Tuesday, October 24, 2006

Time To Refocus

Well, the unbelievable has happened; the absolute final credit card payment was sent and now I am wondering what is next. For the past several months I have been saying that we are working toward the credit card debt getting paid off but now I am looking at our other debt and it would be great to get that paid off too. So the question is, what is next?

I currently have three student loans but one of them is a very high interest rate (it might as well be a credit card; its a variable rate that currently is squatting at 8.5%) whereas one of the others has no interest and the third loan is tax deductible and I get the full benefit of that deduction every year. So, that makes the next target my student loan. I just wish the balance wasnt so much. Right now it hovers somewhere around 6500 dollars, but that seems like it will take forever to payoff.

Currently I am taking extra money that I earn on the side and throwing gobs of it at this debt, but it still seems like it will take a long time to be free of it. But in reality, when I look at others like Tricia at Blogging Away Debt, it doesn't seem like that much debt at all.

1 comment:

Trent said...

It's definitely a good move to start knocking off your debt, starting with your highest interest one first. It might be worthwhile, if you're having a hard time getting psyched up for it, to make some sort of visualization of your debt, like one of those "thermometers" that charities like to use to show the donations as they add up to a goal. I use these myself; I keep one on the refrigerator to help me keep my eye on the ball.