It’s going to happen! The Beast (aka our Discover card) is going to be taken out! No, we didn’t have a secret money stash, win the lotto, or receive an inheritance. What we did have, however, was an item up for sale that finally sold.
As of this past Monday, our fifth wheel camper is no longer ours. Let me tell you something; campers are not easy to sell. This even with the help of someone who makes his living wheeling and dealing. We listed it for sale using a local business who sells boats, cars, campers, UTVs, etc. While we do need to pay a consignment fee of $600, I highly doubt we would have sold the camper on our own. It had been up for sale since late May, and even with slashing the price twice, all we were seeing were tire kickers. Until a check was in hand, I didn’t want to say anything. That, and I was starting to lose hope it would sell.
As for the check, we will have that once it clears. The cashier’s check was made out to the business, so now we need to wait for that to clear and then we will receive our check. I’m not concerned about getting our money. This guy has been in business for over 40 years and has an excellent reputation. Plus, of course, we have a paper trail. So, we are looking at some time in early October for The Beast to meet its demise.
In addition to paying off The Beast, we will have about $3,500 to use toward another debt. I say ‘roughly’ because we will use part of the proceeds for the snow tires we have ordered. While we do have enough in the bank to cover the cost of the tires, the account is already so anemic that we feel better about paying for them with the money from the sale of the camper. We also intend to give some to a charity, but that is a topic for another day. So then the question of on which of our three remaining debts best to use that $3,500.
I realize that mathematically the debt with the highest interest rate (Visa at a fixed 5.99%) makes the most sense. But since for us, getting out of debt is more than just the math, we took that out of the equation. That leaves us with Citi with a $6,380 balance (0% rate expiring next June) or our car with a balance of $5,028.
Our first thought was to apply the $3,500 to Citi, primarily because of the expiring interest rate. As of today, however, we are now leaning more towards using it towards paying off our car. We should be able to knock out what will be the remaining balance ($1,528) within 2-3 months, keeping our momentum going. I further feel that the pressure of an expiring interest rate is not necessarily a bad thing. Plus, once The Beast and the car payment is gone, our snowball will have gained tremendous traction. It’s probably good that we will have a week or two to mull things over!
If you were in our situation, what would you do?
If I were you, I’d tackle the car first. It’s a really nice feeling to get a free-n-clear title in the mail after you paid off a car. (I know this because earlier this month we paid off our Ford, yahoo!) The feeling makes you silly-happy and even more eager to pay off the next debt!
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Keeping up the momentum is a huge part of this journey, so I feel you are right! CONGRATS on paying off your Ford! Awesome!
I think I’d pay down the car. Use the snowball from paying off the beast towards the car and get that one gone asap, too. Congrats on selling the camper. We looked at some used online, thinking maybe we’d live in one of them, instead of the shop, but the prices were still pretty high for something decent and we didn’t want to have to deal with trying to re sell it. Now that you say how hard they are to sell, I”m glad we didn’t get one!
Paying off the car does seem to make the most sense. We will have a decent size snowball to pay towards finishing up the remaining $1500. You saved yourself a lot of grief in not buying a camper and living in the shop, plus likely (even with all your DH’s stuff) still have more living space while your house is being built. I honestly had no clue just how hard they were to unload.
If it’s just between Citi c/c and car loan, I’d do the car. Then throw extra at Citi once the car is gone so you get that paid off before the rate expires.
Too bad you didn’t tell me you were selling a camper as we have been tire kicking those….lolz
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The car seems to be the consensus. With eight months remaining to pay off the Citi cc and a bigger snowball, it shouldn’t be a problem to knock it out before the rate expires. Sure wish we had something else to sell to move it along even faster! Lol I am so sick and tired of this debt and just want it gone!
With all the tire kickers we had, you would have needed to take a number! I was tempted to start charging admission for those wanting to see the inside of the camper. Lol
Wow! You are killing it! I agree with the others, the car. It will be so great to drive a fully paid off car. And you will get to the CC next. Things must feel soooooo much lighter with all of the progress you are making. Crossing those line items off the list must be so satisfying. Just the fact that you named Discover The Beast, gives an idea of how much weight it had for you. As the weights fall and it feels lighter, the progress multiplies even quicker. ( At least it worked that way for us.) Looking forward to celebrating your new numbers with you!
Thanks! We are just so sick and tired of all this debt. It has to go and I refuse to let anything stand in our way…even if it means selling things off! Cannot wait to cross the finish line!
That is wonderful. Congratulations. I agree with you. I would pay off the car first. By the end of the year you will have 2 more debts gone. You and your husband are the beasts. Not the debt.
Haha! Thanks for the vote of confidence! Not sure what it is about this journey, but with every passing month, I feel even more sick and tired of our debt. I want it gone now!
That is so awesome that you are getting ride of the beast. I agree with the comments above, I would get rid of the car payment. Cars are such liabilities (gas, insurance, maintenance), it’ nice not to have the payment for it as well.
I’m excited to see it gone…all of it!
I am torn here, but I think paying off the car makes the most sense for your plan. For me, I am working the snowball just as Dave Ramsey lays it out.
Actually, after The Beast is paid off, taking the debt smallest to largest, the car is next in line. Paying off The Beast is a must as the zero % interest rate expires in November.
I’ll join the crowd and say, “CAR!” Like you said, after 2-3 months the car will be paid off and you can snowball that money onto the Citi.
However, just to keep it interesting, here’s another line of thought: What if you threw that $3,500 onto the Citi and kept paying it down before June? Because when the interest rate does kick in, I imagine it will only affect the remaining principle. If you were able to kill off $4000-5000 on that thing, and only $1K+change was leftover, the interest rate would have almost zero impact on your total. Then you’d have that to add to your snowball and the car payment would evaporate quite quickly.
Either way, I love that you’re taking that $3,500 and throwing ALL of it at debt. It could be so tempting to reward yourself for all the hard work of selling the camper, but you’re committed to the debt-free dream. Way to go!!!
Thanks for your comment. Interesting thought on the Citi card, but we will go with the car. To an extent, I also (cough) want the pressure of an expiring interest rate. Strange as it may sound, I think it will help us push harder to get it paid off! No rewards until the debt is paid off and then we shall see! My hunch is seeing our savings climb will the best reward of all!