We Paid Off the Car Loan!!!
There’s been a lot going on with the blog these past few weeks and I didn’t find time in June to squeeze in an update of our debt reduction. So here it is. As you can see by the updated chart, we’ve paid off the car loan. It feels really great to only have the one bad debt now, the SUV loan. But before we discuss that, let’s take a second to celebrate the payoff of the car loan.
How We Paid it Off
When we last reviewed our progress (May debt chart update) I had around $3,500 left to pay on the car. Since then, we were able to pay it off completely thanks to our economic stimulus check, our property tax savings (which we just shifted to an ESPP), and a small bit of our emergency fund. Wow, talk about creative finance. 
It feels great to have this done and still be in a good position with our short-term savings.
What Debt is Next?
As for the remaining bad debt, the SUV loan, we plan on aggressively paying it off over the next 2 months so that we’re completely rid of our bad debts prior to Mrs. PT quitting her job and going back to school in the fall. To accomplish this we’ll have to utilize some of the blog income that’s finally starting to trickle in, as well as Mrs. PT’s last few paychecks.
As always, thanks for letting me share this quick debt target update. It keeps us motivated and accountable to get it finished.
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HOORAY! That’s a wonderful accomplishment!
I plan to tap my emergency fund for my last six car payments as well. I figure, if I have a six-month emergency fund, then I have six months worth of car payments in it.
No more car loan, no more need for that money in the E fund.
Way to demolish that loan and best wishes for tackling the SUV!
Way to go!! We are in the process of knocking out a huge chunk of consumer debt right now – it should be paid off in about a month – then only the student loan left!! I can’t wait!! We should have a party to celebrate!
Thanks, yall. Good luck in your goals as well.
Congrats on finishing off the car debt! I was so happy when my car was finally paid off. It meant I could take the payments and move them into savings!
YAY! I remember how great it felt when we paid our mini-van off in January. Congrats!
Way to go! I sold my car in March and had a similar feeling, thinking about how I wouldn’t have to worry about future issues with it (ie, parking tickets!).
Fantastic news – I am really pleased for you!
Congrats! I’m so happy for you guys.
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Feels great to take one out of the bank’s inventory, doesn’t it? Way to go!
One thing I’m confused on: You talk about paying off the remaining “bad debts”. Were you behind on these?
@NtJS – Not behind. For my purposes I define “bad debt” as any consumer debt that is not paid of within the no interest terms and is incurring interest charges of 6% or more. So, in our case, the car loan debt was “bad debt.” I’m not referring to the accounting term of bad debt. Visit this page for more on “bad debt”