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There's two ways to deal with debt - either pay done the highest interest card first or pay off the lowest balance first (and move the high interest card into a 0% APR card). The first way will prevent you from having to pay any more interest on the highest amount. Its good but it takes a long time to pay off the highest interest (in your case) and you might fall back on bad spending habits in the mean time. Paying off your lowest balance will give you the psychological satisfaction of killing off debt one at a time. I went with the second approach personally wheN I was paying off my debt. Killing off smaller debt helped me psychologically more than anything else. I moved my highest balance/interest onto the Chase Slate in the meantime (0% transfer, 15-18 months 0% apr) so that I could whittle that down as soon as I killed the rest of my cards. In terms of keeping track of your expenses and a monthly budget, look into some different tools. I use YNAB and I really enjoy it - with the caveat that its not the greatest forecasting tool. They also have a great forum about budgeting with some people who sperg out over the features of the product. THey have some free classes you can take to really take control of both the software and your budget. That's my only thought from glancing over your plan at the moment.
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# ¿ Apr 8, 2014 20:34 |
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# ¿ May 11, 2024 07:44 |
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Hand of the King posted:I'm going to use Mint. Maybe I'll check out YNAB but I don't want to pay for it. YNAB has a pretty long 34 day trial. You should definitely check it out if you have the chance right now. The difference between Mint vs. a tool like YNAB (or some other budgeting tool) is that whereas Mint just provides a backwards glance at your spending, a true budgeting tool (whether its a spreadsheet or YNAB) tells you how much you actually have available to spend. I'd vote debt snowball. Getting one credit card entirely to zero quickly is so satisfying.
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# ¿ Apr 9, 2014 00:43 |