I spent a good part of last night working on my plan to pay off my debt. With my raise and the BF going back to work it's time I got serious and began to attack this. Because my student loans are below six percent interest I am leaving them be for right now.
Taking a page from Dave Ramsey I have already started to put money into an E-fund. I am going to snowflake every last penny into that E-fund until it reaches $1000 which should be in just over three months.
I am more interested in saving the most money possible in interest so instead of using Dave's traditional debt snowball I am going to modify it. Once my E-fund is complete I am going to throw everything I've got at my Capital One credit card which is charging me almost 18 percent interest. If I can get that up to about $250 a month I should have it paid off about two years after I start attacking it. Then I'll move on to the next and the next. I haven't sat down and did the math yet but I'm looking at somewhere between three to four years to have them all paid off I think.
Plan starts Friday, here I go!
Love the new look. Yes, attack the Capital One card, that's crazy they are charging you 18%! See if you can transfer the balance to another creditor, I currently have 12% on my Citi Forward MC.
ReplyDeleteWhat's the balance on the card? and are you doing this on your own or is the BF helping?
Good Luck
HS
Oops I just saw the link to MY DEBT up there... yeah try to get rid of Capital One...
ReplyDeleteI'm curious what did you spend all that money on? small stuff? or big purchases?
HS
Look at you, all spiffy. Great plan. We are also trying to do the high interest debt first. Have you looked at some of the on-line calculators, like whatsthecost.com? You can plug in all your info, and it will tell you how long it will take to pay off. The neat thing...you can play around with the amount you pay per month to see how that impacts the bottom line. Amazing how just $20 more a month can shave a few months off.
ReplyDeleteWill they lower the interest rate for you? Good idea having a nice savings account built up first though!
ReplyDelete@HS I used my cards for a lot of different things. When I was a Junior I did an unpaid intership for three months and I used my cards to finace that. I also bought a new computer and some things for my house. There were also a lot of car repairs that went on that card.
ReplyDeleteAs for the 18% interest, as soon as I can I am going to transfer that balance off that card. All my other cards have under 9% interest so I don't know why Capital one is pushing me around with 18%.
The BF isn't helping directly. He is paying for a good amount of the household expenses while I attack my debt.
@Mysti I haven't looked at those calculators yet. I am planning on doing it tonight after I get out of work though!
@Carla I called them a few months ago and asked and they said no even after I got on the phone with a supervisor. I am planning to call again at the end of the month and see what happens.
ReplyDeleteHi, it's been years! I hope all went well with your payment plan, and hopefully, achieved your goals for 2011! Have you found your way out of these debts? The best way to start is to stop increasing them, like avoid spending much using a credit card. It would also be helpful if you keep track of your spending and start paying off the debts little by little. Jaden @ TorontoBankruptcyAdvice.com
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