Thursday, February 11, 2016

Decisions, decisions

Our tax refund hit our account, so I paid off Discover before Murphy could get his hands on it. Discover is especially satisfying to be done with because of its 20% interest rate. We debated what to do about that account, but in the end decided to leave it open and the card in the lock box. All of the previously paid off cards were already closed by the time we paid them off so this is the first time we've run into this issue. We decided we're no longer the risk that we were of running up credit unnecessarily. In other words, we've learned our lesson. But we do feel like we should have a card with a credit line available. And, of course, there is the issue of the credit score. We agreed that if we ever charged anything on that card that wasn't an agreed-upon emergency, we'd close it immediately.

This was probably the last huge payment for awhile. Now that we have cleared off a number of accounts, we'd like to beef up our emergency fund and savings. We know we will probably have to replace our HVAC sooner rather than later and we want to be prepared.

It feels strange to actually have enough leeway financially to have decisions to make about what to do with the money. Previously, our minimums ate up the paychecks without a problem. There weren't any choices to be made. Maybe this is just a taste of what it will be like down the road when we don't owe anyone. Oh, what a happy day that will be!

Sarah

11 comments:

  1. Congratulations on another one bites the dust!

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  2. Sounds like y'all did the most responsible/sensible thing with the tax return and the credit card account.

    And just so you know, it is Wonderful up here without debt over any kind and I do hope you get here soon!!! 8-)

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  3. Leaving the credit card open is better for your credit score.

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  4. I like your plan to fatten your Efund. :)

    Eight debts gone now! You rock.

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  5. Always important to have that Emergency Fund! You can afford to save now as you continue to pay down debt and that is awesome!! You've come such a long long way and now you're reaping some of the benefits of your hard work!

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  6. Sorry for the late reply, but my computer went down. Drat another big expense. So happy for you. Glad to know you are going to ramp up other areas of your life as it gives me a chance to catch up. I know I am evil.

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  7. If there's a storm or something crazy, claim the HVAC on your home insurance! They paid for mine due to a 'power surge' around $2,500 or so..

    HS

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  8. Always has a plan B when you are a credit card user. Paying on time is the key to manage your credit score. Emergency funds works in many different ways. It can save us from any crucial financial situations.

    http://www.goldbachlaw.com/long-beach/bankruptcy-attorney/

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