How I Save Money.net

Tips and tricks to save money, manage credit and reduce debt

Finances

What I did with my income tax refund

March 7, 2007 by Lulu in Finances, Save Money with 7 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.


7 Comments

  1. JagularMarch 7, 2007 at 11:25 amReply

    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. lulugalMarch 7, 2007 at 11:38 amReplyAuthor

    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. Save Money » Blog Archive » Save or Spend.comMarch 7, 2007 at 5:27 pmReply

    [...] or Spend.comMint Credit Cards: sponsored postCommenting on commentsLink love for todayWhat I did with my income tax refundSpent $2.25 todayCreditol…the pill that fixes your [...]

  4. Save Money » Blog Archive » Vote for me at saveorspendMarch 9, 2007 at 9:58 amReply

    [...] Hey this is just a friendly reminder to head over to http://www.saveorspend.com and vote for my article on what I did with my income tax refund. [...]

  5. IvaAugust 7, 2007 at 9:10 amReply

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

  6. marieAugust 7, 2007 at 10:21 amReply

    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.

    Marie

  7. LuLuGalAugust 9, 2007 at 9:31 amReplyAuthor

    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.

Leave a Reply

Feed Count
How I Pay My Bills
Sitemeter