Debt load
So today I was able to sit down in the evening to tally up my debt load. Good thing I can swim! The amount of debt I have is approaching my neck, at least my head is above it. Here is a rough estimate:
Credit card 1 (@ 3.9% for life): $14,485
CC 2 (@ 0% until December): $6,719
CC 3 (@ 0% until March): $7,256
:: These are accumulated throughout 2006 due to medical reasons. Right now, I'm paying double the minimum each month. Any advice on how to pay them back quickly and efficiently?
Student loan 1 (federal): $11,523
Student loan 2 (private): $9,174
:: These have amazingly long payback period of 15 years! I'm paying double the minimum each month.
Car loan: $1,552
:: Pay off next March!
Jessica from Debt Has Made Me Its Bitch has posted the 7th Edition of Festival of Under 30 Finances. Awesome stuff!
*Update: I looked up the accounts and entered more accurate numbers. It looks like I was off about $100 or $200 in each entry, although I have less private student loan than I thought.
Credit card 1 (@ 3.9% for life): $14,485
CC 2 (@ 0% until December): $6,719
CC 3 (@ 0% until March): $7,256
:: These are accumulated throughout 2006 due to medical reasons. Right now, I'm paying double the minimum each month. Any advice on how to pay them back quickly and efficiently?
Student loan 1 (federal): $11,523
Student loan 2 (private): $9,174
:: These have amazingly long payback period of 15 years! I'm paying double the minimum each month.
Car loan: $1,552
:: Pay off next March!
Jessica from Debt Has Made Me Its Bitch has posted the 7th Edition of Festival of Under 30 Finances. Awesome stuff!
*Update: I looked up the accounts and entered more accurate numbers. It looks like I was off about $100 or $200 in each entry, although I have less private student loan than I thought.
posted by j @ 10:10 PM
6 Comments:
At October 11, 2006 8:49 AM,
Anonymous said…
My thoughts, I am in a similar position of unsecured debt. Don't pay extra on the first credit card that you have the Interest rate for life on. Pay the extra towards the 0%'s that soon might not be 0%. That would be less interest next year on those debts. Also if you can deduct the interest off your federal studnet loan, don't pay extra on it right now, pay all the extra money on the private loan. Lastly I would snow ball one of the 0% credit cards and pay if off as quickly as possible. Yes the rate os 0 and your could transfer that maybe next year but you could also transfer some of the 6.9% to a 0% then also.
At October 11, 2006 12:20 PM,
Jessica said…
hey! thanks for commenting! definitely check with kira about joining the under 30 honor if you are interested!
At October 12, 2006 1:07 AM,
Anonymous said…
*carl
good thought! i've been putting money into the highest interest rate, but maybe that's not the best way to go.
At October 12, 2006 1:07 AM,
Anonymous said…
*jessica
thanks, yay! i'll send kira an e-mail now.
At October 12, 2006 4:55 PM,
Anonymous said…
Some of the best of the debt payoff wisdom I've seen echoes what Carl said above. Don't be so concerned about the interest rates. Pay off the lowest balance first by using every bit of extra money you can.
Just pay the minimum amount due on the other debts until the first is paid off. Then take the next lowest balance on the list and apply all of the money that you were paying on the last one to it until it's paid off. And so on.
There's a wikipedia article you can check out with links to calculators at the bottom of the page.
At October 13, 2006 1:04 AM,
Anonymous said…
*raydotson
thanks for the info! it looks pretty good for my situation.
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