I’ve talked before about my debt attack plan and in which order I was planning on focusing on my debts and why. While much of what I talked about before still holds true, I have changed my mind about a few things as I’ve progressed throughout the year. As such, I thought I should take some time to update you all on my debt plan of attack, what’s changed, and why.
First, here is a table showing all my different debts, their current balances (10/31), interest rates, minimum payments, and goal payoff dates.
Now, several of my balances have gone down since my last update (which is the goal obviously), but a few of them have actually gone up too.
|Title||Total Balance||Minimum Pmt||% Interest||Goal Payoff Date|
Therefore, I’ve changed my plan for what order I’m going to pay on my debts. Rather than focusing on CC#4, I’m going to shift my snowball to CC#6 because it’s a store card and I can’t use it anywhere but that specific store, which I’m no longer visiting. Therefore I think it will be easier to pay off since the temptation to use it isn’t there. Plus, it has a higher interest rate than CC#5. (Since these are based on 10/31 balances, you don’t see it yet but CC#4 had a large increase last month.)
After I get CC#6 paid off (hopefully ahead of schedule), I’m going to put my snowball toward CC#8 so I can hopefully pay off the entire balance before my 0% interest promotion ends on my computer purchase.
Other than that, not too many changes to my debt payoff plan. I’m still mostly focusing on my smallest balances first (other than the card with the computer) so I can have the satisfaction of small wins along the way.
Any thoughts on my new plan of attack?
Photo courtesy of: Chris Potter