Down Mulberry Lane

Debt-free Journey...Federal tax refund

I just checked our bank account and surprise, surprise!  We got our federal tax refund back for 2007's taxes.  I was so excited, I paid bills tonight and guess what... it is all gone already!  LOL. 

I am not going to be distraught over that fact.  Instead I will praise God that we paid off our Discover card in full!  While that is a relief, that wasn't ever in our budget, so it did not help the initial plan to get back within our budget.  But it did help me not to have to depend on Dh's overtime as much anymore. 

Next on our to pay off list is our Sears Credit card.  That is sitting at $8341.06.  This is at a low interest, we took advantage of combining bills at one time with lower interest offers.  But it is now time to pay it off completely.  I put $2000 of our tax refund onto this amount, so I am down to $6341.06.  We plan to put money from the tax rebate on this card as well, whenever that comes.  And our overtime money will also go towards paying off this debt as well. 

My next project with our finances is to come up with a budget and make accounts to accomodate the budget.  We are currently in process of refinancing our home.  When that is finished, we will be settled on monthly amounts of all our current bills and I will be able to set up a budget that is current.  We've been switching funds from one thing to another in effort to save on interest that we are paying.  I've found that hasn't really saved me any money in the current state of affairs, but we will be saving thousands from interest paid had we left it the other way.  But since we (both Dh and I) agreed to get debt free... we have been trying new ways to manage our money and I tell you monthly it changes because we find a better deal with interest or a better way to pay for items.   Making up a budget hasn't been easy, especially with all the financial changes.  We hope to settle our refinance of our house shortly and hopefully that will be the last of our moving around of the finances for a while and I will be able to concentrate on a budget and keeping it, rather than moving funds here and there. 

It is exciting to see that debt-free counter moving down... Tax refunds can make a big difference if we are faithful to apply it to debt! 

Warmly, ~Melissa

<i>Untitled Comment</i>

7:58 AM, May 4, 2008 .. Posted by morningsunshine

I notice your debt ticker says 175,000 - is that your house as well, or all "consumer" debt?

*** This includes our house payment... all debt that we owe out.

Warmly, ~Melissa

Edited by mulberrylane on May 4, 2008 at 10:02 AM

Untitled Comment

2:09 PM, May 4, 2008 .. Posted by gabbie427

Congrats on gettting your check and using it wisely. Also congrats on getting the credit card paid off. We have all debts paid off except our house, and are planning on using it for repairs on our house and then putting this house up for sale to buy one in the country (or at least a better neighborhood)

God's Blessings,
Amy Jo