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    My plan to be debt free

    This is my current debt, in the order I want to pay them off, I am doing it by balance

    Amex
    Balance: $542
    Interest: 27.24%
    Available balance: $1600
    Monthly interest fees: $15
    Annual Fee: None
    Monhtly minimum: $15

    Visa
    Balance: $2800
    Interest: 12.99%
    Available balance: $4200
    Monthly interest fees: $31
    Annual Fee: None
    Monthly minimum: $50

    Personal, non revolving loan
    Balance: $5890
    Interest: 16.45%
    Monthly payment 360, out of which 85 is interest, 275 goes to principal
    Monthly interest fees: 85


    Car loan

    Balance: $9410
    Interest: 5.95%
    Monthly payment 297, out of which 49 is interest, 248 goes to principal
    Monthly interest fees: 49 ---> corrected

    Paid for accounts

    Care Credit
    $5000 available credit @ 23% (only for health services)
    Annual Fee: None

    Master card
    $1000 available credit @ 24%
    Annual Fee:19

    I think that is the correct sequence for paying them off.
    Now, which cards would you keep after all is said and done.

    I think I will cancel the Master card since it was an annual fee
    What do you think?
    Last edited by Radiance; 09-04-2009, 06:00 AM. Reason: Car loan fees were wrong

    #2
    I would not use any of them until they are all paid off. If you cannot use one of them without paying in full each month, you should put them in the drawer or even cut them up.

    Yes, get rid of the MC. The rest can sit idle or close them as you wish.

    I have two idle cards and one I use and PIF. My credit score is fine just doing what I feel comfortable doing.

    Comment


      #3
      Originally posted by Radiance View Post
      This is my current debt, in the order I want to pay them off, I am doing it by balance

      Amex
      Balance: $542
      Interest: 27.24%
      Available balance: $1600
      Monthly interest fees: $15
      Annual Fee: None

      Visa
      Balance: $2800
      Interest: 12.99%
      Available balance: $4200
      Monthly interest fees: $31
      Annual Fee: None

      Personal, non revolving loan
      Balance: $5890
      Interest: 16.45%
      Monthly payment 360, out of which 85 is interest, 275 goes to principal
      Monthly interest fees: 85


      Car loan

      Balance: $9410
      Interest: 5.95%
      Monthly payment 297, out of which 49 is interest, 248 goes to principal
      Monthly interest fees: 85

      Paid for accounts

      Care Credit
      $5000 available credit @ 23% (only for health services)
      Annual Fee: None

      Master card
      $1000 available credit @ 24%
      Annual Fee:19

      I think that is the correct sequence for paying them off.
      Now, which cards would you keep after all is said and done.

      I think I will cancel the Master card since it was an annual fee
      What do you think?
      How much do you have to pay on your debts every month?

      Once you either pay off the AMEX or when you have enough available credit on your Visa, I would think about paying off your personal, non-revolving loan with your Visa at 12.99% so that you reduce your interest payments. It would probably also reduce your overall minimum monthly payments so more could go to principle.

      Comment


        #4
        Why the Visa before the personal loan? I'd do highest interest first.

        Does the MC annual fee get you anything? Any perks? If not, cancel it.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

        Comment


          #5
          Originally posted by Radiance View Post

          Car loan

          Balance: $9410
          Interest: 5.95%
          Monthly payment 297, out of which 49 is interest, 248 goes to principal
          Monthly interest fees: 85
          How do you pay $49 of $297 in interest, yet pay $85 a month on interest?

          Comment


            #6
            Steve,
            I think I want to do the Visa first because of the psicological effect of having less accounts sooner. Also milestone wise I will be able to say "I am credit card debt free" sooner. Gosh, I know it sounds silly, but I think it will make the ride more enjoyable. Do you think that is an expensive approach?

            MC is going away, no perks and I just recall their customer services sucks.

            cptacek, good catch. my mistake, fees for the car loan is 49 and decreasing each month.

