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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Bankrupt or try to 'gut it out'?||Date: 11/13/2012 7:16 AM|
|Author: aoeuid||Number: 306415 of 311476|
Still, for me, the big unknown is my DW's monthly income. If she can average 1K per month it is doable. If she does not average 1K per month . . . Hmmm . . .
DW came up with the rough draft below -- as far as expenses, we dropped our cable TV saving us 50 bucks per month. I wish she would drop her therapist, that would save us another 50 bucks a month. But, she thinks the therapist is helping her. OK. One can not put a price tag on one's health - be it mental or physical - its all connected.
Here is just one possible option for a 6 year pay off plan.
Citi 1% ends 10/14 ….73 $7,260.81
Barclay/0% until 10/13 watch for BT $9,656.49
Chase 3% for life….61 $3,296.08
Chase 2% ends 4/14..77 $9,694
Citi …73 - 6 divided by 8000 = 1,333.33 12 divided by 1,333 = 111 So if paying 120 to it a month it will be paid off easily in the 6 years. But since 1 % ends in 2 years would have to watch for another BT when gets close to ending that is close to as good of a deal at least.
Barclay - 6 divided into 10,000 = 1666.67
12 divided by 1666.67 = 138.89 Plan to send 140.00 each month.
Would need to watch for a BT before 10/13
Chase..61 - 6 divided by 3500. = 583.33 12 divided by 583.33 = 48.61
Chase…77 - 6 divided by 10,000 = 1666.67
12 divided by 1666.67 = 138.89
Plan to send 140.00 each month and watch for BT also before 4/14
Discover 627.28 I suggest just sending them $60 a month and planning to pay them off with in 1 year.
So this one possible option for pay off in 6 years is
120 + 140 + 50 + 140 + 60 = 510 A MONTH to credit cards either for a year then switch to 450 (or see below).
Also take half of any tax return amount and put to credit card debt. Paying off highest interest ones first (the other half goes to saving for emergencies). So say possibly at least 1k to it each year also. So 1k x 6 is 6000 so really 32k becomes 26k divided by 6 which makes it more like 364 in payments a month but plan high and adjust to lower if want later. Like the 60 that went to Discover for one year then possibly goes to another or to savings.
So new budget would look something similar to this.
life ins 22
ING (savings) 50
= 2,354 - your income 2,482.55 = 128.96
So food, phone, medical bills etc. would come from my $1000 a month.
Dean again, to keep myself encouraged, I'm trying to view it as most of the money was for home improvement (at least 20k of it), therefore it was/is an invest. Then I tell myself we bought a BRAND NEW 2013 Honda Accord and we are just making the 'normal' payment monthly that we would be making had we actually bought the car. In reality, we drive a paid for 1999 van and a 1987 Nissan car. The van has about 120k on it and the Nissan has about 185k on it. I hope they can hang in there and last until the above six year plan is over!
I am eager to hear any one's thoughts on the above plan.
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