I think that I may have broken the addiction because it hasn't even been hard the last two days to not stop to get cini-mini's.
I filled up the gas tank yesterday for $35. I still have $27 left in my gas allowance for the week. This will go toward spending money for next week, as I am short. Ideally, I would put the money into savings but I am not to that point yet. I need every penny to make my budget work.
Question: Once I pay off the property taxes, do I continue to pay off credit cards or should I build my emergency fund instead? I have been thinking about this alot lately. Not sure what the smartest thing to do is. What do you think?
Day 2 of no BK!! and a question
July 22nd, 2010 at 02:25 pm
July 22nd, 2010 at 02:52 pm 1279810347
If you are in default on any payments you should catch up before EF. If current, I think an EF would be a good idea, before extra payments on debt. It looks like you have the $1000 goal.
We could likely give better advice if you would create a post about your debts, minimum payments, interest rate and extra cash you have available for debt or savings.
Are the property taxes, back taxes or taxes you have to pay every year in the future?
July 22nd, 2010 at 03:13 pm 1279811631
July 22nd, 2010 at 03:44 pm 1279813456
How fast can you save $1k? My answer is, it depends.
July 22nd, 2010 at 03:49 pm 1279813742
The balances are posted in my sidebar, not sure on the interest rates, but I know they are extremely high due to the time period that I couldn't make any payments to them(or thought I couldnt, cause look at me now!)Minimum payments range from $18 to $36.
July 22nd, 2010 at 03:55 pm 1279814118
BUT, building a $500 efund first, may be a good compromise.
July 22nd, 2010 at 05:32 pm 1279819969
Will you be making minimum payments on all the debt and while you focus on the EF and then snowball the debt? Good plan if that is the case!
July 22nd, 2010 at 05:34 pm 1279820047
July 22nd, 2010 at 07:07 pm 1279825633
Then write down the remaining debts and check their most recent bill/statement to you to see which is the highest interest.
Make the minimum on everything, but apply your extra cash to the target debt. Snowball the debt money. When that debt is paid off you then have your $100 every two weeks plus the minimum of the one you just paid off.
You can do it.
July 22nd, 2010 at 11:57 pm 1279843035
July 22nd, 2010 at 11:58 pm 1279843083
July 23rd, 2010 at 04:30 am 1279859405
Since you've got on a roll with getting rid of the Chadwicks' card, I continue with the debt snowball and hit it hard. Another possibility is to kill a card and as a reward add $100 - $200 to your EF before going on and killing the next card. You kind of do both, but you keep the momentum of the debt snowball, which is precious.
The one thing that you don't want to end up doing in the EF vs credit card is have $10K in savings and $10K in debt. You would think that's great, and it could be worse, but if you been saving the 10K you don't want to blow it on paying off the 10K debt so emotionally you're still trapped by debt.
July 23rd, 2010 at 04:14 pm 1279901671
Okay Just a Thought...are you my twin seperated at birth?? That is my concern as well. When I pay a bill, the money is gone and I can't get to it later so I have to figure something else out. But if it is in savings, that that may be how I figure it out!!
July 24th, 2010 at 03:46 pm 1279986368
I agree with the ideas posted above - a little to savings and a lot to debt payoff.