Prime Time Money

Written on September 18, 2008 – 9:21 pm | by PT |  Print |

Our Current Debt - As of September 2008

It’s been a while since I’ve updated you guys on our debt reduction situation.  It’s not that I’ve been avoiding it, it’s just that nothing much has changed on the balance since last time. Previously (during the June Debt Target Update) I said that,

“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.”

Well, even the best laid plans sometimes fail.  The grant for the program she’s attending fell through and we ended up having to pay for her school tuition.  Would have been nice to put that chunk of money towards this debt.  Oh well, at least it’s education expenses.  It will repay itself.

Our Future Debt Reduction Plans

Well, obviously our goal is still just to attack the SUV loan.  It’s our only “bad debt”* left.  It’s just we’ve had to dial back the time table somewhat.  For now, we’ll just have to wait and see.  With a baby on the way, and us relying on one income now, our savings goals are taking precedence.  Blog income is starting to pick up.  Maybe I can start throwing some of that money at this debt.  We’ll see.

Thanks for letting me update you guys.  You’re accountability helps so much.

*For my purposes I define “bad debt” as any consumer debt that is not paid off within the no interest term AND is incurring interest charges of 6% or more (after tax considerations).  This is the type of debt I now try to avoid.