First of all–thank you everyone for the great feedback on last night’s post! We are still digesting info and will report back with our decision. We do know that we have much work to do on defining our budget items. As of now we have no defined budget for a lot of the items mentioned. It was a huge step to just define a lump sum 5 months ago to stop the bleed. Now it is time to tighten up the spreadsheet.
I am very excited to share that we have a plan. Here it is:
December 2013 is our goal date for credit card freedom-that is, all debt except for the car loans. That is a very aggressive goal but I want to outline it for you. We are using Mint.com to monitor our progress. We will be paying off cards in the order of highest interest rate to lowest interest rate. Below are payments to be made through December 2012.
I hope to be able to report June 1 that the $245 credit card is gone. The debt to dad will be down to $305. The rest play out like this:
Credit Card 7 (15.7%) $1,607 payment in June, balance of $774 in July.
Credit Card 11 (12.9%) $560 payment in June, $1,325 in July, $2167 beginning in August and continuing through December (and beyond).
Credit Card 10 (11.9%) and Credit Card 6 will remain at the minimum payments for the remainder of 2012. That is $268 on #10 and $50 on #6.
We have decided to pay $650 per month on the $11,000 signature loan beginning in June. This puts that debt on track for December 2013 payoff.
If you are curious, this plan pays $1,917 on top of the $1,233 in minimum payments for a total of $3,150 per month going toward credit card debt. Now…go ahead and excuse yourself to go vomit as you think about that!
A comment just came up that is perfectly timed. “Unlike many folks, you guys are very fortunate to actually have the earning power to dig out of this deep hole relatively quickly by throwing not hundreds but thousands of dollars per month at it.” Thanks Joe! We are very fortunate and are determined to be better stewards of the good fortune.