The Debt Slayer
Maybe that should be my new name... okay, maybe it's too early for that.
But I still feel really good because I paid off my Chase Visa Card today! Bye bye Visa!
I got my state income tax return today, which I forgot all about, and will use it to pay off the Visa. That's $783.85 PAID IN FULL!!
That also means that the monthly payment I would have put on the Visa will get shifted to the Mastercard. I am also taking the money I saved from cutting off my home phone and digital cable and adding that AND $35 I saved from dollar bills and loose change. So that's $579.34 on that card.
That's a grand total of $1,363.19 off my debt total just for this month!
Yes!
Yes, I know that a tax refund is not a windfall. It's my money from all year. But as I mentioned in my "Death and Taxes" post, this is the first year I got professional help with my return. Had I done it myself, I might have gotten back about $600 total. I haven't even gotten my federal refund back yet (and you know what I'm going to do with that!), so compared to what I was expecting earlier this year, I'd say I'm doing pretty good!
I also adjusted my W-4 to get more cash in my paycheck without shortchanging my tax payments. I think it comes to just about $40 a month, but I will revisit the math on that.
By the way, what do you guys think I should do with that saved tax money? Save in my 401k or hit the debt payments?
CONGRATULATIONS!!!! Feels good, doesn't it? I'm so excited for you, I'm doing a little happy dance at my desk! :) As for your extra money in your paychecks, well, I think that is something only you can really decide on. I'm a huge fan of paying off all debt first, but I know if you put that money into your 401k now you have more time on your side. That's a tough one, anyone else have a suggestion? I just hate having debt hanging over me, so I am working on that first, although, with that said, I do contribute the max that my company will match into my Simple IRA, don't want to give away free money. Does your company have any matching funds? That might help give you your answer there. Congratulations on paying off the first card, that is so awesome! And enjoy the victory, you have worked hard for it! :)
Posted by: Leanne | March 08, 2006 at 10:40 AM
Congratulations! That is awesome! You're an inspiration. I can't wait to pay off my first card too! Right now any extra money I have I'm putting towards debt. But I guess like Leanne said above, only you can make that decision.
Posted by: Cassie | March 08, 2006 at 04:59 PM
Excellent job DH -- keep up the great work!
Do you get any matching contributions from your employer? If so, are you already getting the maximum match? If you are, it's better to put the extra toward the debt. If not, then run the numbers to see which is better.
Posted by: mbhunter | March 09, 2006 at 02:24 AM
Feels Nice to tell them to Kiss your A$$ doesnt it? Im happy for you..A Happy DH means a Happier Guy
Posted by: Guy | March 10, 2006 at 03:54 PM
Congratulations!!!!! Boy do I wish I could have that feeling (and by the way I told you I read the blog :)) Anyway, I think the saved income tax money should go to paying off the credit cards and buying yourself something special every now and again :)
Posted by: Cynthia | March 11, 2006 at 09:46 PM
I think you should still stick to getting rid of the debt before saving for retirement. From everything I've been trying to get straightenend out, it works more in your favour to get rid of the debt first... mind you, I'm still pretty damned new at this...
CONGRATULATIONS!
Posted by: Les | March 12, 2006 at 09:47 AM
congrats! you'll be out of debt in no time if you keep up this momentum.
Posted by: lpkitten | March 12, 2006 at 05:18 PM
Wow, good job! That's a large chunk of debt...dang! Now that you've freed up some capital what are you going to put it toward? Other debt or investments? If you have more debt, kill that. Then invest. Best of luck!
Posted by: Tim MMF | March 14, 2006 at 08:40 PM
That is awesome! You are doing so great. I want to change my W-4 since I got $2500 back this year but I am not going to mess with it. The reason being we lowered our 401(k) contributions just to the level of matching. And we are using a Fexible Spending Account for the max of $5K to pay for part of my son's daycare with pretax dollars.
I'll keep watching your progess. You are an inspriation.
Posted by: debt monster | March 28, 2006 at 10:08 PM
I split my return so half went to savings & the other to debt repayment. Oh yeah, treated myself to a couple of CDs & a book...on sale of course.
Posted by: Jayy | April 02, 2006 at 11:30 AM