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Sunday, May 31, 2009

Debt Snowballing

How are you spending (or saving) your tax refund? We just got ours back, and I have to say I am GIDDY thinking of what we're doing with it.

Our tax refund is taking us farther in the right direction as we use it to increase our emergency fund, and to pay down debt. It's simple really, but I just get really excited about progress. The part that has me the most excited is the paying down debt part. I just wrote a check for $1,100.00. I told you I was giddy! I told my husband yesterday that I was just ITCHING to send off that check. We are so happy that we're able to finish paying off one of our student loans. Of course, we have more of them to tackle, but we're on a roll baby! We are debt snowballing!! (I know, I sound like Dave Ramsey...but that's ok, because he is really smart.)

Now that we have one loan paid off, we will be taking the $50.00 a month that we were paying on the first loan, and we'll use it to put an extra $50.00 a month on the next debt that we're paying off. We also threw and extra chunk of refund money onto this second debt to give a running start. See how good it makes you feel?

Ok, so I'm excited about growing our emergency fund too. Having an emergency fund is also really important. That way, if something bad and unexpected happens (like you need to fix the car, or a medical bill, etc.) you have a little cushion to draw from without automatically sinking further into debt. In my opinion, that's HUGE.

So what are you doing with your refund, and why? I'd love to hear about it!

4 comments:

Snow White said...

awesome!! congratulations!!

we didn't get a refund this year... :( but, we are saving and snowballing towards our student loan debt.

Randall and Rachel Beita said...

Yea!!!! Way to go! I don´t get refunds but I know that writing a check like that knowing you are paying off a debt can make you feel good. Praise God for his blessings.

Alaina said...

Ours was spent instantly...debt! Check out my blog in a few days to see what I recently started doing.

Heather said...

debt free is the best concept ever! one day we will get there...