Well, one week of being consumer debt free in the books. And now I am ready to move on to my next goal. However, it’s been a bit of a roller coaster ride over here due to things beyond my control. So I still don’t have a solid plan for this yet, but wanted to let you know what I’m thinking and get your feedback.
You might recall that I have a debt in my name that I do not pay…my ex-husband does. (This is spelled out in our divorce papers as well.) I got a lot of grief over this last fall, so let’s not re-hash that. This is just how it is and it works for us. The monthly payment is $246 per month which he pays me and then I pay the lien holder. This makes it comfortable for me, but does not work well when trying to finance say a house as they want to see that he has paid the loan directly for at least 12 months. So, I want to get rid of this debt.
My plan was that he would continue paying his regular payment and I would put my extra payments towards it, tracking those of course, until it’s paid off and then he could just continue to pay me. Make sense? So I was all set on this course of action, until he called and said he wanted to sell the vehicle, yada, yada. Ok, great! Let’s do that.
Then a couple more weeks passed and he called to say, “hey, I’m moving to another state within the next 30 days.”
Then a week after that, he called to say “hey, I’m going to need to keep my truck to drive to my new state.”
Ok, see where I was referring to the roller coaster ride? So I am now back to my original plan, with a small caveat. If he is taking the car out of state (a 23 hour drive from me,) but it’s titled, insured, etc by me, well it gets a bit complicated. So I’ve got on my to do list to call my insurance company and check on the nuances of this situation. But now I’m especially confident that paying off this debt is the best next step.
Just to make sure you have all the information…my only other debt are student loans with a balance right around $30K. Ok, now go, what are your thoughts on this next step.
Oh, one more thing…timeline for this…end of this calendar year for payoff, with me loosening up on my budget just a bit.
Ok, now go…