I DID IT!!!!

If you have been following my blog, you know that I was trying to purchase an additional investment property. I found a property, put in an offer and had the home inspection completed only to find out that there are huge problems with the homeowners association. I did not want to buy someone else's problems so I rescinded my offer. I was really bummed last night and today so to make myself feel better, I PAID OFF ALL MY CREDIT CARD DEBT. That's right guys. I finally pulled the trigger and paid off the debt. It was all at a low interest rate but I was still paying interest that I could be saving and investing.

One card had a balance of $3,150.00 and the other had a balance of $7,566.48 for a total payoff of $10,716.48.

Here is how paying off this debt will affect my future finances:

• Cash on hand - $31,498.28. Still alot of cash but as I have posted before, I have a mental need to have alot of cash on hand because I am scared of a major financial emergency.


• Extra cash - I will have roughly $400 left in my budget that I'm not paying out to the credit card company. I plan to add an additional $100/month to my freedom account, $100/month to my rental property acct , $100/month in additional principal on my mortgage loan and $100/month additional payment to my car loan.


• Non-Mortgage Debt - As of December 31, 2006, my non-mortgage debt decreased from $66178.97 to 47,816.38 for a change of 27.75%.


• Credit Scores - My credit scores currently are 707 TU, 706 Experian, 694 Equifax. I think my scores should rise at least 10-15 points. I will keep you guys updated.

I am headed over to NCN Network right now to update my debt totals. If you haven't visited the NCN Network, it is a site started by No Credit Needed to help everyone track their debt reduction progress. If you need inspiration to pay off your debt, be sure to visit and read everyone's progress.