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Let the Debt Reduction Begin!
By DaveM | March 20, 2006
If you read about my credit card hell VIP membership, then you already know 2006 is the year of debt reduction and getting back on financial track for me.
It all begins today because I came home from work to find a shiny new Discover card in my mail. They approved me for enough to consolidate my three credit cards onto this one new card, which offers zero interest until April 2007. The other credit account is with a major home improvement store (where we bought those appliances), and that also offers zero interest for one year (ends Jan. 2007).
So, here’s the plan… Out of the roughly $16K in total credit card debt I mentioned before, we already managed to eliminate about $500 this month. So, the remaining $15.5K is spread across two cards that charge zero interest for at least the remainder of 2006. We have $1000 per month allocated in our spending plan for paying down debt, so $600 goes to Discover, and $400 goes to the store account. This plan will pay off the store account one month early and we avoid all that ugly accrued interest. As for the Discover card, we’ll be allocating every spare dollar (in addition to the $600/month) to it throughout the year so it will be paid off this year as well.
The ROTH’s are going to get fully funded for 2005 by tapping into one of our mutual fund accounts. No biggie there - it’s money well spent (well, re-allocated). We’ll worry about how to fund the ROTH’s for 2006 later this year.
So, that’s it. Now you know my 2006 debt elimination plan. I’ll keep you posted as things progress.
September 18th, 2007 at 10:37 pm
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