I was looking today on the net trying to figure out if the 2011 adoption credit is going to be refundable, and it looks like a yes. Insert big "heck yeah"! Plus, it is around $13,300 for each child, we are adopting two, so our refundable credit would be $26,600. Dear Lord- pretty please let my research be correct and it indeed be refundable!


Anyway, several years ago Chris and I took a Dave Ramsey Financial Peace Class. It was tough, but ultimately we were able to save up thousands of dollars. If you haven't heard about Dave Ramsey definitely check it out. Currently, we have zero credit card debt, but do have a car payment and student loans. I will admit that I don't think a whole lot about the student loans because the interest rate is about 1.5%, but still, there is interest that we are paying and it is costing us money. My big plan with the adoption refund is to once again start the Financial Peace wagon. My number one debt to knock out will be the car payment. We currently pay $323 a month for our car. (Is it bad to admit that on a blog??)


We needed a car 2 1/2 years ago, and gas was approximately $4 a gallon. After doing 8 million calculations (I am married to an engineer after all), we discovered based on mileage, wear and tear, and gas, and several other things, that although the new car would cost us $323 per month, it was in reality only costing us a little under $100 per month, for a brand new car that gets between 38-40 miles per gallon. My hubby drives 80 miles per day just going to and from work, not including any mileage for work, so for us it made a lot of sense. However, we would love to get rid of this debt, and never have to go into debt again for a car. (The idea being that we would save up money by not having any debt other than the mortgage, and thus be able to pay cash again for anything/everything we need in the future.) Gas went back down, so our savings ended up being less than what they thought they were. Another bonus to not going into debt for things that we need.


So that is my big plan. We have been busting our butts saving up for this adoption, so it won't really be any different, but we will be able to knock out the debts that we have instead of it going towards our kids. I am excited and hopeful. Even if the adoption credit isn't refundable, this is still our plan, and it will become even more important because we won't have the extra income from the govt. to kick start our debt payoffs. I am trying not to think about the increase in health insurance, our huge high deductible health plan, along with two babies in diapers..... but I do know that God DOES provide for all of our needs, and I am trusting in Him for all of this to work.