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making progress

November 11th, 2008 at 08:40 pm

I had plans to pay off the lowest cc first, then I called to double check on what the interest rates were on each of them, the highest cc had 29%...so I followed my boyfriends advice and get that one paid off first. It feels good to do that, but I will have to be extremely careful about spending for 2 weeks till the next paycheck comes in.
The last week was rough too my poor, pitiful checking account only had $2.62 in it, after the large cc payment and the $45 cell phone bill hits it, there won't be much left in it this time either. I do have a extra $20 left over after buying groceries though that I can stick in there.
I have decided to cancel the cc that had the interest rate of 29%, I am thinking also of canceling the other two cc's that I have too. I need some advice about that...is it a good or bad idea to have no credit cards at all?

2 Responses to “making progress”

  1. merch Says:

    Personally, I like Dave Ramsey's advice and find it pretty solid. I would recommend you review his baby steps as a general plan on getting out of debt and moving forward.

    He suggest that you get current on your bills, set up a monthly budget (a new budget every month), and set up an emergency fund of $1,000. The theory is that this should absorb most emergency so you don't have to use a credit card. Right now, how would you pay for a flat tire?

    The second step is to arrange your debt from smallest to largest. If 2 debts are similar, then attack the higher interest. The argument that your BF makes, which is correct, is that mathematically you are going to get out of debt sooner. Truthfully, it won't be that much sooner maybe 11 months versus 12 months.

    What people miss is that you are changing your behavior. By attacking your small ones first, you are getting some quick wins. It's like dieting if you see some pounds coming off quickly, there is a better chance of you staying on the diet.

    At the end of the day, it's whatever works for you. I found it helpful to post my debts on the sidebar with my progress. Good luck!!!

  2. Ima saver Says:

    Don't cancel them. Just pay them off and don't use them again.

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