I had set up a very aggressive CC debt payoff plan that would have had us out of CC debt by April. I'm afraid it will have to remain just that - a plan.
As most of you know we have a house we are desperately trying to sell. We came to the realization that we might need to have significant cash reserves to actually get the house sold.
I had mentioned that the current buyer has made an offer backed by a USDA Rural Development loan. USDA RD loans have some hoops to jump through that can require the owners to make improvements before the house is sold - things like replacing worn carpeting, sufficient rain gutters, energy efficiencies, etc. Also, it's not unrealistic to expect that we may have to cover some closing costs for the buyer, or the bank may require that we bring some cash to the close.
So, we've set a goal of $4,000 in cash reserves to finally get this monkey off our back. Where will this cash come from? We'll have to slow down CC repayment. For now, anyway.
So, I've set up a new CC repayment projection that has CCs paid off by next October. It will cost a grand total of $35 in additional interest, over having the CCs paid off in April.
Of course we'll be probably be getting income tax refunds that will help build this reserve, but we're also saving for that porch improvement.
So, until we know how much our tax refund is, when we will actually close on the house, and how much our porch improvements will cost, we'll be going with this October CC debt payoff plan.
A minor delay
January 28th, 2013 at 02:21 pm
January 28th, 2013 at 02:32 pm 1359383553
January 28th, 2013 at 02:54 pm 1359384888
January 28th, 2013 at 06:25 pm 1359397506
January 28th, 2013 at 08:26 pm 1359404814
Yup. Porch before CCs. Some home improvement projects just need to be done. Our porch is falling apart, and my MIL is disabled, and has a great deal of difficulty entering our house the way it is. This won't represent any new borrowing, which is good.
Our CC total is $1,871. None of it is at an outlandish interest rate. OK, about 1/2 of it is at 8.9%, and the other half at 5.25%.
We've paid off about 22K of credit card debt over the past 28 months, and this porch project is long overdue. Let's just say that we're treating ourselves at the 80% paid off point.
January 28th, 2013 at 10:43 pm 1359412982