WOOT! 100% Unsecured Debt Free! 1st time in 10+ years. - Page 3 - PeachParts Mercedes-Benz Forum

SwampYankee · #1 10-08-2008, 07:22 AM

Quote:

Originally Posted by aklim

Swamp! Old Buddy! Old Pal. Lend me some money then

Aklim, you're a sweetheart. No.

SwampYankee · #2 10-08-2008, 07:21 AM

Quote:

Originally Posted by G-Benz

Swamp! You're my hero, man! And an example for those who think they can't get out of that kind of rut without those credit card debt assistance companies!

You said it plain and simple...time, sacrifice, and even taking on additional work!

I'm slowly working on mine as well, (aside from all of those darned projects), and maybe can post the same before my kid goes off to college!

Thanks, G! I also came to the realization that I'm "only" 7 years away from kid #1 ostensibly going to college

and I'd better get myself out of the hole before I started digging that one. Then #2, don't know what the future holds for #3 but won't rule out anything, then #4.

It feels good even if only temporary.

Our house will see some long-delayed attention, too.

Hatterasguy · #3 10-08-2008, 10:25 AM

Quote:

Originally Posted by SwampYankee

Thanks, G! I also came to the realization that I'm "only" 7 years away from kid #1 ostensibly going to college

and I'd better get myself out of the hole before I started digging that one. Then #2, don't know what the future holds for #3 but won't rule out anything, then #4.

It feels good even if only temporary.

Our house will see some long-delayed attention, too.

Talk up the Navy! Thats what my dad tried, and it didn't quite work.

Or the Coast Guard Acadamy...

Things are cheap now, if the interest rate on your mortgage is low I'd pump more into the 401k and maybe buy some good stocks. Like GE, Toyota, etc. Companies that are going to come out of this strong. Thats my 2 cents.

Dee8go · #4 10-07-2008, 05:05 PM

Quote:

Originally Posted by SwampYankee

Thanks, Dee! But think of the buying opportunities!

That's the way I look at down markets. I don't put money into equities that I know I'll need anytime soon. When everything goes the way it's been going lately, I buy the stuff that I've been watching for a while at bargain prices. The market always overreacts. When it does, I try to be there with cash in hand. It's like a giant fire sale.

732002 · #5 10-07-2008, 06:32 PM

Well done!

I would pay off the 10% car loan rather than putting extra
payments on the mortgage. Mortgage interest should be lower
plus a tax deduction.

Save emergency money.

401K vs mortgage: I would add more $ to the 401K than mortgage, after
paying off the car and emergency savings.

kerry · #6 10-07-2008, 07:32 PM

Well done. Nothing like being debt free. It's liberating not to have a lease on your future labor.

SwampYankee · #7 10-08-2008, 07:47 AM

Quote:

Originally Posted by kerry

Well done. Nothing like being debt free. It's liberating not to have a lease on your future labor.

Thanks, kerry! Very true, even if it's only a recent sensation for me. Now the only lease payment I'll have is the first 4 months of the year for the taxmen.

SwampYankee · #8 10-08-2008, 07:45 AM

Quote:

Originally Posted by 732002

Well done!

I would pay off the 10% car loan rather than putting extra
payments on the mortgage. Mortgage interest should be lower
plus a tax deduction.

Save emergency money.

401K vs mortgage: I would add more $ to the 401K than mortgage, after
paying off the car and emergency savings.

Thanks, 73...!

That's my line of thinking right now. I'm really just tired of loans.

I upped my 401k contribution to 8% (the company matches up to 4%) figuring I wouldn't really notice it too much since a bigger chunk of that paycheck will be staying home now (and it's probably the time to buy low to sell high

). Once the van is paid then I can really tackle the mortgage.

732002 · #9 10-08-2008, 10:23 AM

http://buildingequity.blogspot.com/2007/04/401k-vs-extra-mortgage-payment.html
"401K vs. Extra Mortgage Payment
If you find yourself with some excess income these days, you may be wondering whether you should put more money into your 401K or pay off your home mortgage faster.

