Yes I am going to focus on interest rate instead of amount.
Good for you on your progress!!! While I've read & heard bits & pieces about the new cc laws, I must admit, I knew nothing about where every $$ over min payment was credited toward your highest int. purchase on that card.
For instance, my bank visa is "attached" to my checking acct & I had mistakenly double paid my mortgage one month! Needless to say, my checking was overdrawn & the funds were removed from my cc. So now...each cc payment I make over the min due will, by law, go toward that"cash advance" as they call it?
Just making sure I'm reading this correctly.
Also....GOOD move to pay down the high int cards first. I recently moved $4500 from the above card to my 0% int card. I still have 4 mos left on that rate so I'm going to attack both cards with a vengence! Card #1 is 10%, "cash advance" is 24% & Card #2...after 0% promo is done it will sit at 11%.
My ultimate goal...pay these 2 down by the end of July 2010 & refi my mortgage!
Game plans work with the desire & discipline to stick to it. Good luck to all with your 2010 goals!!
as far as snowballing, i did a combination of both. i paid off 3 of my low limit cards, & then started on my gf's high balance, high interest card to reduce the interest buildup. almost done with that, so i'll be moving on to her bank of america card, which has about 3800 on it @ 7.9%.
my credit goals are to have my credit improve enough to get a chase or bank of america card. a big challenge since i'm not working at the moment, & they don't seem to take household income into consideration (in my case). i want to get rid of my low limit cards, & have my 2 stubborn baddies take a hike off my reports (2011)
Jan 1st #
Card # 1 $9,250.00
Card # 2 $5,500.00
Card # 3 $4,000.00
Card # 4 $2,700.00
Card # 5 $2,400.00
Card # 6 $1,500.00
Card # 7 $1,250.00
Card # 8 $ 500.00
Debt # 9 $2,400.00 (LOC)
Card # 1 $9,145.44
Card # 2 $5,445.86
Card # 3 $3,982.51
Card # 4 $2,687.99
Card # 5 $2,925.19
Card # 6 $1,806.65
Card # 7 $1,200.00
Card # 8 $ 0.00
Debt # 9 $1,674.81(LOC)
Net Decrease: 631.55
Not much progress in the last month, waiting for the new CC law to take effect to start paying more than the minimum on two cc's that have different interest rates. For some reason score fluctuated from 712 to 668 back up to 700 within 2 weeks. Baby steps.
Well - It's been about 7 months and not a whole lot of progress, but I guess any progress is better than any.
Card # 1 $7,095.27 - Break down of debt = $5,337.96 @ 7.90% & $1,757.31 @ 19.99%
Card # 2 $4,906.85 - Break down of debt = $3,715.73 @ 13.24% & $1,191.12 @ 19.24%
Card # 3 $4,349.50 - Break down of debt = $4,349.50 @ 10.24%
Card # 4 $2,984.28 - Break down of debt = $2,583.46 @ 10.24% & $ 360.82 @ 13.99%
Card # 5 $2,012.58 - Break down of debt = $2,012.58 @ 13.24%
Card # 6 $ 769.12 - Break down of debt = $ 769.12 @ 21.99%
Card # 7 $ 369.06 - Break down of debt = $ 369.06 @ 0.00% until May 2011
Debt # 8 $2,400(LOC) - @ 15.75%
Net diff $4,613.34
Average decrease per month of $512.60
Honestly I would have liked it to have been more, but I will take any decrease.
Not to apply for any new credit for the next to years keep my payments up an pay down some of my balances
Wow. It's been a while since I've been on the board.
Just wanted to give a quick update. Well my 2010 plan was a complete failure. Not only did I get into more debt in July of 2010 I got a new car with a carpayment of $860.00 a month. Well it's amazing what two years and a little maturing can do for you. For the first time ever (as of this month I will have no car payment. I bought a "cash car" for $3,300.00 (LOC and savings) and I took my 2010 Infinit and sold it to carmax. I took a big hit on it ($-5,500) but it was well worth it. I will now start to work on all my credit cards since I don't have a car payment. I am slightly worst off than I was in 2010.
Card # 1 - $7,020.69 (7.9%)
Card # 2 - $4,828.40 (14.9%)
Card # 3 - $4,471.72 (13.24%)
Card # 4 - $4,336.85 (10.24%)
Card # 5 - $3,013.29 (13.9%)
Card # 6 - $2,965.69 (10.24%)
Card # 7 - $1,752.14 (13.24%)
Card # 8 - $ 808.50 (19.99%)
Card # 9 - $ 206.38 (0.0%)
Loc # 1 - $2,506.81(15.99%)
My monthly budget is going to be $1,500 a month and my goal to be out of debt is going to be 24 months! I am hoping that this time I don't fall off the wagon!
Like a previous poster said,
Just keep paying, just keep paying.
I owe almost three times what you owe in student loans. I've only been paying the minimum for two years but my goal this year is to pay the car loan off (which will hopefully be done before the year is up) then I'll snowball the funds into my loans.
Just continue the never ending process of chasing your tail while corporations feed off of the sweat and tears of your labor.
Makes you feel good huh?