Big snowball!

We got our tax refund last week. Now, we’re pretty savvy and don’t “donate” more to the IRS than we need to. We do take advantage of the adoption tax credit, and deductions for higher-than-average charitable giving. Our tax return was over $10,000, and there’s rollover credit left that we’ll claim next year. Talk about a “snowball.”

With this we paid off two credit cards, made a substantial payment on another and have a little left over for savings.

When I heard this week that many families who adopted from our agency are being turned down for their interest-free revolving loan program due to lack of funds (apparently many families have stopped paying due to hardship) I was sad.

I wrote a check for our balance $2,500 and drove it to the office the same day. Our loan had been $4,500 and we’d been paying back at $150 per month steadily.

This means I’ll be able to snowball the $150 per month in the future towards our remaining credit card debt, and that other families can benefit from the money we had outstanding on the loan. This is how real credit should work in my opinion.

I know I paid off an interest-free loan before an interest-laden credit card, which is rather foolish, but to me on this matter, it’s about principle, not principal.

Just my $.02 for today… or $2,500 as the case may be.

PS! it feels so good to be free of a debt like this that I’m actually thinking of paying off my student loan early too. Just $2,000 left to go on that one.