Debt

[dancerjodi]

Jetgrrl sent me a great spreadsheet for looking at debt payments, interest, etc.

If I paid things at the rate I've been doing (which *is* over the minimum payment each month) I'd be done paying off my 2 credit cards in 2008. Over that time I would have paid $35,000 in just interest alone.

This doesn't include my student loans and car loans (student loan should be paid off in 3 more years if I stick to schedule, car loan in 2 more if I stick to schedule).

Whee fun.

We need to figure out something smarter than what we've been doing to get this debt down. We can afford the payments, but we're throwing so much money away. This doesn't also include the credit cards that Brian has, or his car loan (or our mortgage). Me thinks we need to do less toy buying (ahem, Brian) and less spending over the weekends).

Comments

[devina.livejournal.com]

I built a spreadsheet for my brother to help him with this. First, I figured out all his balances & interest rates. Then figured out what the interest payment on each card is every month, then added a few dollars (ten each, in his case).

We took all his spare income, and covered every one of those interest+ payments first. Then figured out the highest interest rate card, and pushed as much extra money into it as we could. The idea is to be paying down principle on all the cards so there's less to accrue interest on, but hitting the most expensive card the hardest.

Once you get one paid off completely, you can transfer bits of other cards to it every month and pay it off completely again. (Just make sure there are no fees involved for transferring balances, some cards charge for that.) That grace period between payments keeps you from accruing interest on that, and even if it's just a little bit, it matters.

Also, it sometimes really helps if you call cards to see if you can get your rates lowered. If you've got AAA, you can see about getting your car loan transferred to them, too, they've got great rates. (Or a credit union, if you belong to one.) Have you looked into consolidating your school loans? Rates are hovering around 3% right now, which is a great deal.

I hate money issues, I so feel your pain. :( *hugs*

Debt

[dancer.livejournal.com]

The spreadsheet I have is from the Motley Fools (and they promote the same tactics you mention). You're so smart! :)

My car loan is from AAA.
My student loans are consolidated.

I think I just need to take that last step of cutting "fat" out of my budget so that I can put more towards cards. Buying 2 houses over a 2 year period while paying for Grad school wasn't really a huge help to this process either :)

Thanks for the tips!