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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 311082  
Subject: Re: Bankrupt or try to 'gut it out'? Date: 11/14/2012 2:21 PM
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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.

Debt 510
Netflix 8
Mort 938
Hel 246
Utility 93
gas 53
elect 276
windows 120
life ins 22
cox 38
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.

I think you are being overoptimistic on several counts:

- you haven't said that you have stopped using the cards - if you haven't already stopped using cards, stopping their use is critical to the implementation of this plan, and may not be that easy to do

- you are not adding BT fees to your debt balances or else assuming that the interest rate (and along with that, the required minimum payment) will go up if you don't find another BT opportunity - this alone will probably add 6 months - 1 year to your plan

- since you haven't been tracking your spending, I suspect that the other expenses are probably in excess of $1000

- you never said if the $1000 was net of estimated tax payments - if it's not, then you won't actually have $1000 or your tax refund may not be as large as you plan, if you get a refund at all

- do you really think that 14 and 26 year old vehicles will last another 6 - 7 years? And is your plan to go back into debt to replace them when you pay off the non-mortgage debt?

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