what 2 do w/the extra $100/mo in my pocket???

[Sian]

hey ya'll!!! the name is sian (said like shawn)

this is my story.

my current monthly debt:


MasterCard 1-
Balance: $250.61
APR: 20.15%
Monthly Minimum: $25 (this is fixed)
Annual Fee: $48
Monthly Fee: $7 (even if the balance is $0 there is still a monthly fee)
*note: as soon as this card is paid off i will b cancellin it

MasterCard 2-
Balance: $1940.97
APR: 18.99%
Monthly Minimum: $75 (this is variabled at 4% of balance)
(i will keep this card once paid off b/c i won't b gettin another one unless it has a lower APR. this card will only b used every 2-3months to keep active w/the balance paid off the subsequent month)

Job Loan-
Balance: $475.11
APR: 0%
Monthly Minimum: $105.80
(taken due to company change in pay schedule and check would have been short $1200)

401K Loan-
Balance: $553.51
APR: 5.25%
Monthly Minimum: $10.56
(this is currently a 60month loan but i will pay it off next yr regardless)

Old Apt Complex-
Balance: $1427.25
APR: 0%
Monthly Minimum: $20
(they want me 2 pay this off in a yr but i will also b makin a couple of lump sum payings totalling $200)

Student Loan-
Balance: $12,618.45
APR: 8.25% (variable)
Monthly Minimum: $193.55
(this is a private loan)

AT&T-
Balance: $287.03
APR: 0%
Monthly Minimum: $5

Verizon-
Balance: $30.71
APR: 0%
Monthly Minimum: $5

Library
Balance: $96.19
APR: 0%
Monthly Minimum: $5


i have & can currently pay the minimums with no issues. i am currently adding an extra $25/mo towards my debt reduction plan b/c i've currently paid off (& cancelled b/c it had fees) 1 credit card earlier this month (WHOOHOO!! )

my current plan (i use dueminder.com to help me figure out the snowballin of my debt repayment) is when i receive a 3rd paycheck in oct, to pay off the job loan (those monies r taken outta my check every pay period) but will not necessarily free up monies 4 me 2 use towards debt repayment. it WILL allow me to change my w-4 info so that i'm not payin uncle sam back durin tax season. also w/that check i will put an extra $200 towards the old apt complex (which i'll do in april as well). i will also use an extra $200 to pay off credit card 1 and the library fine if there's anythin left (that goes to credit reportin where i'm from if left 4 to long & it'll provide cheaper entertainment than me rentin movies, buyin cd's & buyin books). that'll free up another $30/mo & i use that to pay off the 401k b/c if i lose my job that becomes due immediately then pay off the old apt complex. i'll then put those monies towards the credit card 2 (if i haven't paid it off with any tax refund monies that i get), then at&t then the student loan.

any extra monies that i make doin independent contract jobs will go towards fundin my currently empty EF.

i currently do NOT have an EF. & i wanna build that up of course. (i'll have abt $300 in it by the end of oct) but i'm hopin that when the tax refund comes that i'll put a nice chunk in my EF with w/e is left w/payin off my some of my debt.

so here's my dilemma:
I've recently learned that my auto insurance is decreasin in premium (same coverage which is liability only, but i was payin for myself & my youngest daughter which equaled $1450/mo but startin next month it will $950/mo (she now has 3yrs as an "experienced rider". it will decrease again in nov b/c she has an accident comin off then as well as decreasin again next apr. of course this is if she keeps a clean drivin record )

so this means it's comin down approx. $100/mo. YAY!!!

i know my choices r:

a)put $100/mo extra towards my debt reduction.

b)put $100/mo towards my EF.

c)put $50/mo towards debt reduction & $50/mo towards my EF.

even if i just pay the minimums and only do $75/mo extra (countin the $25 from the paid off acct) towards debt reduction i can pay it off 1yr sooner (almost 2yrs sooner if i put $100/mo towards it)

so what's ur advice?

