January’s Progress
- Debt #1 Original Balance (in May): $2260.17
- Paid Off
- Debt #2 Original Balance (in May): $6493.00
- Paid Off
- Debt #3 Previous Balance: $3,396.21
- paid $1,768.50
- Current Balance: $1,627.71
Original non-mortgage Debt (in May): $19,375.72
Current Grand Total: $1,627.71
***
I have high hopes for paying off this debt completely by the end of February! I only wish that were the end of it — Unfortunately, we have a 2nd mortgage to tackle…
The question is, do we fully fund the emergency account before we focus on the 2nd mortgage? Do we go ahead and start contributing to our retirement again? Think on that and I’ll get back with you; I’ll be posting the details of our situation soon, including balances, and will be very interested in any and all opinions, input and advice.
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{ 6 comments… read them below or add one }
Are you going by Dave Ramsey’s plan or making up your own? If you’re going by the babysteps… then you pay off all of your debt except the house, then you build up the fully funded emergency fund, then you invest. Not a little of everything, scattered. Ignored the interest rate. Pay it off. Then you’ll have that much more money to put into the emergency fund, then invest!!
We did it. It’s worth the pain.
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wow! I’m impressed! You should be so proud!
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The amount you’ve paid so far is seriously amazing…and inspiring!
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I think it matters how big that 2nd is. If it is more than your gross yearly income, I’d first fund your emergency fund, start putting a percentage back into retirement and then tackle it. Basically if you can’t pay it off in 2 years, then put it in the ‘mortgage’ category.
We have a similar situation. We actually have three ‘snowballs’ – first one being the consumer and a car loan. That will be paid off, Lord willing, in 22 months. Then we’ll get a full emergency fund and more into retirement. After that we have student loans and a 2nd, then the final mortgage after that. It’ll be a long road but I know it’ll be worth it!
Good luck in your repayment. You sure are doing great!
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Sweety, you don’t give enough details. Is it a true second mortgage or is it an equity line? If it is an equity line and you are paying prime rate (which is 3.25% right now) I say increase your payment to that a little and tackle that emergency fund. 3.25 is a super low rate.
If you want real time advice aka, not posting online the full monty; (I work in the mortgage/credit industry) drop me an email
Jen
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jolyn Reply:
February 2nd, 2010 at 4:04 pm
Jen,
I’ll post all the details soon, I pinky promise. I’m all about keeping it real here. 
It was meant to be a teaser
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What would Dave Ramsey say?
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jolyn Reply:
February 2nd, 2010 at 4:06 pm
I love that you said that! Actually, I have studied WWDS (heh-heh) but I feel like our specific situation poses variables that don’t make it black and white… I will post details soon to explain my confusion
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Our Lives Reply:
February 2nd, 2010 at 11:44 pm
Still waiting….
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