Which is better?

From a purely financial perspective, if you have a low, fixed mortgage rate you are better off putting money into your 401K account. There are 2 reasons for this:

Any extra money you put into your house will have already been taxed. That means that your money has already lost 20% of its value before you are able to use it to pay down your mortgage. 401K contributions are pre-tax, meaning the money goes into your 401k account before any taxes are removed from your paycheck.

Your 401K will likely earn more than what you pay in interest on your house. Let's say your mortgage rate is 6%. Even at a conservative 8%, your 401k will out-earn what you pay in interest by 2%."

I know earning 8% on your 401K seem like a fantasy right now.

Dee8go · #10 10-08-2008, 10:28 AM

I hope to have my mortgage paid off in a couple of years. Unfortunately, it will be because I have sold the house. I have high hopes for the one after that, though.

tbomachines · #11 02-20-2013, 11:17 AM

:

Whatever happened to WVOtoGo?

Mr.Kenny · #12 02-20-2013, 01:07 PM

Years ago, When I paid off everything; it felt like I bought myself & my family out of slavery. That feeling has never gone away.
Just imagine no more debt, no more payments, no more owing anybody anything. I wish this for everyone.

FREEDOM! FREEDOM ! FREEDOM!

kerry · #13 02-20-2013, 08:26 PM

Quote:

Originally Posted by Mr.Kenny

Years ago, When I paid off everything; it felt like I bought myself & my family out of slavery. That feeling has never gone away.
Just imagine no more debt, no more payments, no more owing anybody anything. I wish this for everyone.

FREEDOM! FREEDOM ! FREEDOM!

Amen, brother.

Botnst · #14 02-20-2013, 07:06 PM

Quote:

Originally Posted by SwampYankee

Well, it's official. The electronic payments have cleared and I'm completely unsecured debt free.

I've made no secret of my previous financial stupidty ($45K+ credit card and various stupid debt between my wife and I) and while I'm quite embarassed that I let myself get to that point to begin with

, it is quite satisfying to finally pay it off. No bailouts, no bankruptcy. Just a long 10+ year process with lots of sacrifice (including a paper carrier route for the majority of that time), often at my family's expense.

Every credit card has a zero balance (several cards have been cancelled), past medical bills paid in full and my Jeep is paid off early. Even though there were only 5 payments left, I wanted to get it paid off so that I can get the title in my hand to sell it. I need to have something that will carry at least 5, if not 6, passengers.

I've been considering paying off my wife's Odyssey. We still owe $10K and because of my crappy credit at the time the rate is over 10%. The math says I should pay it off, I'm just concerned about not having enough liquidity in reserves for a rainy day. I might see if the credit union will refinance at the 5.5% preferred customer used car rate for the remaining 36 months and if they don't just ask for the payoff amount and transfer the money right out of my savings to the loan account. That'd free up about $400/month. Or maybe payoff 1/2 the outstanding balance? I guess I already know the right answer, it's just my pessimistic side bleeding through.

It's been a long, tough road and a huge burden has been lifted. Now I can just stew over all of the money I wasted over the years and what I could have bought with it.

I'm now going to be able to put an extra 25-30% towards my mortgage every month and my 401k donation has been upped another 4%.

Now I can begin rebuilding my crappy credit rating, even if for no other reason than personal satisfaction. Thanks for letting me toot my own horn a little, even if it's not exactly something I'm proud of.

Do as I say, kids. Not as I've done!

Good job, Swamp. That's really, really tough to do. I wish more Americans had the self-discipline and ambition to do what you have done. (Not to mention congress).

SwampYankee · #15 02-20-2013, 08:53 PM

Quote:

Originally Posted by Botnst

Good job, Swamp. That's really, really tough to do. I wish more Americans had the self-discipline and ambition to do what you have done. (Not to mention congress).

Thanks, Bot. It's been nearly 5 years since the OP and I'm still in the black. Far from comfortable (of course being a pessimist doesnt help) but still out of the hole.