My new debt attack plan-but need to save first

[misscity]

Hi,

I've posted on this site before when things were still not clear to me about my finances. Past couple of months have been good in terms of budgeting. However, I had a recent emergency that cost me about $1200 so I'm left with very little in the bank ($300). So i'm not letting it hurt me and I'm going to push forward and start again. I've recently reduced my rent and canceled cable tv. I cook every night and bring my lunch to work with the exception of an occasional slice of pizza or a cup of coffee (which is purchased from my $20 weekly cash allowance which is part of my living expenses).

I have aggressively brought my living expenses (includes rent, phone, utilities, weekly cash, loan of $325) and other monthly bills) total down as much as possible without starving myself or living with 5 roommates in a dumpy apartment. So I can't cut anymore from that number until I can pay off the loan which is a pretty high amount. After my living expenses, I have a monthly excess of $1050 from which I need to pay off my credit card debt and save.

My total credit card debt is $2260. But since I only have $300 in the emergency fund, I want to funnel enough to get it up to $1500 for now. So I'm going to only pay the cards $100 a month and save $830. By the end of May i'll have my emergency fund met once again. And from that point put the leftover $930 per month to the cards and I should have it paid off by the end of August.

Once that's paid off, i'll make double payments on my loan while adding $600 a month to my emergency fund. If I do that, my loan should be paid off by the new year.

After analyzing the figures for the past hour, I think this sounds like the most doable optiono. Does this sound like a good plan?

[maat55]

Sounds good to me.

[creditcardfree]

That sounds like a great plan! Good luck.

[cptacek]

I agree that it sounds like you are on the right track. Some will quibble about stopping your emergency fund at $1000 instead of funding it to $1500 right away (because you.must.follow.dave's.advice.to.the.letter), but that is not worth sweating over.

Now you have a plan, you just have to work the plan and be patient. Sometimes that is the hardest part! In one more year you will be able to look at live in a totally different perspective with those two loans paid off!

[disneysteve]

Originally Posted by misscity

I have a monthly excess of $1050

So I'm going to only pay the cards $100 a month and save $830.

You say your excess is $1,050. You will pay $100 to the CC and save $830 in your EF. That's $930. Where is the other $120 going?

[coach2wealth]

Sounds like a good plan to me. The key is you are goal setting and planning. You will win. My only suggestion is look to pickup a little extra income and start preparing for a major leap in income by reading at least 12 non-fiction books a year.