Home Equity Loans can be wonderful things if you are doing a major project on your home, like renovating your kitchen. A new kitchen adds value to your home but unfortunately when you take out a home equity loan just to consolidate debt you don’t have a pretty new kitchen to show for it.
We took out a home equity in 2014 for $17,000. It is due to be paid off in August of this year. I don’t want to wait that long though. I want it gone, and I want it gone NOW. We owe just under $1900 on it. I am paying that sucker off next month. Seriously. I mean it. I don’t care if we have to eat peanut butter and macaroni all month, that home equity will be history by March 31st.
I have a plan. It may not be popular with my family or the financial experts but sometimes you just gotta take a leap of Faith. For me it’s all about cash flow. Paying this loan off now will not save us much on interest but that’s not the point. Paying it off will free up $328.00 a month and that burden that has kept our hearts and minds hostage for the past 5 years will be gone. Paying off the Old Navy freed up $300 a month and saved us thousands in interest a year.
I also realized after looking at our cell bill that we were paying $26 a month just for protection for two cell phones. Oh yeah…you bet I canceled that real quick! Scott’s cell phone was just paid off this month and it’s 2 years old so if he drops it in the toilet we’ll just get another one. The payment for that phone was $30 a month. Hey, now look at that, we just had our bill go from $297/mo to $239/mo. Every little bit helps!
I had a feeling all last year and I continue to have it this year, the feeling I should pay off any loans that are attached to our house asap. I don’t know if it is the political climate or what but I am listening to that feeling. I paid off the home equity line of credit with a no interest credit card and now I want the regular home equity gone too.
Say Geronimo my friends! I’ll check back in soon. Hope your debt is shrinking too! -MM
One thought on “Not Impressed With Our Debt – Weeks 28-30 of 80- Home Equity Loan”
That freed up cash flow will give you the luxury of deciding what should come next. So very well done!