I refinanced my variable rate HELOC to a 5.99% 20-year fixed rate HEL this month, and also took advantage of 0% credit card offers that were too good to pass on. I currently have the cash sitting in a 5% savings account, but will be using some of the funds to landscape my backyard, finish the pool, and do some other minor repairs & upgrades around the house. I plan to pay off the credit cards before their promo rates expire, so that I don't get hit with outrageous finance charges.
My 401k and IRA account balances took a hit this month, but I view the market decline as a buying opportunity to acquire more stocks on the cheap. My real estate values dropped a bit as well, but I'm not selling so it isn't much of a concern at the moment. Hopefully the real estate market stabilizes soon.
I'm a pretty debt averse person, but I feel okay about my current debt load and asset allocation given that the interest rates on the borrowed money aren't sky high. I think I can still achieve my goal of being completely debt free within five years, as long as I practice frugality and continue to aggressively attack my debt. |