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Originally Posted by amberbamber
Well, here's an update. I received my cash out payment from my whole life insurance today. It was 2097.and change. I am applying that to my CC tomorrow so I will have a balance of 1641.43.
Also, we've already got our term life insurance set up. I got $100,000.00 and my Dh now has $500,000.00 Overall our savings are around $175.00 a month just in the life insurance. Plus we stopped contributing to the kids 529 plans also, so that will give us another $100.00 each month. I am excited at the prospect of seeing this CC disappear!!!!  |
CONGRATS
Cashing out our Universal Life Investment (scam, very similar to whole life) is what helped us get a super fast start on debt reduction.
At a future date you may want to up your term insurance another 100 or 200 thousand. It is cheaper for females and if something were to happen to you your DH would either have to quit working or find someone to take care of the kids.
By the time your DH gets his bonus you should have a pretty good start on budgeting and paying off some of those pesky debts.
Are you still planning on selling the house?
What are your options with the leased van?
I still think you have a shot at being debt free in 12 months if your DH gets his bonus, you sell the house, and the lease goes bye-bye! Selling the house gets you 15-18k profit after realtor fees plus the monthly savings on payment vs rent. Bonus will pay off several debts and you won't have to set aside this money for the next year to make your monthly payments as you have in the past.
If you still can't get out of the van lease some how some way you will have $800 rent + lease payment + $800 monthly bills in expenses which does not leave you a whole lot for food and debt reduction.
The van, while reliable and safe is my deal breaker for me personally. There is no way a vehicle choice would win out over selling our house where we have so many memories of raising our kids. Is our house perfect...not hardly! Will we move someday...perhaps. But we want that choice and not let our bills decide that for us. That is just my opinion and thoughts on the importance of home vs vehicle.
Around here there are some superb SUVs for under $10k and have lots of life in them! You may have a repair bill or two, but the huge difference in payments will easily fund any repairs. If you are totally worried about the repair expenses you can buy those insane extended warranty policies.
Congrats again on your progress