What I did with my income tax refund

Posted on Mar 7, 2007 in Finances, Save Money | 5 comments

Ok folks here it is. I got my income tax refund back and I have decided to throw it at the debt snowball. I put one eighth of it away in the savings accounts and I am putting all the rest of it on the colt loan. Actually all of the money is in the high interest account that I have with Electric Orange for this month. I am trying to see how much interest that will be.

I know it will be just a few cents but since I already made the monthly payment before I got the refund in I just decided to keep the money in the account.

When it is time for the next payment I will send the check via Electric Orange and I will have just $500 left to pay on that debt. Wow!

At that amount I will be able to pay off that one debt by August if I keep paying just the monthly amounts. I have decided to take the money that I will be getting from subbing and pay extra each month.

I was aiming on paying $150 per month which means I will be done with that loan by the beginning of July…which is a much better sounding time to me. Depending on how things go with my finances I may be able to pay $200 a month and then I will be free to shake off the shackles of the colt loan at the beginning of June. I hope I get all that money in so that I can make that big $200 payment in April so that I can be done with that loan soon.

This extra money will have to come from the subbing and what I can make off Cash Duck and the other little things I have been trying. I welcome your words of encouragement and your prayers.

I will keep you updated on what I am able to do because I am REALLY excited about being free of one longstanding debt amount soon.


  1. Wow, that’s really cool!
    And just think. After that you can take the payment you were paying on it and snowball it onto the next one.
    It’s always a good feeling to knock out a debt. Especially a high interest one.
    Keep up the good work. And don’t forget to listen to Leigh Ann on the radio today.

  2. Yes Jagular. I am so excited that unless something goes really wrong (say a prayer) then I will have one debt knocked out.
    I am definitely waiting for the day when I can take that extra $100 to put towards the other debts now…especially the credit cards.

  3. Well done for having the discipline to put your refund into your debt – it can be so tempting to go out and spend it.

  4. I agree with Iva. It takes a lot of courage to put your refund towards the debt instead of spending it on something that you have been wanting to have for a long time.


  5. Yes it was difficult at first but then I realized that I by paying interest I was just paying for the same thing over and over so I had to give up getting something new to finish paying for something old.


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