knowledge -
There are many schools of thought on best ways to approach debt reduction on a budget. When you can't PIF because money is a factor, you must analyze the best strategy to achieve your end result, which is debt free as soon as possible.
With that said, I have done rough calculated comparisons on your debt portfolio, comparing the "pay highest apr" vs. "pay lowest balances first" and with consideration to your emergency fund.
I am pretty good with math, but this is still just my opinion. The following factors are part of my consideration:
1. Your highest cc balances are actually your lower APR cards.
2. You have several "close to paid off accounts"
3. CC's have "minimum payments" regardless of balance, meaning proportionately speaking, as your balance gets lower, the required minimum becomes a larger percentage in relationship to the balance owed. EX: Owe $100 and minimum payment might be $20 and with a balance of $500 the minimum is still $20.
4. You have steady income currently
5. You have available cash (emergency fund) to work with
So, because your lowest balance cards are also mostly your higher APR cards, you get the best of both worlds for a pay off plan....you get to attack the lowest balances and highest APR's simultaneously.
MY ADVICE:
1. Use your $2000 emergency fund to pay off:
HSN#1 - $155
Capitol One - $882
HouseHold#1 - $571
HouseHolde #2 - $379
2. Use the normal "paycheck derived" minimum payments for the above accounts, plus the normal payment of the Capitol One #3 to pay off or as close as possible pay off Capitol One #3 - $298
You now have 5 accounts PIF which are some of your higher APR's. Each month going forward, you divert what you normally paid to these 5 accounts (minimums plus a litte) to your highest APR card which is Capitol One#2 - $3018.
The reason this hybrid approach is best is that because from a cash flow stand point, the minimum required payments on low balance accounts begin to represent a higher payment than the savings derived from paying down higher APR accounts.
Next, you really need to have a SPRING CLEAN GARAGE SALE and Ebay listing sale. This is the best time of year and we all got "stuff" that we don't use, don't want, don't need or is a luxury that you can really do without. It is amazing what one man's trash (not really trash, just the saying I'm using) is worth in treasure to other people. Many people raise hundreds and even a few thousand this way.
With the money from your garage sale/ebay fest you can do 2 things: put toward emergency fund or aggressively pay down more on your credit cards.
Ordinarily I would say put some or all toward replenishing at least some of the emergency fund. But in your case you have adequate credit sources that you could tap them in an emergency, if necessary. So you can decide which makes you more comfortable: some or all to emergency or put all to debt and plow ahead.
Then you need to make sure you have a written budget. You need to know what money you have coming in and where it is going. And then eliminate, for the time being, those non-essentials and luxuries that you can (going out to eat, impulse buy, etc.) Concentrate on increasing your debt reduction and make that your priority.
Also DON'T use the credit cards for anything you won't PIF at statement, so that you don't incurr additional interest payments and debt liabilities.
This is aggressive and you will have to find enjoyment in the "free things in life" but the sense of relief and freedom you will gain will be well worth it.
