DEBT FREE in 30 Months - THANKS To PAMMY

[freedeal]

*****PAMMY THIS IS YOUR FAULT**** LOL - I am so amazed by what you have accomplished it got me thinking.

I have figured out that we can be debt free in a maximum of 30 months. Less if we really buckle down. This includes the mortgage but will take adjusting the college funding for our children.

First each child has $50,000 college fund. Total $100,000. This money is in regular accounts and mutual funds - we didn't put anything in actual educational accounts to get the tax breaks because we wanted to have it available to us if we ever needed it. It is in our names and not the children's names.

We can take this $100,000 and also do a debt snowball adding an extra $500 per month to what we are already paying over the payment and everything will be paid in a maximum of 2 1/2 years.

This will free up nearly $3000 per month once the house is paid for but will leave us to pay any college that scholarships don't cover. My older son already qualifies for a large state scholarship based on grades and SAT. Which will leave us to pay only room and board. This would be about $7000 per year. There is a possibility that some or all of this could be also covered by scholarship.

We could easily pay that and he could contribute with a summer job. My younger son will probably have even more scholarship opportunities as he will go to boarding school for science and math and they are offered full scholarships for in-state colleges.

So would you give up college savings to be debt free and just cash flow college?

[dcompton]

Hmmmm. Maybe not every penny of it, but it sounds like you could probably dedicate a very substantial chunk from it.

[pammy]

It's all my fault, hehe...

This is including the mortgage?? WOW!!! If it were me, I'd do it, sure. You can cash flow any help with no payments at all, couldn't you?? Wow, that's an awesome goal to aim for, I'm so happy for you guys!!! Just imagine the freedom and peace with no payments. *sigh* What an awesome feeling that would be. Go for it!!!

*disclaimer* This will really only work if all the family members are on board. Is everyone for this??

[Buckeye5]

First, how old are your children and are if they are older have they taken the ACT's or the SAT's. Scoring high there will give them all kinds of scholarship money. Depending on there ages, if they are still young, pay it off. Really I would love to be debt free, so I would pay it off and cash flow the rest of college. Also, just remember about funding your kids college degrees, you can't takea loan for your retirement.

[Telephus44]

Depends on a lot of things. Ages of the kids, as well as what plans you had already worked out with them (I knew what deal my parents had with me when I was in high school), where they plan on going to school, etc. I'm guessing that you planned on having $50,000 cover 4 years of college, so if you think you can pay $12,500 out of pocket for each year each kid is in college - then I'd do it.
Since the money isn't in education accounts, you're not going to get hit with extra taxes, so that's a plus.

[FrugalMomof3]

If it were me, I would surely do it! Think about all the money you can save once the mortgage and other debts are paid off? This money can be used to save for college as well, and 30 months will fly by in no time and you'll feel so great!

[PrairieRose]

Ok from having been there and done that in paying for college as the dkids went I say snowball and be done with it! You can easily pay for college after you're debt free. I'd not give it another consideration......just do it. WTG by the way .

[Cricketlegs]

Pay the debt and then snowball the college.

That is what I would do.

[frugalfarmwife]

Yeppers, go for it! And as Buckeye said, just remember, you can finance college but you can't finance retirement, so the kids DO need to help with the financial obligation!

kj

[Jaded]

That sounds great, but I wouldn't be in such a hurry! What can you do in five years if you use half of it?