I don't like how debt feels; it chokes me. After giving it some thought I decided that I will no longer hoard our money for savings. I feel that $50K is an adequate emergency fund and any excess beyond that amount will go into paying debt. I am torn about my game plan. At first, I was thinking that I should pay off the furniture at 0% interest which has a balance of $2,900.00. This will free up $106 a month from our budget. Then I thought about it and realized that I have a car loan at 2.99% and I'm paying $75 every month on interest. Maybe I should apply the money towards that debt instead of the furniture. I figured that I want to eliminate debt in $5K increments. I also decided that we are going to use the envelope system for bills. We are spending too much on credit cards and I'm not properly keeping track of our income and I don't like it. My hubby is very low maintenance guy, all he cares about is having a little money to buy beer. No hobbies and very low spender. What do you think? Concentrate should I pay off the furniture or apply the money towards the car?
May 12th, 2014 at 10:08 am