I've been wondering about them. Most have the comments about "direct deposit, and use your check/debit card a certain number of times a month". By doing this you get a nice interest rate. Sometimes the rates are way up there. How do they get these rates? My understanding, and if I'm wrong someone please correct me, is that it's by using your debit card and instead of hitting "Debit" you swipe it as a credit card and sign the slip. No PIN transactions. The deal with this is that when it is swiped as a CC, the bank gets to charge the merchant more of a fee for that transaction. This translates into higher profits for the bank, so higher interest to you.

So my question for you is... Does this seem like an ethical thing to do? Are you hurting the merchant by doing this, which could lead to higher prices to recover the CC fees? Which would lead to buying less, or not buying the higher priced item. My point here is to make you think about using that card as a CC. I'm not a merchant, I don't sell things unless at a yard sale or on Craig's List so this doesn't affect me in that manner. What I want to know is - - does this action - taken in the context of trying get as high an interest rate as possible - seem ethical to you? My answer is no, it doesn't seem ethical to me.

< 2000 left on Credit Card

Yesterday we made another bi-weekly payment to the credit card. This making 2 payments a month is really working out well. We're finally down below $2000, with a total debt load now of only $2761.86 to go. Can you say - YES! This is the light at the end of the tunnel. Can you begin to imagine the feeling of almost being totally (Except the house of course!) debt-free? The idea that in just about another 6-7 weeks we'll be out of it all is nothing short of overwhelming.

So just to keep the running tally going - that's ---

$1935.oo left on the CC.
$826.86 left on the 401(k) Loan.

(of course that doesn't include the interest we're now paying on these)

Total paid since Feb 2008 = $10529.96.

I know that wisdom says, pay off the 401(k) loan since it's the smallest, but it also has the lowest interest (4%) and it's coming straight out of my check without any thought at the moment, so all effort is going to get the CC (12.9%) paid off first.

We will end up using some of our 2008 Refund to clear this off, but still not as much as we would have even 2-3 months ago.