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

SwampYankee · #1 10-07-2008, 03:05 PM

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!

KarTek · #2 10-07-2008, 03:10 PM

Hey, great news Swamp! Congratulations!

SwampYankee · #3 10-07-2008, 03:12 PM

Quote:

Originally Posted by KarTek

Hey, great news Swamp! Congratulations!

Thanks, Evan. With all of the financial gloom and doom, I just wanted to shed a little light.

TX76513 · #4 10-07-2008, 03:12 PM

CONGRATS!
That is great. One benefit you forgot about. This will allow you to lead a less stressful life.

iwrock · #5 10-07-2008, 03:13 PM

Thats pretty sweet.

Gotta be a good feeling too!

SwampYankee · #6 10-07-2008, 03:17 PM

Quote:

Originally Posted by TX76513

This will allow you to lead a less stressful life.

You have no idea! (At least I hope you don't

)

If I had any hair I'd be bald and grey.

SwampYankee · #7 10-07-2008, 03:18 PM

Quote:

Originally Posted by iwrock

Gotta be a good feeling too!

It does feel good, but there is a bittersweet aspect to it when I think of all the money I essentially pissed away.

Zeus · #8 10-07-2008, 03:21 PM

Congrats Swamp!

SwampYankee · #9 10-07-2008, 03:23 PM

Quote:

Originally Posted by Zeus

Congrats Swamp!

Thanks, Zeus!

Chad300tdt · #10 10-07-2008, 03:32 PM

AWESOME!! Congratulations Swamp!!

Debt free is a GREAT feeling.

I have 14 more years on the mortgage to be "truly" debt free.

On a side financial note: I just got an enclosed "info" letter in my PECO bill. It states that after January 1, 2011, their capped generation rates expire and they will charge competitive market rates.

I think I might take on a loan to try and go off-grid somehow. In 2 years, electricity may cause huge financial headaches.

raymr · #11 10-07-2008, 03:52 PM

Good job! On the remaining car loan, maybe you can pay off quickly in big chunks, like $1K at a time. Refinancing always restarts that front-end heavy interest business, only useful if you go for a longer payoff period. You can also switch it over to a home equity loan and maybe deduct the interest.

el presidente · #12 10-07-2008, 04:08 PM

Congrats - it takes sacrifice and discipline to get you out of the hole. Well done!

SwampYankee · #13 10-07-2008, 04:20 PM

Quote:

Originally Posted by Chad300tdt

AWESOME!! Congratulations Swamp!!

Debt free is a GREAT feeling.

I have 14 more years on the mortgage to be "truly" debt free.

On a side financial note: I just got an enclosed "info" letter in my PECO bill. It states that after January 1, 2011, their capped generation rates expire and they will charge competitive market rates.

I think I might take on a loan to try and go off-grid somehow. In 2 years, electricity may cause huge financial headaches.

Thanks, Chad! That is a day I'm truly looking forward to. Hopefully I'll be on track for that now.

I think you're right about electricity. While I enjoy suburban living for the most part, there are times I wish I were further out towards the rural parts so I could do solar and maybe even a little WVO/Listeroid generation for peak use.

SwampYankee · #14 10-07-2008, 04:22 PM

Quote:

Originally Posted by raymr

Good job! On the remaining car loan, maybe you can pay off quickly in big chunks, like $1K at a time. Refinancing always restarts that front-end heavy interest business, only useful if you go for a longer payoff period. You can also switch it over to a home equity loan and maybe deduct the interest.

Thanks raymr. Those are some good options. I may just pay an extra chunk every month rather than go through the application process. That would seem to be the easiest route.