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Debt repayment plan is written

June 9th, 2007 at 06:36 pm

I've computed all the debts we have which includes:
- 4 credits cards
- 1 credit card at 0%
- 1 medical bill
- 1 car loan

The plan is to have all of it, except one credit card paid off on February 2008.

The debt totals $11,447.28. Hmm... not great, but we'll get to it.

The plan: snowball the payments until one remains and gets paid off.

The order it will be paid off:
- Chase $25 owed
- Home Depot $35 owed
- Target $311.98 owed
- Citi $1,138.24 owed (all at 0%)
- Medical bill $241.78
- Car $4,603.89
- MBNA $4,918.39
Total $11,249.28

We can allocate $1,180 every months towards that debt, increasing it by $10 every months.

We're actually already 2 months into the plan. The goal is to see all 0.00 in that first column. Smile

------- Edit -------
D's comment about putting the payment from the 0% card into a high yield savings account and only making minimum payments got me thinking: how much would we make in interest if I did that?

The minimum payment on the card is $20. Since we make between $160 and $165 payments, it would leave us $140-145 to put in the savings.

We have an E-Loan account at 5.12%. Let's see...

So we're talking $22 in interest. What should I do? Not as much as I thought it would be.

Is it worth it??

6 Responses to “Debt repayment plan is written”

  1. shiela Says:

    Great plan, love the spreadsheet. Good Luck!

  2. homebody Says:

    I love it too. Sounds like a great plan.

  3. scfr Says:

    That looks like a great plan.

    Are you paying only cash now, or will you be using the Chase card for current purchases and paying it off in full each month?

  4. Lau Says:

    Thanks everyone!

    scfr - only cash now, except for monthly transportation and parking passes that go on the MBNA.

  5. D Says:

    Just curious - since Citi is a 0%, are you paying the minimum or just paying an equal share each month.

    I think it would serve you better to pay the minimum on Citi and save the remained in a high interest account like ING or HSBC until January.

    Of course, I am a new reader and maybe there is more to this then I know.

    Good luck, in any case!

  6. Lau Says:

    D - I'm paying an equal share every month so that it'll be paid off when the interest adjusts. I could do what you are suggesting, but I would need to come up with the whole balance at the end, which would be about $1,000. I don't want to do this as I know I won't have that money when needed.

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