Some days that I feel that total debt freedom is so close; on other days that I feel it is far away. I paid off my credit cards one at a time-the highest interest rate first so I got the biggest bang for my buck. I had no problem paying off my remaining credit card debt with my tax return and it was a sizable amount.
The thought of sending double my normal mortgage amount is paralyzing. I will not be paying more now than I did when I met credit card debt head on. I think it is the fear of the next two years. Paying the debt towards credit cards was instant gratification — a short term victory. I did it and I was done with it.
My mortgage payment used to be automatic. I signed up for 30 years. I don’t want to do it anymore, and I will send double my monthly payment. I can rationalize that and I can afford it. I have an accounting background and I understand it. Doing it is something else. It is a “what if” moment. What if there is a tornado; what if the furnace stops; what if there is a fire. I do understand that if the “what if” comes true, I am much farther ahead than if I had not doubled payments. It is just intimidating.
Part of my paralysis on payment is my acquired mortgage company. I signed on with a local bank and my mortgage was sold 2 or 3 times since that point; it is now with a consumer unfriendly bank. You can pay ahead electronically, but you can’t allocate your payments towards the mortgage balance instead of interest electronically. The turn-around time for a payment by check with this corporation means getting your payment by check with a payment coupon submitted at least 10-16 days ahead of time-and that was before the USPS implemented its slowdown. If you pay extra in one month, it does not reduce your next month’s payment. I think that mortgage payoff with some of these consumer-unfriendly companies should be an Olympic Event.
The good news this week?? Because of my credit card payoff-my credit score leaped!!! It actually crossed the Grand Canyon!! It increased by 38 points. Seriously-pay off debt!! I am firmly entrenched in the excellent zone and I plan to take up permanent residency in that zone! If there is a natural disaster, I am feeling good.
Image: Philo Nordlund, via Flickr