| Account | Outstanding Balance | Monthly Minimum Payment | DOLP Number | DOLP Ranking | Dave Ramsey Ranking | My Current Payments | My Rankings |
| Providian Visa | $601 | $37 | 16 | 2 | 1 | $400 | 1 |
| Amerifirst Mortgage | $1075 | $75 | 14 | 1 | 3 | $35 | 2 |
| FingerHut | $1,000 | $50 | 20 | 3 | 2 | $10 | 3 |
| Car Loan | $11,378 | $400 | 28 | 4 | 4 | $400 | 4 |
In addition to these 4 debts, I still owe $210 to Black Gold for the insulation that was sprayed in my attic earlier this year. I do intend to get that and at least the credit card paid off by the end of the year.
For Fingerhut and Amerifirst, if I don't get them eliminated by the end of the year, which would take a windfall to accomplish, I will have them paid off by March 23. In other words, I will have everything except the car paid off before I celebrate this blogs 2nd blog-aversary.
Now, I am sure some of you are wondering about my lower then minimum payments. I have talked with Amerifirst and the $35 is the amount they gave me. Amerifirst understands I am trying to get back on my feet financially and have been very good to work with. At least as good as a "slave owner," can be. Fingerhut on the other hand has been difficult to contact, and I am just sending them the crumbs of my budget. It won't be long before their payments are accelerated and I can get rid of them from my life forever to. However, for now I am focused on the Credit Card, which besides being the smallest, also has the highest interest. Then I will focus on that home improvement loan that is at about 16% interest. After which, I will turn my focus to the 2% interest of over priced fingerhut.
Come April, I will be able to then accelerate my payments on my car loan. According to the figures, that loan will be paid off by Feb 2009. That is if I can maintain the very accelerated payments that would leave me with virtually no mad money.
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Hello Prince!
ReplyDeleteHow come you have not listed the IRS in this list?
You know, they are the legal mafia. Don't forget them, you can never be free of them and they....without warning...can seize your home and bank accounts.
hi dedicated -
ReplyDeletethanks for the comment. I haven't forgotten the IRS, but with the agreement I have with them I didn't figure them into the debt.
i'm glad you're targeting the highest interest first. i had some trouble finding work this summer, so i went into debt just a bit. i just finished my first week on a new job so it looks like things are going to work out. for all the (legitimate) criticism we give consumer credit, it helped me through this difficult job search period. the point to me is: know how much you owe, and at what rate, and if you go into debt, step up the efforts to earn more and spend less.
ReplyDeletehere's another note you might like: my knee has been hurting for a few months. i remember buying new shoes a while back. curious, i switched back to the old shoes... lots of holes, but comfortable. that very day, the knee improved. so i figured i need different new shoes. so i went to the sports store and found some. but since i keep a $200 balance on my debit card, and had been busy with back-to-work purchases, my card was declined. Ok, ok, so I went home and put marine sealant on the holes in my old shoes. Someone on the bus told me about this stuff. For ten dollars I extended the life of my old, comfortable shoes! It's called Marine Adhesive Sealant 5200 from 3M. And it really has worked well for me! Great money saver!
yeah, targeting the one with the highest interest first is the best solution, I usually think that getting out of debt and havign a financial success is always about strategy, we have to be strategic, yes?
ReplyDeleteJohn and Debt Help -
ReplyDeleteI am still following Dave Ramsey's plan of the smallest debt first. It just happens that it is also the largest interest rate as well.
I'd like to meet that Ramsey guy and give him a piece of my mind.
ReplyDeleteJohn -
ReplyDeleteAs we have tried to explain to you before, paying the lowest debt first may not be mathematically correct, but it is motivational to encourage you to continue on with the process of getting debt free.
If you eliminate a small debt you are more likely to continue on. Whereas, if you shoot for a higher interest rate first then you might (and more likely to) give up and claim that getting debt free is to hard.
I know the motivation completely, and I disagree completely.
ReplyDeleteWhen you begin paying a lower rate before paying a higher rate, I will help you calculate how many more days you will have to work to pay off your debts.