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Personal Finances / Credit Cards and Consumer Debt
|Subject: The Plan||Date: 1/26/2014 12:37 AM|
|Author: FlippoHip||Number: 307731 of 309397|
I got back into debt when I got divorced about 3 years ago. I have a house that I bought about a year after the divorce (he kept the house and everything in it). I bought when the prices were super low and so was the financing. The payments are cheaper than rent and the finance rate is 3%. I'm not worried about paying it off right away and I already have equity.
I was making less than 1/2 of what I make now, and I had to use credit to make ends meet and furnish the new house after my divorce. I let it snowball. I know...bad, bad, bad.
The plan is to be debt free in less than three years. I may be able to swing it in two and a half years if I add in tax refunds, but I never count on those.
This is while still putting some in savings every month. (I know, Dave Ramsey says not to, but I worry the roof will go or the AC will die or something. A $1k e-fund isn't comfortable for me.)
I have a $10k signature loan. (I bought my mother a car and gave her some money to help until my fathers will and their savings account is out of probate. He just died last month. It's a brand new loan)
I have 2 cards with $0 balances and one with about $10k.
I owe about $16k on my car still (had to get a new one after the divorce, as the other was in his name.)
So, I'm going back to school part time, to get the GI Bill and all of that will go to the credit card, along with a bit from my paycheck. My GI Bill runs out in September.
I will pay the regular loan payment and car payment until the credit card is finish. I will have a $0 balance by December.
Then I'll put whatever I was paying on the credit card toward the loan.
The car and loan will both be paid off around mid-2016.
Wish me luck!! I've never made my budget out two years in advance.
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