My hearth is so hectic right now that I am having a very hard time deciding what my Hearth goal will be for this year. On one hand, moving into a new house, I can think of a million possibilities. However, we don't actually have that house yet and it seems like making major plans associated with it might invite even more bad luck, so my goal is going to have to be something I can do wherever my hearth happens to be.
After much thought, I've decided to reduce my debt. This seems rather daunting as I take on the biggest debt I will ever take on in my life, and as I take on the rather expensive responsibilities of homeownership, but I feel that this is a long-term action that will benefit my family immensely.
Specifically, I have identified 3 debts to eliminate entirely in the next year.
$2,000 to the hospital for an emergency room visit
$3,500 credit card debt
$4,200 car loan
These are actually not a big deal. If I continue to make the minimum payments on these, I can be done with them in a few years. However, if I pay them off this year, I will save money in interest, and have an extra $315 per month to put toward my mortgage and student loan debt, or to spend on things like gardening supplies, lumber, and livestock to increase our self-sufficiency, which is my ultimate goal.
According to my math, in order to pay off all of these debts in 1 year, I am going to have to come up with about $800 per month.
Can I do it?
Well yea, sure I can. I just have to figure out how.