Question: Why do you want to pay off all this consumer debt?
Answer: Because we want freedom. I added it up and if we had no consumer debt to pay each month that would save us $1,607.49 each month... Holy smokes if that's not a kick in the pants to pay this off as soon as possible I don't know what is. Because that is literally a mortgage payment and some change right there isn't it?!
Question: You realize you need to have a good credit score right?
Answer: From what I read..that seems to be inaccurate. Funny enough I was looking at my discover card FICO score monitoring they do for you just this week, and even they said: "Your credit score indicates to lenders that you're a good borrower." This seems like a backhanded compliment if I ever heard one. Can you imagine if someone said something comparable to you in person? I wouldn't take it as a compliment at all. Maybe we are so brainwashed in America because it seems like borrowing is just what you do. Read a little bit more here.
Question: Why would you want to pay off your mortgage? Don't you want the tax deduction?
Answer: When I entered an extra payment toward the principal of $1000.00 per month into the mortgage amortization schedule my mortgage holder offers we could be able to pay off our loan in 12 years instead of 30 years saving us $116,975.29. That amount is a ton more money than the small tax break we get. Read or listen to an explanation of this here.
Question: So are you telling me you will never take out another car loan?
Answer: Yes that's the plan... to never take out another car loan... to drive the cars we have until we can't drive them anymore. The reason being... the sheer volume of depreciation on a car is just crazy and really is like throwing money out the window. New cars lose 70% of their value in the first four years. Yikes! I'm still paying a car loan on a car that isn't worth what I'm paying. But it will be paid off soon so I'm going to push on through to the other side of debt freedom.
Here's a great read on the new car purchase. So yeah Bry and I already have a plan that we will put money away for a "new" used car once our debt is paid off for when the time comes.
Thank you for these questions.
~Have a blessed day~
