CREDIT CARD DEBTS:
1. Citi Dividend Platinum - $1,024.79
finance charge – $18.80
2. RBS – $2,981.26
finance charge – $21.50
3. Household Bank – $909.07
finance charge – $9.07
4. American Express – $260.00
5. Chase #1 – $731 (dispute $400 charge)
6. Chase #2 - $728.69
finance charge – $5.99
AGGREGATE TOTAL: $6634.81
Total monthly finance charges- $55.30
I am waiting for my paycheck next Thursday. Argh. Out of $1400 I will apply $1000 to pay off one of my high interest cards. I’m thinking I’ll start with the RBS one first. Knocking it off a G should motivate me to keep applying $1K per month for the next six months. As well as save $10 on finance charges per month. I’m allocating $400 a month for miscellaneous spending – which runs out to about $100 per week which is really nothing in nyc. Usually a casual night out runs around that amount. grr. I should have gotten a job in Finance!!
Thanks for all of the encouraging comments! Just to answer some questions- I actually can’t cancel the DirecTV because I share the dish and phone line/dsl with my neighbor. Both bills come out to $100 per month so they pay the Verizon phone bill while I pay for the DirecTV so I should have stated the $117 is for both cable and internet. I HAVE however decided to cut my cell phone next month. I’ve really become anti-social lately as I’m beginning to study for the GMATs exam and it’s just such a waste to pay $70+ per month for a service I’m not fully utilizing. Besides, I also carry my company cell phone so I will give that # out for quick one minute confirmations on where to meet up with friends (if I ever have enough money to go out again!). To think, I’ve been so silly carrying two cell phones around and using neither one of them. Ugh!
Another small step- I’ve decided not to buy any facial/skincare/beauty products until I use up all of mine. Don’t worry my face won’t suffer one bit, I have so fully supplied I can start my own AVON-like sales line.
June 14, 2007 at 5:50 am
Hey – we sound alot alike! I love to buy things from Sephora (and am hating GMAT prep).
June 14, 2007 at 3:09 pm
One of the best ways to get a psychological lift when you are paying down your credit cards is to pay off the smallest one first and go up from there. It’s called the Snowball Method.
Some people advocate for paying off the highest interest rate one first but I’ve found that it keeps me motivated to pay off the smallest one first.
Also, do you have an emergency fund? Something small to cover strange emergencies like hospital copays or stuff like that? I would suggest saving at least $1k in a high yield savings account such as ING before attacking your debt.
June 14, 2007 at 7:07 pm
Hi Maria,
I do not have an emergency fund. I thought that’s what credit cards are for?? But then again that would be a catch-22. I have $1000 in my Citibank Checking plus account for overdraft protection. I can always take money out of there if need be. I’m really lucky because I work for an HMO so all my medical bills are covered 100% as an employee and I have $0 copays on any service!
Thanks for the info on the Snowball Method. I think I might try it! AMEX here I come~
June 14, 2007 at 11:17 pm
You’re very welcome.
One of the things that I noticed when I began attacking my debt was that unexpected emergencies kept popping up EVERYWHERE, so have a Baby Emergency Fund is a good way to refrain from adding to your debt, especially during this time.
IMO Cash can be used for emergencies too! LOL