My Debt Reduction Update


car.jpgIt feels like it’s been forever since I’ve updated on our debt payoff.  We still owe $6600 on our car loan.  It feels like a ton of money.  With the last payment I sent, we went over the 50% paid off mark!  I guess in all honesty, it’s not even been a year since we bought the car, so having half paid off is pretty darn good.

If I pay $550 a month, I can have that car paid off in a year.  That would be awesome!  Of course, right now any extra money is going directly into our emergency fund.  I think we have roughly 8 months of expenses saved right now.  I could take money out of the emergency fund and just pay off the car, but then I’d feel like we need more in savings, so I’m just going to keep doing what we’re doing.  We were paying $250 a month, and I bumped it up to $300 after we paid off our student loans. I could have taken that money and thrown it towards the car, but I decided I’d rather save it instead.

I can’t wait for the darn car to be paid off.  If the economy really starts getting better and our job outlooks are good in six months I just may take the money from savings and pay off the car.  Something to look forward to I guess!

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7 thoughts on “My Debt Reduction Update

  1. says:

    I am down to $1400 on my vehicle loan. I am looking forward to not making payments on it. Keep sending extra, it does make a difference.


    Mrs Money Reply:

    FinancialBondage- AHH! That is SO CLOSE! I am jealous. We have about $4,000 left on a car loan. Boo.


  2. Sam says:

    I know I’m late to this, but I just read this posting. My Hubby and I recently paid off his car – such a great feeling!! Good luck and keep up the work on paying off this loan. I’m sure it will be well worth it when you’re debt free! 🙂


  3. james says:

    This is similar to one of your other posts. your story sounds similar to mine i had a $247 car not on a 5 year payment plan.

    within in 3 years i paid the car off. at first i was paying the standard payment of $247 then i looked at the interest and started to pay $500.

    after 2 years i decided i didn’t want to throw money down the drain on interest so i started to make $1000 payments until it was paid off.


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