by Hope
Another step closer. And you will see new dates on the table for the remaining debt. They are still kind of soft dates, but totally achievable based on my forecasting. But will certainly firm up by the end of the year.
| Debt Description | October, 2023 Total | Interest Rate | Minimum Payment | Current Total | Payoff Date (Est) |
|---|---|---|---|---|---|
| CC - Frontier | $3,857 | 29.99% | $130 | $3,575 | October, 2024 |
| Dad - New Furnace | $2,600 | 0% | $0 | $2,600 | January, 2025 |
| CC - USAA | $5,000 | 19.15% | $135 | $2,599 | November, 2024 |
| Student Loans | $22,121 | 2.875% | $22,749 | September, 2025? | |
| CC - Apple** | $500 | Paid off every month | $0 | ||
| CC - AMEX | $894 | 29.24% | $0 | $0 | Mar, 2024 - Closed |
| CC - Sams | $1,106 | 29.99% | $0 | $0 | April, 2024 |
| Personal Loan #1 | $2,500 | 0% | $0 | $0 | July, 2024 |
| Personal Loan #2 | $2,500 | 0% | $0 | $0 | August, 2024 |
| CC - Wander | $1,630 | 29.24% | $0 | $0 | August, 2024 - Closed |
| CC - Amazon | $1,497 | 29.99% | $0 | $0 | September, 2024 |
| Total | $44,206 | $265 | $31,523 |
Next Target – Frontier Card
Did you see my plan for the Frontier card? It was presented somewhere previously. Thoughts? Smart or dumb move?
To summarize, I had planned to pay off the Frontier card in October and then use it for Princess’ wisdom teeth extraction. Then pay it off in November and close it then. This will essentially save me approximately 1/2 month in interest charges.
However, I thought through it some more. And have decided instead, to just pay off the Frontier card this next month (October) then instead, use my remaining card USAA instead for the surgery, then pay it off in it’s entirety.
Followed by Final Personal Loan
This month’s update delays my payment plan on the final personal loan, the one from my dad. He loaned me the money to replace my furnace back in February. I plan to make my first payment in November and pay in full at the beginning of February right now. My plan continues to evolve as I make more money. So none of this is in stone…but know that my goal is to get all debt paid in full ASAP with a current focus on my consumer debt.
The Final Credit Card
According to my forecast, the first month I have $5,000 outside my regularly budgeted items is March, 2025. That is why I have set the date for the USAA CC to be paid off in full for that date. I currently pay the USAA CC about 1/2 way almost every month to cover bills – phone and car insurance. That takes care of the minimum payment and saves me some interest every month.
I do plan to keep this card open. It’s my oldest account. But come March, I should be able to stop carrying any balance at all. Maybe earlier, but that’s why I’m seeing right now.
This was my plan when I first drafted this post. But have shifted my idea based on the update under Frontier.
School Loans
Come the new year…the focus will turn to my student loans. 21 years after completing my masters program, I will finally get it paid off. I’ve added a tentative date to that debt payoff too. But it is soft for now. I needed a target on it!
Have I missed anything?
Hope is a creative, solutions-focused business manager helping clients grow their business and work more efficiently by leveraging expertise in project management, digital marketing, & tech solutions. She’s recently become an empty nester as her 5 foster/adoptive kids have spread their wings. She lives with her 3 dogs in a small town in NE Georgia and prefers the mountains to the beaches any day. She struggles with the travel bug and is doing her best to help each of her kids as their finish schooling and become independent (but it’s hard!) She has run her own consulting company for almost twenty years! Hope began sharing her journey with the BAD community in the Spring of 2015 and feels like she has finally in a place to really focus on making wise financial decisions.
Not totally sure how the math works out with your credit limit, but I think it makes sense to pay off each credit card and then stop using it. For the credit cards you’re using as revolving credit, you may want to get into the practice of paying the balance to zero on a daily or weekly basis so the spending feels more real. It’s hard to get out of the robbing peter to pay paul mentality.
You are very right. And my goal is definitely to pay them off entirely and then for the ones that remain open, use and pay off immediately.
Once you have your credit cards and personal loan paid off, you really need to focus hard on saving as much as possible. I would pay what you need to on student loans to see your principal balance start decreasing, but you need a large emergency fund to fall back on for when your current contract ends.
Very good point.
Debt August 34878
Debt September 31523
Total reduction of debt 3355
As has been stated before, if you are putting/paying bills on a card that is carrying a balance, it is NOT interest free. You should only pay on a card that is being paid in full every month. For that reason, I would recommend you putting the wisdom teeth on a paid off Frontier card (and then pay it off and close it ). Are you keeping your USAA card open? You can call and ask them to reduce your credit limit.
I would also agree to ROBUSTLY be saving in retirement/emergency funds over prioritizing student loans (after consumer debt is paid off). With a 2.87% interest rate, it is better to max out your IRA’s and long term savings/index funds. With your employment history, I would say you need at least a YEAR in emergency funds that is semi liquid.
Yes, you are right. That’s why I thought pay off the car to avoid this months interest. Use the card. Then pay it off for good next month.
I cannot pay it off and pay cash for her surgery, so this seems the next best plan.
Given that you like to “gamify” things. You could actually make saving for a years worth of emergency fund as a “debt” and pay it off every month. It might change the narrative in your mind.
That’s actually a great idea. And does work with the way I like to challenge myself (or gamify) as you say.