[littleroc02us]

Alot of detail, but interesting to read. My suggestion is to have $1000 in your EF. It's really hard to pay off debt if lives emergencies happen and when they do you worry. So, build up that emergency fund first. Then list your debts in order from lowest to highest amount owed. Save the school loan for last. By doing this you will be able to knock off more loans quicly since they are so small. Have fun with it and celebrate each time one is gone. I hope to never see a list like this again from you.

[Hot dog]

that was a lot but if it was me I would definitely get rid of that first CC I would never pay to have a CC. Then that 2nd one has pretty high interest. I hate debt so I would prolly try to get a 2nd job to get rid of that stuff pretty quickly. Your balances are not so high so you will be debt free in no time

[Sian]

sorry abt the read!! i'm a bit anal retentive LMAO!!!

@littleroc02us:
yeah i figured it would take maximum of 10months to build an EF fund to $1000. i'm gonna throw chunks at it tho. such as $300 at the end of oct. then puttin in another $300 in apr.

i'm currently payin some of the debt from lowest to highest except 4 the credit card that has fees on it. i'm knockin that out 1st.

yeah, i don't wanna c this list again either. i still have medical bills 2 pay but i'm knockin this stuff out 1st. i will also have student loans comin due in the next few yrs but that should b the only thing comin up unless i need 2 get a better car (i currenlty have a 95altima).

@hotdog:
mos def gettin rid of the the 1st credit card. i'm only hangin on2 the 2nd one b/c i don't have any other credit card & it's difficult 4 me 2 get 1 right now w/my low FICO. so when my score is better i'll apply 4 a new one w/a lower APR.

i currently have a 2nd job as an independent contractor. i've made over $1000 one yr but only a little over $600 last yr. but that doesn't mean that i'm not lookin 4 a 3rd job. a 3rd shift job would work out very well right now.

i'm also a full time student. so i'm busy busy busy lol

[Brad]

Great post Sian.

Just as a guide you should allocated 15% of your net income towards debt repayment. If this is currently the case great, if it is not, you might look at other areas of your cash-flow statement (budget).

Good Luck.

[snafu]

I found your posting font a bit small and difficult to read but agree you clear that nasty CC asap. Anything with 0% cost of credit can continue @ minimum payment. Can you reduce expenses? What is your breakdown between needs and wants? I'd split any income from contracting work, tax refund etc. between funding EF and paying off highest interest creditors.

[ferriwinkle]

I agree with earlier post, build up $1000 EF first, then work on debt reduction. It does you no good to pay off debt if next month you need a new alternator and hve to use the credit card again.

[Sian]

sorry abt the font size snafu.

right now i'm at bare minimums. I have approximately $1977.88/mo comin in from my main job.

rent: 400
electricity & water: 105 (approximately)
cell phone: 60 (i'm gettin a new service in oct so that should b abt 45/mo then & it's the only phone i have)
internet: 30 (yes i need the internet b/c i go 2 school online & my online seminars are late at nite (8-11pm) so no can do at the library)
insurance & taxes & licensing: 115
alimony: 600 (yes i pay it 2 him)
gas/oil: 70
groceries/personal care: 100
clothes: 20 (i actually just bought somethin 4 the first time this month in several months. if i don't by anythin then i'll add a litt 2 another category but not all of it)
entertainment/sports: 25
savings: 5

for my variables i use cash. when it runs out then i don't have anythin til next payday. my variables are each paycheck:

gas: 32.30
groceries/personal care: 46.16
entertainment: 11.54
clothes/gifts: 9.24
everythin else: 6.13

the work loan & 401k comes out of my check automatically every paycheck. when i pay those off i'm not gonna use that money 2 put back in2 my debt repayment. that is goin 2 go towards payin taxes of my w-4 b/c i've been takin too much out . so i need 2 pay off the work loan sooner than the end of the yr which will b in oct at the latest so that i can take more taxes out my check.

i've currently learned that i'm gettin a refund from my school. abt $2100.

so i'm only adding another $25 to my debt repayment plane which means i'm payin a total of $351.55 not countin the 401k & the work loan.

when i receive the refund this is my plan:

1) put $1k in my money market as my emergency fund (might as well earn me interest right? lol)

2) i'mma pay off the rest of the work loan (abt $500) but the 401k isn't gonna b paid off til apr 2011.

