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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 311084  
Subject: Re: Debt Paydown Plan Help Date: 9/15/2010 10:40 AM
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Living expenses generally run about $1,200/month.

I presume that 'living expenses' don't include the debt payments?

You don't list your minimum payments on the debt other than "Loan A" - I am going to assume that the credit card minimum payments total in the $350 range.

have no guaranteed weekly income (again, freelance) but by month's end will have $8,500 in liquid assets to go towards both living expenses and debt repayments.

I presume that's after this month's living expenses and minimum debt payments?

So the first thing that you need to do is set aside next month's living expenses and minimum debt payments. That would be about $1800 ($1200 + $350 (credit cards) + $223 (Loan) = $1773)

Then, I would suggest keeping at least 1 month's worth of 'living expenses' and minimum debt payments in a savings account as an emergency fund. So that's a total of $3600.

So, out of the $8500, you have $4900 left

Card B
$1,664 @ 0% until 10/17/2010
$398 @ 18.99%

I would suggest paying this card off now, presuming that the 'go-to' rate on the expiring balance is going to the same 18.98%, as it's your highest rate listed, part of it is already at that rate, and the promo rate on the rest expires in a month.

That leaves about $2800. Since you don't list the 'go-to' rates on the other cards, you need to look at what those are. If the highest 'go-to' rate is higher than the 13.24% rate on card A, then I would suggest putting that $2800 in a savings account to use to pay the high rate down/off before it expires. Otherwise, use it toward Card A.

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