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Trying to dig my way out

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    Thanks for your responses!

    I ended up getting unemployment, which pays just under $1000/month. DH brings in about $1850/month. We have been paying between $450 and $600 a month on debt repayment and our debt spread looks like this:

    $800 @ 21.99% BofA
    $667 @ 14.99% Amex
    2,100 @ 6.99% BofA
    1,500 @ 0% (promo APR which ends in September, then it's up to 21%)CapOne

    I would like to get it paid off as quickly as possible and am thinking of using some of our savings. We only have about $1200 saved up right now, and we might have to use ~$600 of that for some immigration fees in October. Either we take that out of savings or just drop down to minimums for October and use the money that usually goes toward debt.

    I'm wondering if it is a better idea to use the extra money in our savings to pay down the debt more quickly? Or just keep the cash where it is and continue to crack away at the highest interest debt the way we're going now? I have some friends who say that having savings while carrying debt makes no sense, and that we have the credit cards in case of emergency so we don't need the cash in savings, but the truth is that you can't pay everything with a credit card.

    We share a 2 bedroom apartment with my brother, who quit his job this month and hasn't even started to look for another. I think he has plenty of money saved up, but I'm not sure and I'm a little bit worried that he might get to the point where he can't pay rent. I do know he has at least $600 in medical bills that have gone into collections. He could have more than that that I just don't know about. For that reason, having some cash in savings gives me a lot of peace of mind and lets me sleep a little better at night, which might just be reason enough to keep it there.

    Also, I do have a balance transfer offer from BofA for 0% interest til April 2012, but there is a 4% transfer fee. So, what I'm thinking of doing is trying to pay off the $800 currently on BofA which is at 22% and then transferring the $667 Amex (14.99%) and the $1480 CapOne (will be 21.99% in Sept) with the 0% offer. I'd pay $83 in transfer fees, but then I'd have til April to pay it off. Then we would pay about $500/month until the $2,100 that is at 6.99% is paid off, which should be gone in January.

    So, I hope that post makes sense. What do you guys think of my plan? Any better ideas on how to handle it?
    Last edited by bettie; 06-28-2011, 09:39 AM.


      I couldn't agree more- the shredder is the best place!
      have you ever considered going to a company that will be able to help give advice on how you will be able to manage this debt or give advice on how you can consolidate your debt. If you are unsure where your first point of call is I would suggest going to the citizen advice bureau and they will be able to guide you from there.


        it sounds like you do have a good plan however it could be refined slightly - have you ever considered looking into seeking advice from a debt advisor? they can help wonders and will advise you on the best way to pay your debt that suits your lifestyle.