new to these forums, but looking forward to learning a lot.
My wife and I decided to go the "no credit- cash only" way of life last July. We had been doing ok financially before, but made the mistake of taking out a home equity line of credit to do some home improvements, and spent too much of it on other things. Looking at the debt inspired me to try and do something more formal than we had been doing before, which was nothing but paying whatever bills showed up in the mail. Anyway, my brother-in-law gave me his Dave Ramsey CD's, and I saw the light. More or less. Because we already had good savings habits, just bad debt habits I don't follow Dave exactly as prescribed. Which now brings me to my actual question.
I have a home equity line of credit that I owe about $70k on. I am planning on liquidating my ameritrade brokerage account and using tax refund to drop this to about $40k. it is not locked in, so moves with prime. Probably around %8 today. My mortage is ~180k at %5.5 but will swictch to ARM in about 7 years, but am hoping to have that paid down substantially by then, so don't really want to mess with it. We have a 401k, two roth IRAs, and 529's for each of our 3 children that we are continuing to contribute to, although not max on any at this point. Currently, we have tightened our belts such that we will probably be able to pay it off in about 3 years, however it will not be a fun 3 years, and vacations will be to state parks etc.
According to Dave's approach, I should stop contributing to savings and pay of the equity loan quicker. However, I am not so sure about that. Opinions? What other information/details should I take into account? I guess my biggest downfall, is I am too lazy to do any laborious math calculations as to what makes the most sense.