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Subject:  Plan of Attack Date:  8/31/2001  2:13 PM
Author:  jennapeach Number:  89460 of 312906

I'm finally gonna do this. I've been steadily chipping away at my debt for about a year now... here and there. Have all the 22%+ cards PAID OFF - woo hoo! Did a few balance transfers to lower-rate cards and I'm in a much better position that I was previously. Here's my current situation:

Age: 27
Earn $65k/year
Rent $610/month
Utilities about $150/month
Car $415/month (it's a lease, so I can't really get out of it)
Ins $125/month

MBNA balance: $6750 @ 17.9%
B of A balance: $2660 @ 8.9%
Citibank blanace $6230 @ 11.9%, but here's the kicker: I've been FOOLishly paying Creditshield premiums for the past eternity. Almost $60 a MONTH!!! That's coming to an end, ASAP, believe me! I feel like an idiot, in that I've been paying up to $600 annually for their unneeded "service." Bleh.

Anyhow, my plan of attack is this: I've been snowballing and I've found it VERY successful, so I'm keeping that up. also, gonna call the CC companies and ask for lower rates - or beg, in MBNA's case. As previously stated, I'm gonna get rid of that Creditshield monkey on my back.

My boyfriend and I have been VERY disciplined in recent months about LBYM. We cancelled our Hawaiian vacay that was supposed to begin tomorrow (have the tix and everything!) to save money. That will eliminate $1200 off the Citibank card right away (yay Travel Ins!) We're also looking at renting an apt more than $200 less than what we're paying now. When we move, adios cable & cable modem. That will cut down utilities to a more reasonable figure. We've cut way, WAY back on entertainment and eating out and in the past couple months, we've managed to save $1600 (including a couple of windfalls, too) That money was supposed to be spending money for the vacation, but since it's been cancelled, I'm leaving it alone right now (and still contributing - transferred $100 to it this morning.)

Anyone else have any suggestions? I'm steadily socking away about $350/month to my 401k. Since the market is for shit right now, I thought about suspending payments until there's an upswing and using the extra (about $200 after taxes) to pay CC's. What do you guys think about that? Any ideas/input are greatly appreciated.

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