My plan to be debt free

[sgfinancialfreedom]

I am still a long way to being debt free.

I have around 27 more years in housing loan to payoff

[Radiance]

I'm already not using them at all so no risk on keeping them active. Last time I used credit was in June.
Master card I closed, because they charge annual fee.
With Amex paid for, I only have 1 cc = visa, working on paying that one down.
The other debt are loans which will come after the cc.

[LMA]

Radiance, I would close the cards in which you owe the balance. I believe they will let you do that and then you would work on paying them off. Then keep the master card as your one and only credit card, no need to have more than one.

[connor_zen]

Totally agree:

- Don't use any of the cards anymore
- Whittle down the manageable ones first to get them out of the way

Also, one note: if I remember correctly, canceling a credit card will NEGATIVELY affect your credit score. Once you're down to $0 debt, you might want to just put the cards in a drawer and never use them.

[Radiance]

2011, that is right around the corner, so exciting! You go!

[davecc]

I will be debt free by 2011, paying off my car, care debt and other stuff! never missed a payment woohoo!

[Radiance]

I think that until I have a decent EF, life can come with a curve ball and force me to use credit, so it would be nice to have fast access to low or decent interest money. Mainly thinking about medical emergencies, nothing else comes to mind.

Well, you never now, let;s say you need to bail an innocent family member from jail. Or maybe someone sue you and need to pay lawyers.

I'd better stop or I will scare myself.

The point is, until I have a decent EF, I would like to have low interest credit available, makes sense?

[creditcardfree]

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

Yipee! Congratulations. Keep up the excellent work.

[disneysteve]

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.

[Radiance]

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?

[paymydebt]

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.

[LuxLiving]

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

[Radiance]

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.

[disneysteve]

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.

[nmboone]

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!