I live, write, and garden in the PNW with my husband of 28 years, disabled daughter, adult son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!Do you think it would make more sense to me to try to pay off the mortgage quickly or to pay off the 0% interest credit card? The plan has been to pay off the card, but I ran the numbers and if I used the money I had planned to use for the Chase card and continued to pay minimum payments on it and instead threw that at the mortgage, I could have the mortgage paid off by the end of June.
The Chase card is at 0% through the end of 2013. Acutally I think it is until January 2014. And then with no mortgage to pay as well as all the extra money we were throwing at it, we will be able to have that credit card paid off by the end of the year, while it is still at 0%.
Part of my hesitation is psychological. For so long my goal has been to pay off the credit cards. It's been my number one priority. I am not naive enough to believe our house will sell quickly once it goes on the market in spring. So it seems like it would make things a lot easier if it is paid off when it sells, one less round of paperwork. Plus the mortgage is at 5.5%. So it seems silly to not take care of it first.
No matter which way I do it, they'll both be paid off by the end of the year. How do I get past these psychological barriers? Common sense me, people.
I've Been Thinking--Mortgage vs. Final Card
January 18th, 2013 at 09:46 pm
January 18th, 2013 at 10:04 pm 1358546696
I think there's no wrong answer, so it's more what you think will be more psychologically satisfying for you.
January 18th, 2013 at 10:22 pm 1358547775
However, I'd almost lean towards paying off the mortgage. You'll pay less interest and have it paid off before you sell. If you sell before you pay off the card, you could put some of the proceeds to the card, and wouldn't be out any extra interest since your card is a 0%.
It really is a matter of preference since they will both be paid so soon! Let us know what you decide.
January 18th, 2013 at 10:52 pm 1358549523
Paying the balance off when you sell the house is really no big deal. I can't imagine it complicating things in any way that you would notice. Except having to provide a mortgage statement so it gets paid off in the process (maybe a couple of more forms to sign?). I almost think it would be easier just to pay it off when you sell the property. Just take care of the title and mortgage legalities in one fell swoop.
January 18th, 2013 at 11:45 pm 1358552733
1. Build Emergency fund($1000)
2. Pay off debt excluding mortgage
3. Build Fully Funded Emergency Fund(3-6 months of living expenses)
4. 15% to retirement
5. Save for kids college
6. Pay Off Mortgage(that's what step I'm on)
7. Live like noone else
Alot of people do steps 4-6 at the same time but as others have pointed out this is "personal" finance so it's up to u. What a great position to be in!!
January 19th, 2013 at 12:07 am 1358554059
ETA: Unless there was a cash flow problem. If I had a cash flow problem, I'd pay towards the one which would be gone the quickest. You don't have a cash flow problem.
January 19th, 2013 at 12:20 am 1358554813
MM, I pretty much figured that was what you were going to say.
January 19th, 2013 at 12:46 am 1358556393
January 19th, 2013 at 01:48 am 1358560136
January 19th, 2013 at 02:26 am 1358562389
January 19th, 2013 at 03:07 am 1358564844
January 19th, 2013 at 10:42 am 1358592175
January 23rd, 2013 at 12:24 pm 1358943845