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Updated Plan of Attack

November 19, 2014

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8225606758_64a0609b70_zI’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.

TitleTotal Balance
Student Loan$6,841.57

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.

TitleTotal BalanceMinimum Pmt% InterestGoal Payoff Date
Student Loan$6,841.57$93.076.5511/2017

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

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14 responses to “Updated Plan of Attack

  1. Hi! I just recently found your blog and decided to read from the beginning. I’ve been struggling with debt for a while now and you’ve inspired me to start a blog about my struggle and journey as well. I’m hoping it will help to keep me accountable for my spending habits.

    1. Hey! I’m so glad you decided to a blog to help you stay accountable. It’s still hard to stay on track all the time, but blogging really helps me. I’m going to check out your blog now 🙂

    1. Thanks Mrs FW – I’m hoping to be ahead of that schedule! (If I put my freelance income toward debt I should be.)

  2. I am a firm believer that every financial plan to debt free bliss must be tailored to your personal needs and goals. There is no such thing as one size fits all when it come to your finances ( or clothes, but that’s another subject), so good luck with your plan.

    1. I know! I have used CC#4 a bit 🙁 But I finally but it back in it’s secret hiding spot (which is quite hard to get to as a deterrent). 🙂

  3. I haven’t read any of your history, so apologies for jumping in.
    Dave Ramsey’s approach is to pay off the smallest bills first- dont’ even worry about the interest rates. Because you’ll get a feeling of success with each card you pay off.
    And small successes will keep you on track.

    1. Hi Kat. Thanks for stopping by. I am trying to do a bit of a hybrid here with the snowball and avalanche methods. I am still paying on my smaller ones first but have prioritized CC#6 over CC#5 due to the balances being nearly the same, but CC#6’s interest rate is higher. Also, CC#4’s actual balance as of today is higher, which is why I moved it down the list. I decided to do CC#8 after CC#6 due to not wanting to have to pay interest on a 0% promotion I have going on with that card. After CC#6 and CC#8 are paid off, the rest are organized by balance rather than interest rate.

  4. I think your logic is perfect! I have attended FPU and while I agree with the majority of Dave Ramsey’s principles I have a credit card that is at 24.9 % interest with a 16k balance…ouch! So I am using the hybrid approach too. Paying extra on my smallest balance AND on the nasty ‘ol Macy American Express with a non-negotiable insane interest rate. What was I thinking? I NEVER use that card and try to only use my lowest balance cards for semi-emergencies! Love your blog!

    1. Thanks Sherrie! I think reading and attending FPU was a good idea, but like you said, sometimes a hybrid approach is best. You have to do what’s right for you, not just blindly follow the advice of someone else. None of us are the same and we all have different situations. 🙂

  5. Makes sense to me! It’s definitely good to be humble enough to adjust your plans when you find a better way, not only here but in life in general. Keep up the good work! I’m rooting for you!

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