Debt Repayment Plan
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|Sun, 04-20-2003 - 1:37am|
We bought a house two months before he was layed off. Naturally, our finances were strained to the limit! We managed on credit and used it to take up the slack. I switched jobs to earn more money and for the medical benefits we needed. To payoff our $36K (now $30K) worth of credit card and loan debt I took a second job teaching night community college courses.
I use 90% of the money from the second job paying down debt. I read alot of debt repayment plan articles and I hear pay down the debts with the highest interest is the method - but in my case the ones with the highest interest are also the ones with the mega balances so even though the balances are shrinking it feels as if I am still drowning in debt! Just to feel that I am accomplishing something I started paying off the small debts the $1000 or less and was able to payoff 6 accounts. Family and friends tell me I am doing it all wrong. My question is is the difference between paying off a 12% card as oppossed to a 14.5% card that huge of a difference? I calculated that I won't be debt free until early 2006. Thanks for your support and assistance.