Exciting news today: for the first month since November 2007, I am not sending a $111 car loan payment to my credit union! The bill would normally be due today, but I don’t have to pay it. I’m thrilled.
In the beginning of this month, I looked at what we had left to pay on my Subaru ($311.87) and what we had available to pay down debt in June (including Ben’s monthly bonus), and realized that we could make that $312 payment that very first week (which means we still have $100 to put toward our debt paydown goals this month).
So, I scheduled the payment. (God, I love online banking.)
Ben’s response when I texted him from the coffee shop where I was working:
Me: I’m about to pay off the Subaru.
Ben: Nice! I’m just about to leave the house, I’ll let you know if it goes up in flames as I drive away 😉
Having scheduled the payment, I then immediately pulled up my budget spreadsheet and determined the best place to reallocate those funds.
I ended up putting $55 into Savings each month, and rolling the remaining $50 into the pool to pay down debt (or in this case, build up our emergency fund before I go back to school). It’s not quite the Snowball method, but I feel happier having something going into general (non-Emergency Fund) savings.
The best bit? We got our title from the credit union in the mail last night. It’s really official; we own my car.
Now, I just have to decide if we want to keep the insurance on my car the same, or change the coverage because we aren’t required by the lender to have a certain level of coverage. Changing the coverage could potentially save us more money, but our insurance costs are pretty reasonable at the moment, so I don’t know. I think a call to our agent is in order.