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Subject:  Re: Getting back on the wagon Date:  2/24/2012  11:32 AM
Author:  Frydaze1 Number:  304562 of 312236

End of February update

I made a decision that not all here will approve of. I decided to take $10k out of my IRA and use it to pay down some of my CC debt. My reasoning is:
1) My IRA is barely making anything while my CC debt is costing me
2) Even after taxes and penalties it's a large enough change in my CC debt to drastically improve my cashflow, allowing me to pay everything down even faster.
3) Being only $10k I can replace it in 2 years with this improved cashflow, once the CCs are paid off... which will likely be the end of this year... which means, if I'm not mistaken, I could actually repay myself completely by the beginning of 2014 if I time the two year's deposits correctly.

So now, since the BofA is at $0, I have no immediate plans to pay that off directly. I will instead put the money into my eFund and pay it off in a chunk just before the rate goes back up next January.

I have also decided to split the extra money each month between the remaining Citi CC and the eFund, so I'll have an eFund. However, I expect about 2k in tax return so that splitting that will pay of the Citi next month anyway. (And I will leave my deductions as is, so that my $3k taxes and penalty on the IRA will be mostly covered by it. Yes, I could use the money all year and bank it as I plan to do with the BofA payoff, but I think I'll hedge my bets and just balance out my taxes this way instead).

So with all that, I put an extra $10k to CC and eFund, plus another $1k from improved cashflow. Here are my numbers now:

Debt        Current  Permanent      Date      Min      Starting  Current       
Name Rate Rate Changing Payment Balance Balance Progress
Chase 18.24% N/A -- $2,053 $0 -$2053
CapOne 15.90% N/A $0 $360 $0 -$360
Ducks 0.0% 9.90% 7/2012 $42 $4,280 $0 -$4,280
BofA 0.0% 10.90% 2/2013 ? $7,696 $7,696 $0
Citi 3.99% N/A $66 $4,347 $1,366 -$2,981
Mortgage 6.0% 4.50% 2/2012 $1,425 $189,838 $189,838 $0
eFund $0 -$1,562 $1,562
Total Debt $208,574 $197,338 -$11,236
CC – eFund $18,735 $7,500 -$11,235

My goal is $1000/month to eFund for the rest of the year (with any excess to the wedding/honeymoon fund).

Speaking of: Costco had a bridal show, so I found a great dress there that was well within my budget. No, I didn't put it on my CC. :-) I paid for it with some of the mortgage I didn't have to pay this month because of the refinance.

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