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Running the Numbers – What Sending Even More Money to Debt Can Do

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I ran some numbers today, and if I pay $1,100/month to our credit cards we will be debt free in December of 2008! That’s 5 months earlier than previously calculated before we shifted our debt around and lowered our interest rates. That’s pretty awesome and would make for a great Christmas present.

I ran the same scenaio, but changed the numbers around a little:

Pay $1,500/month – Debt free April 2008
Pay $1,700/month – Debt free February 2008
Pay $2,000/month – Debt free November 2007

I especially like the last option of being debt free because it’s only a little over a year away. But at $2,000/month I would need to make some extra income somehow. The highest we have ever been able to pay in a month (not counting tax return time) was $1,500.

Seeing the dates in front of me makes me really want to try.

My time is pretty much maxed, so obtaining a new job is not an option. I still have to ask for a raise at my one job (I’m a chicken when it comes to things like that *sigh*). I will obtain a raise for my full-time job if I take some coursework but I’m having a hard time sending off the funds to do it. I will get reimbursed when I finish though – I just hate parting with hundreds of dollars right now. Plus then I have to find time to study.

I could change my goal date of May 2009, but I’m not quite ready to do that yet. The scenarios I ran assume that I will be able to do another balance transfer if I need to. I have two low interest rate balance transfers that will expire in November (3.9%) and March (0%).

Gosh, I hope one of my other cards has a good balance transfer offer. Otherwise, I’m looking at 15%+ interest.

I try not to think about the looming 15%+ interest rate for it does somewhat depress me. It took a bit of shuffling to get all of our debts under 9.9%. In a way, I am just keeping my fingers crossed that I will be given offers at the right times. Otherwise, I will have to figure out plan B.

In the meantime, the biggest thing to do is to just keep paying as much as we can.

TGIF – Friday’s Blog Highlight

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I was so engulfed in shopping for health insurance that I almost forgot that today is Friday!

Today’s blog is one that was a big inspiration for me to take action against my debt. She started with a total of $19,794.23 back in May of 2005 and her last payment towards her debt was in July 2006. A little over a year and she is now debt-free.

In her very first entry, she reveals that her debt started when she was 18 with a $500 limit credit card. That’s exactly how mine started too.

She also would post on ways she saved money, and even ended up saving money on car insurance after she moved and updated her address.

She also shared reader success stories to show how others were reducing their debt.

Defying Debt…in 2 Years is now retired for the debt chapter in her life is closed. Normally, when authors stop writing on their blogs I remove them from my blogroll. But not this one. For anyone fighting debt, it’s nice to read from start to finish from someone who did it.

Thank you lpkitten for sharing your story and helping to inspire me to finally become debt-free 🙂