3) i'mma get rid of the credit card 1 (abt 250) b/c it has all the fees on it, the library fine (abt $100) b/c it'll mean i pay less in entertainment since it's free (i love the library )

4) then i'll start payin down the old apt complex.

so that's 3debts paid off, my emergency fund funded, & more money towards my other debts AWESOME!!!!!

btw, built in2 my monthly expenses is the savin up of for certain expenses such as oil changes & whatnot...

[Sian]

4got 2 mention that in january i'll start contributin 2 my 401k. by apr i'll b able 2 commit 6% to it so that i get the company match.

in my contractin job i'll b able 2 get abt $270/mo max when i go back 2 it in a few wks. so that'll b extra money 2 pad my reg savings acct. i'll get that to $500 (i'll put $200/mo from that in2 it the other $70 will go to debt repayment), then i'll go back 2 payin off all debt.

i'll b graduatin feb 2012 (hopefully) from college but my loans will come thru at abt 6months after i finish school (abt june 2012). by then i'll have a lot of stuff paid off & puttin most of my monies toward the sallie mae student loan that has the variable rate. & will have abt 2yrs 2 pay it off instead of payin it off in 2017 if i just do the minimums....

[Sian]

an update:
recently applied 4 another job so if i get it i'll stop my other jobs (since they're independent contractin anyways) and just do my main job & the new 1 if i get it. i'm hopin 2 get at least 25hrs a wk w/the addt'l job.

applied for tuition re-imbursement at my job so hopefully i'll be eligible 4 it which will b an extra $2000.

unfortunately i just found out i need 2 grad b4 my bday late next yr. so that means i'll b usin most of the money from any new job i acquire 2 pay 4 it. but the tuition reimbursement should help a lot.

[ConquerWithTruth]

You are optimistic and happy.

[Sian]

You are optimistic and happy.

THANK YOU!!!

what's there 2 be upset abt anyways? it's of my own makin & i'm gettin out of it actually since part of my refund check came in i just paid off another credit card (the 1 w/all the fees) so that means i've paid off 2 cards as of 2day YIPEE!!!!! i'm also abt 2 pay off my loan from my job

plus i'm very excited abt payin stuff off & havin extra money 2 do w/as I please instead of payin other ppl with it.

slowly but surely i'm comin outta this hole that i dug myself in2. at least it's smaller than it could have been b/c i've had things in collections & they've "dropped off" b/c it's been so long.

the only thing i can do is: get my bills straight; pay off what i can; secure my future; & be happy. & i'll tell u this. i'm VERY happy

[DebbieL]

I'm surprised at the alimony. At your income level, $600/month is a HUGE amount. Can it be modified? Was your income higher when it was set? I'm in Canada, and I don't think alimony is very common here. I don't know anybody (male or female) that has collected or paid it. Yikes!

[Sian]

yeah i agree that it IS high but at least it's for a set amount of time... only 5 1/2yrs to go... (not like i'm countin or anythin lol)

just found out that i'm not takin enuff out for my federal withholding so now i gotta backpedal. no longer have the extra $100 in my pocket b/c of this but that's ok. not gonna b able 2 snowball my payments 4 the rest of the yr. just minimums. things r gonna b tight if i don't get an addt'l job. but i can do odd jobs & stuff so it's not dire yet...

but next yr will b all good lookin forward 2 january LOL!

i'm actually realizin that it would b a bit worse if i hadn't paid off those 2 credit cards. so i'm happy i already did that