Comments on: Monthly Debt Reduction & Savings Statement – May & June 2009 – “Playing Catch Up” Edition

By: sekishin

sekishin — Tue, 07 Jul 2009 14:59:23 +0000

At some point, years ago – we had NO savings, NO e-fund, and around $30k in credit card debt. After changing spending habits and pounding away at the debt we are out of the black hole and into the light . . . good luck and keep at it . . .

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Tue, 07 Jul 2009 13:43:14 +0000

Hey Matt–Even if you don’t hit your stated goals by the end of the year, it looks like you’re making solid progress, and that’s what really counts. If you reach “only” 75% of your goals you’ll have accomplished plenty. At a minimum you’ll have set yourself on a positive course, proving to yourself that you can do it.

You deserve credit just for having the willingness to post your personal financials on the web. In a culture where most people have a phobia about disclosing personal financial information about themselves you’re taking quite a big step here. If you can do that you can do just about anything! In a real way, you’re a trail blazer, lighting a path for others–which I believe is the whole purpose of DFA! (Mission accomplished!)

By: Matt Jabs

Matt Jabs — Tue, 07 Jul 2009 12:54:12 +0000

I am using a combination of the Debt Snowball and the Highest Interst methods.

Based on interest rate & amounts I owe… I choose which debt I attack first. The first high interest debt I successfully paid off was my credit card with the lowest balance (it had around $1,200 at the onset). My other four high interest debts (after my June payments) are:

-credit card 1 = I owe just under $1,600
-credit card 2 = I owe just under $1,600
-credit card 3 = I owe just over $3,800
-auto loan = I owe just over $5,100

Credit card 1 has the highest interest rate of all, so (barring any set backs) I am paying $600/month toward that and $200/month toward credit card 2. Credit card 3 actually has a lower rate than my auto loan, so the third debt I will attack in succession will be my auto loan… then finish lastly with credit card 4.

This method makes mathematical sense and provides emotional satisfaction along the way.

Regardless of the matter at hand, I rarely advocate following any “method” 100% to the tee… most times I will work out some combination of several that work best for me.

That said, some would be much better off following a specific regiment wholeheartedly.

Thanks for the question Luke… what method do you employ?

By: Luke Grand

Luke Grand — Tue, 07 Jul 2009 12:37:30 +0000

Keep hammering away at that debt – it will be gone before you know it! Are you using the debt snowball to pay off the smallest debts first, or some other method of lining them up for payoff?

By: Aaron Wakling

Aaron Wakling — Tue, 07 Jul 2009 07:15:20 +0000

Great Blog post. I am going to bookmark and read more often. I love the Blog template