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I haven't yet had an opportunity to reflect on what the other replies have mentioned. I was in a similar, but very different, situation a few years back. The differences is that I did it all to myself while in college, and my debt levels weren't quite as high.

So, here's what you've shown:

Car loan @ 6.25%: $3,609.32
CC #1 @ 3.99 for life: $6,759.65
CC #2 @ 0% through 1/07: $10,000
CC #3 @ 0$ through 12/05: $500 (just transferred the rest to CC2)
HELOC, variable, currently 6.5%, $14,496.68


Sounds dumb, maybe, but I don't know what HELOC means, though I can see that it's a high-value debt. The way I got out of my debt was to go after the highest interest first. But, in your case, I think that going after the lowest balance (assuming all of CC#3 has been transfered over to CC#2) is smart -- just like you're doing.

If you can get the car paid off, you may not only apply that payment value to another debt, but you may also be able to get a reduction in insurance costs and use that savings as well.

Seeing that I just figured out that HELOC = Home Eq. Line of Credit (gosh!), and assuming that your home is going to be increasing in value (though reportedly somewhat slower these days), I'd go after the next lowest balance (CC#1). The HELOC may have a higher rate, but the thought is that it's considered "good debt" more than "bad debt" because it's debt on an appreciating asset.

BUT, beware (and I'm pretty confident that you know this) the details of CC#2, because if you don't pay off that entire balance by 1/07, you'll probably be charged with accrued finance charges (that almost happened to us on some 12-month-same-as-cash furniture purchase).

Otherwise, and for what it's worth, you seem to be doing great. But, hey, I'm no expert.

Respectfully,

Adam
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