So Distraught Over Debt! Need to pick a Debt Payment Plan ASAP!!
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|Mon, 04-11-2011 - 12:02pm|
DH is in the military and has been pretty much away for the last two years. He's been home roughly 120 days out of the last 700 or so. He's currently away and won't be home for another 2-3 months. We rely on email to communicate and I don't know when we'll speak on the phone again. I'm a SAHM to two with one on the way.
I finally sat down and looked at what I've done to our finances. We owe $27,100 in credit cards - with pretty much nothing to show for it; much of has come from overdrafts in our checking accounts. Our cars are paid off and every bill is current; never missed a payment. We do not have a designated emergency fund; we did put our tax refund into an ING savigns account so we can't see it but haven't made a plan of what to do with it yet.
I have been wanting to have the conversation with DH for months but when he's home is for roughly 48 hours and I hated to bring all this up because I kept thinking that I would get it under control by the time he got home again. Well, it never did and it only got worse.
I came up with three plans and emailed DH with all the info yesterday. He couldn't get past the $27,100 figure and we've stopped emailing; he's livid and I don't blame him. He has so much going on at work. I'm so disappointed in myself. This is a broken record with me - I've never known what to do with money and with him gone so often, I've just let it get it out of control.
Plan 1: Credit card debt free in 14 months
Pay card 1 (10.9% APR; $11400) down in 6 months by putting $2000 toward card per month. Meanwhile put minimum toward car 2 (0% APR via balance transfer; $15700) at $100/mo then the full $2100 after card 1 is paid off.
Plan 2: Credit card debt free in 13 months
Pay off card 1 with $11,000 loan from FIL at 0%APR. following the same route as with Plan 1.
Plan 3: Credit card debt free in 17 months, but with a bit savings at end of time.
Pay off card 1 with loan from FIL at 0%APR at $650/mo** for 17 months; pay card 2 at $1050/mo for 15 months (the length of time of the balance transfer deal; payoff is Aug 2012); put $400 into savings 15 months and have $6800 in savings.