This has been one of those days that I have been waiting for – a day where we were able to make a significant dent in our debt!
I never thought I’d be happy that our AGI (Adjusted Gross Income) went down from last year, until I realized that our tax bill was also less than last year (even though our withholding was about the same) and that it would result in a large federal refund. So once we got the notice from the IRS and the state about processing our returns, we started planning how we would be applying the money to our debt (this is where it gets exciting).
So, today, we paid off:
We are now down to 4 debts total! I’ll post the real numbers at the end of the month, but we just paid off over $6,000 of debt in one fell swoop 🙂
This feels absolutely amazing and I’m so glad we made the tough decision to follow through with our debt reduction instead of what we might have done in the past – buy fun things and go on vacation.
Now, MSN Money tells me that our debt-free date is…Jan 24, 2012 – that’s less than two years!! But I tell you what; I think we can do it in less – I think we can get there by Nov 24, 2011 – 1 year, 8 months.
How did you spend your refund?