UnThreaded | Threaded | Whole Thread (46) | Ignore Thread Prev | Next
Author: Aranknitter Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: CC debt again... Date: 2/2/2003 8:23 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I've lurked on these boards for a wee while now, and posted occasionally but not often.

Thought I'd ask for feedback on my situation now.

Kinda ashamed to admit that for the money I earn, I have nothing to show for it! The CC debt crept up over the years, and I never really sat and thought about where it was going till Jan 2002. Started repaying debt at that point.

In Jan 2002 I had nearly $70,000 of debt. I've paid some of it off now though, but I seem to have hit a "slough of despond" - I think it's gonna take another year or two to get debtfree except for the mortgage.

So,.. Here's the ugly stuff

MBNA card at 2,696 (15.99%)
Citi card at 7,563 (7.99%)
Credit union credit card at 9,997 (5.9%)
Store card #1 at 1,600 (0%)
Store card #2 at 2,365 (0%)
Car loan at 8,480 (8.75%)

Now, the only card with a really horrible interest rate is MBNA. Shall I try and do a BT to Citi (who have always been unfailingly nice to me and always given me a great rate) or shall I not bother given that I hope to have it paid in 4 months anyway?

Then after MBNA is dealt with... I'm kinda thinking about putting the snowball money to my car loan because that is the next highest interest rate and besides, it is the largest minimum monthly payment. Would be great to free up that monthly money. But there again I've always heard that one should pay CC debt *first* before loans, as one is good debt and one is bad?

I shall have to switch to paying Store card # 2 by Aug this year at the very latest too, as the 0% interest rate runs out on 24 Dec 2003 and it will go up to 13.99% at that point - plus, I'll get hit with accrued interest for this whole year if it is not completely paid off by that date. It will take 3 months to clear that one.

I have $1,500 a month to put to the debts.

I guess I have focused on the high-interest debt till now, all the way down to MBNA and then once MBNA is paid, (at that point I have eliminated 2/3rds debt) which way should I go???

I have about $2,000 in the bank for an e-fund. 401(k) stands at 147,000 and right now I'm only putting in 3% so as to get the 3% match from my company. That's another thing I'm mulling over. I got slammed for tax this year :( as normally a lot of my income goes to the 401(k) so I can get down into a lower tax bracket. I'm at the bottom of the tax bracket I'm in now. Am I right to be thinking "Increase 401(k)" again for next years taxes, or are taxes the least of my worries at this point???
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (46) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Russia Collapsing Again?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement