We’ve made a decision to stop our debt snowball — temporarily

January 18, 2008 at 1:12 pm 3 comments

To be honest, it wasn’t a hard decision to make. Currently, we have about $30,000 left in two student loans. We’ve been attacking mine aggressively, since mine is the smallest with $9,000 remaining. In fact, we planned on having it paid off by August. But, things have changed.

Now that we’re expecting, we’ve had to take a look at our options. I’ve heard Dave Ramsey recommend to folks that are in similar positions to stop the debt snowball and start saving as much money as possible to prepare for the baby. He’s said this before, but now that we’re in this position, we had to decide what to do. And, we’re going to do just that.

Our plan is first, to stop our debt snowball and begin to stockpile as much cash as we can until the baby is born. Mainly to cover us in case of any unforeseen emergencies that may come up during the pregnancy and labor/delivery.

If nothing too crazy happens with the baby, we’re then going to drop a lump sum onto the debt snowball (leaving our $1,000 baby emergency fund). In essence, we’re simply pausing our debt snowball until August, and hopefully, we’ll be able to pay off my student loan and a small chunk of my husband’s.

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Entry filed under: Budgeting, Debt, Emergencies, Saving and Investing.

Mutual funds run by insurance companies aren’t very good Recession? I say hogwash

3 Comments Add your own

  • 1. Brainy Smurf  |  January 18, 2008 at 1:44 pm

    I do believe congrats are in order! :0)

    Reply
  • 2. chaka42  |  January 18, 2008 at 4:04 pm

    Thanks Brainy! We are very excited!

    Reply
  • 3. moneychallenge  |  January 18, 2008 at 5:11 pm

    I think that’s a good plan. And congratulations!

    Reply

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