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Personal Finances / Credit Cards and Consumer Debt
|Subject: Four years later||Date: 12/29/2013 10:45 PM|
|Author: determinedmom||Number: 307628 of 308480|
I just remembered that we paid off the last of our consumer debt in December 4 years ago.
So I thought I would post an update.
We still have no credit card debt. I've paid no credit card interest since we paid off the last of the credit card debt.
We ended up having a fairly complicated journey to our current home. The worst part was when we downsized and sold our large house at a loss (that was almost 3 years ago). But if the dust cleared we have a great much smaller house with a small mortgage at 3.49% rate. We really debated whether to do the loan at all but felt that the rates were such that it made sense. We may pay it off at an accelerated rate once the kids are gone.
DH retired in 2010 and I semi-retired, still working very part-time.
We currently have 2 kids in college. We saved a lot by our son going to community college for his first two years of credit and then he has been commuting to a local state university. He will move to a dorm next fall. Our daughter is not interested in a 4 year degree and is taking a more career oriented course of study at the CC.
This last will probably have some people convinced that we are headed to perdition. But, we actually have a car loan. We took it out in a year when we were adding a car (not just trading in a car due to kids driving). To take the money to pay for it out of retirement funds would have cost a lot in taxes as we were in a non-typically high bracket that year. Since then, we have the money in a taxable account and could pay off the loan. But, given the very low rate and the investments we had the money in, we didn't see that it made much economic sense to pay the loan off. And, as it turns out we've certainly made out better not paying off the loan than keeping it. We continue to monitor the situation and could pay it off if we chose to. It is not a large loan.
We still use our credit cards all the time, particularly our Amex Blue Cash. And, we still pay them off fully each month.
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