            Comment


              #7
              The minimum on the Amex is $15
              The minimum on the Visa is $50
              Loan payment $360
              Car payment $297

              Originally posted by Lindahfx View Post
              Once you either pay off the AMEX or when you have enough available credit on your Visa, I would think about paying off your personal, non-revolving loan with your Visa at 12.99% so that you reduce your interest payments. It would probably also reduce your overall minimum monthly payments so more could go to principle.
              That is an interesting approach! I wander how much money does it save.
              (I did confirm I have no pre pay penalty on any of my debt)

              Comment


                #8
                You've come a long way already! Good luck with your debt-free journey, it seems that with everything laid out you'll be out of debt in no time!

                Comment


                  #9
                  Originally posted by nmboone View Post
                  it seems that with everything laid out you'll be out of debt in no time!
                  I agree. Any reasonable plan will get you to your goal. Whether you do highest interest first or largest balance first, the most important thing is that you are making substantial payments, not taking on any new debt and living well below your means.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    An update
                    Just called Master Card to close up because they have an annual fee.
                    The rep was in shock that was the reason I was closing... it felt good.

                    Comment


                      #11
                      Radiance, it sounds as if you are rocking along on your plan!

                      Comment


                        #12
                        Originally posted by Radiance View Post
                        An update
                        Just called Master Card to close up because they have an annual fee.
                        The rep was in shock that was the reason I was closing... it felt good.
                        They must have been in deep shock, otherwise they should be bending over backwards to convince you not to. That's good you closed it...one less opportunity for getting into debt.

                        Comment


                          #13
                          Another update, Amex is paid off!
                          Three more to go!

                          This is my current debt, in the order I want to pay them off, I am doing it by balance

                          Visa
                          Balance: $2800
                          Interest: 12.99%
                          Available balance: $4200
                          Monthly interest fees: $31
                          Annual Fee: None
                          Monthly minimum: $50

                          Personal, non revolving loan
                          Balance: $5336
                          Interest: 16.45%
                          Monthly payment 360, out of which 85 is interest, 275 goes to principal
                          Monthly interest fees: 85

                          Car loan
                          Balance: $8915
                          Interest: 5.95%
                          Monthly payment 297, out of which 49 is interest, 248 goes to principal
                          Monthly interest fees: 49

                          Paid for accounts

                          Care Credit
                          $5000 available credit @ 23% (only for health services)
                          Annual Fee: None

                          Amex
                          Available balance: $2000 available credit @ 27.24%
                          Annual Fee: None

                          Those interests are ridiculous, keeping for now in case of a world crisis emergency or something.
                          When my credit recovers I plan to get better ones to replace those.
                          More recently, my debit card pays rewards, so I am even less motivated to ever use credit cards, even if it is to pay in full monthly. They will become a piece of plastic using space in some drawer. no?

                          Comment


                            #14
                            Originally posted by Radiance View Post
                            Those interests are ridiculous, keeping for now in case of a world crisis emergency or something.
                            When my credit recovers I plan to get better ones to replace those.
                            There is no reason to replace them. The interest rate is absolutely irrelevant because you will NEVER AGAIN use a credit card to make a purchase that you can't afford to pay for IN FULL when the bill comes.

                            I have no idea what the rates are on my credit cards and I use a CC almost daily for something. We charged over $40,000 to our cards last year but every bill was paid in full each month so I couldn't care less what the interest rate is. It could be 300% and it wouldn't bother me a bit.
                            Steve

                            * Despite the high cost of living, it remains very popular.
                            * Why should I pay for my daughter's education when she already knows everything?
                            * There are no shortcuts to anywhere worth going.

                            Comment


                              #15
                              Originally posted by Radiance View Post
                              Another update, Amex is paid off!
                              Three more to go!
                              Yipee! Congratulations. Keep up the excellent work.
                              My other blog is Your Organized Friend.

                              Comment

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