Thursday, March 3, 2011

6 credit cards down, 4 to go!

i know i havent posted in a while... i had a baby! more on that later
i have only turned on my computer 2 times in the last 18 days... to pay bills. Im proud to say ive just paid off the 6th credit card this year! I will be losing my unemployment income so my husband and i set out to lower our monthly minimum bills for when that happened. I listed out all of my credit cards and found out their interest rates and promotional periods and made a plan using the rest of my unemployment income and part of hubby's salary to get the cards paid off using a modified snowball plan. We had a couple promotional balances on our Home Depot card from constructing the loft. That was the first to be paid, even though it wasnt the he lowest balance because we wanted to avoid interest that was set to hit soon. Then we focused on the lowest balance cards next with the exception of another card with promotional period ending in july. each month i poured as much of our budget as possible to the debt and now i am down to 4 big cards, Best Buy is set to be paid before it's promo period is up next year.

the idea behind the snowball is that as a debt is paid off the money in the budget that was being used to pay that minimum can be allocated to the next debt.

in january, I looked at my expected income for the next few months and outlined how much $ would be paid to each debt each week. I kept in mind misc $ for whatever wasnt in the budget.

anyway... baby needs me be back later!

today, 3/23/11 I paid off yet another card. I was excited to see that the final balace was smaller than i had calculated so i was able to swing it with this paycheck!
I only get 1 more unemployment check next week, so my debt snowball pay off is going to slow down but now that we have cut back how many minimums we have overall, we have freed up some money to really make headway on the final cards.

1 comment:

  1. Hey Cyndi congrats on the baby arrival. Looking forward to hearing how everything is going