Friday, April 25, 2008

Debt Visualization

I was listening to Moneylife the half hour radio show by Crown Financial Ministries. On the April 23rd they talked about how to make a paper chain with each link representing a payment left on the debt. Mortgage, credit card, car, etc. place this in your bathroom or dining room, after each payment you can remove a link. If you are paying ahead remove more links.

Wow what a great thing to do.

From 2000 until 2006 I had an excel file that visualized the same thing, each debt in two columns, principle in one and monthly payment next to it. Each row was a month. Nancy thought it was horrible mess but it helped show how many years it would take us to pay off everything, and how much of what we paid was interest and how much was principle.

Our student loans should have taken us until 2012, cars until 2006, house 2034. The good news is we paid off the cars early, and when we sold the house we paid off the student loans. WE ARE DEBT FREE!!!!

Now this next step in my life I am trying to figure out if I can stay debt free. We still have a credit card, I used it this week to pay a $4000 travel bill. Good news the money is in the bank to cover that when the grace period is up at the end of the month. I would love to by this Christmas close that account. The challenge? am I willing to wait the many years it will take to save up to buy a house? Is Nancy willing to let me?

We have signed up to the fact that we will rent at least the first year after we return to the USA, and probably for a full year after we are settled. We pray that God will provide us the right job, church, friends, housing, school, dreams, in these months to come so that HIS WILL is done on earth, in our lives, and in our hearts.

I worry how different that will be from average, I worry how different that will be from easy, I am considering the cost and still I pray Thy Will Be Done.



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