Feb. 14, 2008
Down payment, or debt free?
Posted in Homestead or Bust
Each Alaska resident is eligible to file for their Permanent Fund Dividend, or PFD, each year. The PFD checks start going out in October. This year will be our first year that we are eligible. No one knows exactly how much the PFD amount is until shortly before the checks come out, but speculation this year is pointing toward $2000. Per person. Last year the amount was $1654 each.
Tonight my Hubby and I were talking and he suggested the idea of using our PFDs to become completely debt-free, rather than as a down payment as we had originally planned. Of course, we have until October to make up our minds. If we did that, it would push back the date of getting our land. Yet it would be easier to get the land.
So, what do you think? If you had approximately $8000-ish, would you use it to become debt-free, which is an awesome dream, or would you use it to make a down-payment on your own Little Slice of Heaven…assuming you have repaired all of your past credit woes in the meantime?
Comments
Feb. 14, 2008 - Untitled Comment
Posted by SisterLori
Blessings!
I am all for being debt free:) There's always next year for the land:)
God be with thee!
Sister Lori
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Feb. 14, 2008 - Untitled Comment
Posted by morningsunshine
debt-free! then it wouldn't be hanging over you like a weight.
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Feb. 14, 2008 - Untitled Comment
Posted by TheWedhornFamily
Happy Valentines Day!!!
Love
Charlotte
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Feb. 14, 2008 - Debt-free
Posted by Jonash2004
We are staying put for the next few years. Possibly until the summer of '10 on the chance that my parents might want to leave their farm then. (My dad just can't keep up with it anymore, he's in his mid-sixties - my mom just wants to wait for my youngest brother to finish highschool before they move.)
We'll have our debts gone (excepting our mortgage) in a month or two. Not that we had many to begin with, but it's so nice to be free of them, anyway!!!! Where we are isn't ideal. It's not even close. But the longer we stay the better off we are financially and the more we can save.
It's tough to stay, but I'm at peace with it.
Ashley
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Feb. 14, 2008 - Untitled Comment
Posted by mountainmama
We are in a similiar boat as you, except not in Alaska (I am jealous). We have decided to be debt- free before we decide on anything else. Happy Valentine's Day!
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Feb. 14, 2008 - Untitled Comment
Posted by CatherineAnn
Definitely debt-free!
Blessings,
Catherine
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Feb. 14, 2008 - Pay the debt!
Posted by Anonymous
I would pay off the debt. There are so many other things you will be able to after your debt is paid. What a blessing!
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Feb. 14, 2008 - debt free!
Posted by wstoller
It has been our experience that being debt free and building up savings before buying something ALWAYS goes more quickly then buying it with debt and then paying it off (takes FOREVER) - I vote Debt Free from past experience!!!
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Feb. 15, 2008 - PFD's
Posted by mdonohue
I would say to use 1/2 to pay down debt and put the other 1/2 in savings. You never know what is going to happen and having a chunk of money in the bank is good security. Here's to hoping the PFD checks are bigger than last year, one good effect of high oil prices. The legislature has been talking about giving all Alaskans a check to help alleviate high energy prices this year too - we will see if that gets anywhere...every little bit helps!
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Feb. 15, 2008 - Save and pay off debt...
Posted by Hisirishgem
Mdonoghue is correct.
Dave Ramsey always suggest paying yourself first for small emergencies and then paying off the debt. So take a portion and put it in your savings. DON'T Touch it!!
Then use the rest to pay on your debt.
It's always good to be debt free before we buy. I'd love to buy land or a home right now, but we MUST have our debts paid off. So waiting a few years to be free from Financial slavery is definately a goal I'm willing to attain!
Much love to you dear friend as you come to a decision.
Rebekah
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Feb. 16, 2008 - debt free?
Posted by canadianroxieg9
being debt free is nice and owning a piece of land is nice too...Question is if you pay off the debts which is great how long will you take to save for your land and how many debts will you incurr along the trail to the land...That is the hard part it is sort of like having a career in place debts paid off and a home before having children???We have eight children and are doing fine with the piece of land and small log cabin but the debts come and they go...God be with you in your decision
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