So just as I’m starting to pick up some great momentum in the debt repayment department (try saying that 10x fast!), that progress is going to be put completely on hold for the next few months…hopefully two months at the most, or even just a month and a half!
March/April probably wasn’t the best time to schedule a move to a new place as we are doing a little vacation/race trip to New Orleans and Florida the first weekend of April…AND I probably owe $2000+ in taxes on April 15th. 😦 So a couple days ago I just put down a big security deposit of $1500 (which is more than the $600 I put down for our current digs, all of which we hope to get refunded), in addition to moving expenses and the “overlapping rent” while we give ourselves time to move things 5 miles up the street.
Luckily we bought our plane tickets for the trip already (just need hotel accommodations which will be split with friends). Also March is an “extra paycheck” month, and this Friday will be my first paycheck post-10% raise. Mr. Bacon also realizes we don’t need to hire movers, maybe just a small moving truck for the couches, bed, and big bookcase we have. Since we have several weekends of “overlapping rent”, that gives us time to move the smaller things a little at a time. I also have over $2000 in the emergency fund, and it looks like it’s time to pull some of that money out.
I’m also 4 months ahead on the portion of the Sallie Mae loans with a higher interest rate, so I cancelled my automatic debit payments for that until I get back on track. (Unfortunately I then realized that this removes the 0.25% interest rate deduction for automatic debit, but I’ll get back on that program ASAP.) So the next couple months, I’ll only be paying the minimum of $242 for the lower interest loans so that I have more cash to pay for these moving expenses and taxes.
This of course means the possibility that my total loan amount may actually go UP about $60 this month, as I’ve been paying about $300 in interest each month. We’ll have to see. I’m hoping it will only be February and part of March I have to do this, and that I can still put at least $1000 down in March. Then I’ll get completely back on track in April!
In the meantime, I realize I’m lucky to have a job and income that allows me to move my money around like this, and I know I’m still ahead of my original uber-conservative game plan…for now. Being a couple months behind will put me behind that original game plan, but I can play catch up once we get over this hump. More income + decreased expenses means I can contribute more, about a $1900 decrease in debt each month (more than the original $1500), which will have me back on track to be under the $80k mark around July.
Anyone else have to pull out some emergency funds and temporarily stop debt repayment?
The Great Bacon Payoff 
My emergency fund is very small and I didn’t have to use it since the inception of my emergency fund last year. But I almost I did when I scratched a car last year. Thankfully it wasn’t big enough and the car owner told me to forget about it. I hope I won’t have to stop or delay my debt payment, but if emergency happens, you just have to deal with it. You’ll be back on it soon and do even better, so don’t feel bad about it.
Thanks! I’m happy it’s there for sure, but I was saving some of it for car repairs…guess I should have a separate car repair fund maybe.