Financial Fasting for a Year!

Day 1 / $0 Paid  /  $95,152.22 until freedom

This must be crazy!

I have a Home Equity loan that I would like to pay off along with a couple of other bills while I am at it.  I came across a blog the other day about a man who paid off his student loans in 7 months!  I couldn’t believe it.  I read through his blog and was amazed.  I became very inspired and decided to try and do it too.  However, it will be a little bit more challenging for me.  This man was single and didn’t have anyone else to worry about but himself.  I am married with a 2 year old daughter.  I discussed this with my husband briefly the other night and he agreed to go forward with this challenge.  We talked about starting it this September so we can enjoy our summer but why wait that long?!  Summer is the perfect time to start because we can be outdoors and do lots of FREE stuff.  There isn’t much television on anyway.

My husband, Ben, works full time.  I work part-time.  We aren’t into our eyeballs with debt and we are currently very comfortable as far as finances go.  But!  It would be better if we paid off some big debt and have even more freedom.  I feel that my daughter is young enough right now that she won’t even realize that we are on a financial fasting.  I bought way too many presents for her last Christmas.  We have several still wrapped up.  We didn’t even give all those to her for her 2nd birthday.  So, we are done with Christmas shopping for her this year!

Today is 5/23/12 and our completion goal date is 5/23/13.

Here We Go

We bought a house in 1997.  We took 2 loans out for it.  We took out a primary and a interest only loan (I know…big mistake!).  After a couple of years, I looked at our second mortgage loan and wondered why it hadn’t moved.  Duh!  I realized it was an interest only loan.  We were young buying our first house and we didn’t get the best advice on how we should go forward with the loans and all.  We refinanced our second mortgage into a fixed rate for 15 years.  That was several years ago and I feel that our loan has not gone down a bit.  My goal is to pay this sucker off!

We own 2 cars and have always had only one car payment.  We currently have a loan for our Toyota 4Runner.  We owed about $7,000 on it.  We sold my VW Jetta to my brother.  We are receiving monthly payments from my brother that just started this month.  Since we sold the car to him, we bought a 2011 Scion for my husband to drive.  Instead of getting a second loan, we refinanced the truck and put money from Ben’s saved car fund toward this purchase.  So, all in all, we have one vehicle loan.

Our credit card interest rate went up to around 17%.  We decided to cancel this credit card and get another with no interest for a year.  We kind of went crazy and racked up the balance on the new card.  I paid off the old credit card last month.  We also had a line of credit that we paid off last month as well.

So, here is what I would like to pay off in year:

This amount will be a tough feat but we’ll see what we can do!

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The Challenge

I plan to start a financial fasting for the next year!  I want to pay off a few large debt so my family and I can have a little bit more financial freedom.  It was be a huge challenge and I hope that we can get through the next year with some sanity left in us.

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