I am in desparate need of your help. :smhelp:I have been on a real financial roller coaster ride since mid 2007, and the good news is that right now I am earning an excellent income. This has thankfully allowed me to get caught up on my bills.
My problem? I have NOT used every dollar earned in the best way over the past year, and need to focus focus focus on getting back to following Dave's plan. I have the book and brought it out to re-read it the other day.
I was fearful of my financial situation so put my head in the sand. Just about the worst plan of non-action I could have done.
I am ready to come clean and get rid of this debt while I can!!
1: Mortgage on primary residence: $104,600 $1,188/mo PITI
2: 1st Mortgage on rental: $25,000 $589/mo
3: HELOC on rental: $11,300.00 $168/mo
4: Car loan: $15,000 $433/mo
5: Car loan co-signed for and pay each month $13,600 $410/mo
6: Student Loan: $1,400 $60/mo
7: Credit Card that went to charge off: $700
8: Credit Card that went to charge off: $1,700 (most of bal is fees)
9: Gas for heat and hot water: (I owe $1,000 and need to pay this in July to keep hot water...)
In a very slightly modified Dave, I want to pay off debts in this order: Debt number 9, then 6, then 5, then 4, then 3, 7, 8, 1, 2.
I will have a $1000 baby emergency fund by the end of July
I want to pay off the charge offs since I was given the credit in good faith but think it would be best to pay off my open accounts first.
Right now I can make my monthly budget PLUS pay a HUGE $3,500/mo extra against my debts. IF I stay frugal.
My challenge is that I travel and live out of hotel for work, and am only home for the weekend every 2 or 3 weekends. I was doing well for a while, but recently got into the BAD habit of buying lunches at the ridiculously overpriced deli near the office and sometimes even going out for dinner!! I also bought clothes and shoes I did NOT need, and paid a fortune out of town for a haircut. I think that was when I realized how out of control I was getting. I need to take advantage of this good income while I have it, and pay off debt.
I'm a consultant. My high income should continue until at least the end of the year, and if all goes well, through next year but perhaps at a lower but still good rate.
There is a fridge and microwave at the office I work in....
If I focus on eating well on the road, and stop wasting money, I can do this quickly.
Here is where my Frugal colleagues come in:
**would you be willing to help me stay on track?
**would you let me know how you would attack the debt if it is different than my plan as written above?
**because I am a consultant, should I set aside a larger EF before starting the full snowball?
I am happy to post my full budget if that would be of benefit.
I am truly seeking advice, guidance, and support.
Thanks in advance. I know I can count on this group.:grwave:
Jen
My problem? I have NOT used every dollar earned in the best way over the past year, and need to focus focus focus on getting back to following Dave's plan. I have the book and brought it out to re-read it the other day.
I was fearful of my financial situation so put my head in the sand. Just about the worst plan of non-action I could have done.
I am ready to come clean and get rid of this debt while I can!!
1: Mortgage on primary residence: $104,600 $1,188/mo PITI
2: 1st Mortgage on rental: $25,000 $589/mo
3: HELOC on rental: $11,300.00 $168/mo
4: Car loan: $15,000 $433/mo
5: Car loan co-signed for and pay each month $13,600 $410/mo
6: Student Loan: $1,400 $60/mo
7: Credit Card that went to charge off: $700
8: Credit Card that went to charge off: $1,700 (most of bal is fees)
9: Gas for heat and hot water: (I owe $1,000 and need to pay this in July to keep hot water...)
In a very slightly modified Dave, I want to pay off debts in this order: Debt number 9, then 6, then 5, then 4, then 3, 7, 8, 1, 2.
I will have a $1000 baby emergency fund by the end of July
I want to pay off the charge offs since I was given the credit in good faith but think it would be best to pay off my open accounts first.
Right now I can make my monthly budget PLUS pay a HUGE $3,500/mo extra against my debts. IF I stay frugal.
My challenge is that I travel and live out of hotel for work, and am only home for the weekend every 2 or 3 weekends. I was doing well for a while, but recently got into the BAD habit of buying lunches at the ridiculously overpriced deli near the office and sometimes even going out for dinner!! I also bought clothes and shoes I did NOT need, and paid a fortune out of town for a haircut. I think that was when I realized how out of control I was getting. I need to take advantage of this good income while I have it, and pay off debt.
I'm a consultant. My high income should continue until at least the end of the year, and if all goes well, through next year but perhaps at a lower but still good rate.
There is a fridge and microwave at the office I work in....
If I focus on eating well on the road, and stop wasting money, I can do this quickly.
Here is where my Frugal colleagues come in:
**would you be willing to help me stay on track?
**would you let me know how you would attack the debt if it is different than my plan as written above?
**because I am a consultant, should I set aside a larger EF before starting the full snowball?
I am happy to post my full budget if that would be of benefit.
I am truly seeking advice, guidance, and support.
Thanks in advance. I know I can count on this group.:grwave:
Jen