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I am so excited to be able to say we have paid off not only our first but our second debt as well. And in the process, we got rid of 15,095.00 of debt!
How did we do it?
Well, it’s kind of complicated-
First, we bought a “Dave van” with a small personal loan, a 2005 Honda Odyssey that is in really good condition actually and I am hoping can last us well beyond our debt free journey.
Then, we took both of our vehicles to Carmax. We sold my 2010 GMC Acadia and the Hubs’ truck. My Acadia was paid off, so we used what we got from it to pay what we were upside down in his truck.
We then had a bit left over, so we used that to pay off our smallest debt, the Hubs’ new iPhone.
So yes, we did semi use debt to help us out of this situation. Dave has said this was okay before in order to get out of a vehicle you are upside down in. And the loan is actually less than the amount we had to pay to get out from under his truck.
Some might ask why we didn’t save up each month to pay for the Dave van in cash, the answer is because his truck was costing us almost 900.00 a month between the payment and insurance. You read that right, 900 a month. We were having trouble making ends meet and that truck had a lot to do with it. It was seriously hindering out debt free journey.
This is why we also went to Carmax instead of selling the vehicles private party, which is something Dave also recommends. We simply could not wait any longer to get them sold.
Now we will take what we were paying on that truck and pay off our other debts, including the one we just took out, a lot faster instead of just treading water.
So here’s to progress! Now let’s see what we can do next month!