Gettin’ Real

I haven’t read much of my new Dave Ramsey book yet, but I have read enough in it and online to get the idea of paying debt down by starting with the smallest debt first.  I don’t have as much debt as the average American but I have enough.  Too much.   

I mentioned before that I have “come into some money”.  With it, I will be able to pay off one of my major credit cards, my two store cards (Old Navy and Kohl’s) and my hospital bills (I owe $125 on my stay when I had Madalyn–and she is almost three now!–and over $600 for Annagrace’s tonsillectomy).  That will leave me with one credit card bill that is a shade over $7000.  Yeah.  I know.  OUCH.  But there is light at the end of the tunnel!  I can see it . . . down there just a little ways!  I am also going to pay the rest of Madalyn’s preschool tuition for the year (that will free up $95 a month).  So with all those bills paid, I guesstimate that I’ll have approximately $300 a month that will be freed up to put towards my big major credit card. 

So here is what I am planning to tackle the larger credit card bill.

1) Look into getting a lower interest card.
2)  Set up my account so that I will automatically pay $250 from each pay check onto the card.

If I am able to get a lower interest card (I get several 0% offers each month in the mail) then by paying $500 a month I will have paid off $4000 by next Spring.  We are hoping that when we sell our house we will make a good amount on it and can use some of that money to pay down some debt.  I will have approx $3000 left on that one card and that will leave my BIG debt–my van–needing to be paid off.  My prayer is that we will make enough off of our home that we can pay down a good bit on the van and maybe refinance for a shorter loan time.  When we bought our van, we got a 7 year loan with the idea that once some money was freed up (we knew that our school loans were almost paid for and I figured I’d get these cards paid off soon) we’d have more to put towards the van.  So I’d like to get the van at least half paid for, refinance and up my payment (using that $500 from my credit card payment and adding it to my van payment).  If I am able to do that, then the van will be paid for in about 2 years instead of 6 more (we are already one year down). 

So that’s the plan if anyone has actually read this all the way through!  Oh yeah–I also have an opportunity to apply for a bonus at work.  I have to submit a “curriculum vitae” and apply for Clinician 2 Status within the nursing department.  If I get it, it will be about a $2000 bonus paid in one lump sum next Spring.  So there is most of the credit card bill wiped out.  I really need to get on the ball and get going on my curriculum though! I’ve waited until the end of the year and I have to apply for it by the first part of October!

1 Response to “Gettin’ Real”

  1. 1 Melissa September 25, 2008 at 5:21 pm

    Sounds like you have a really good plan in place to get your debt paid down 🙂 Hope it all works out according to plan 🙂

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September 2008

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