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.
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My fiance and I did the same thing - seemed like the progress was so slow by paying off the high-interest (biggest accounts) first, and we became discouraged because there were still so many. So we switched strategies: we maintained minimum payments for about a year on two high-interest accounts, while throwing every penny we could at the smaller, lower-interest accounts. We paid off 14 credit cards in one year. 14!!! We were so excited and this gave us loads of encouragement to stay on track. Over the next two years, we paid off those monster accounts as well.
I'm no fiancial advisor, and those who are might disagree with me - but sometimes a little psychology goes a long way. So we spent more in interest charges with this strategy, but our frame of mind while doing so made it all worthwhile.
Msfit
&nbs
Sandra
Susan
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