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Day 2 of no BK!! and a question

July 22nd, 2010 at 02:25 pm

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?

13 Responses to “Day 2 of no BK!! and a question”

  1. creditcardfree Says:

    Congrats on Day 2 of no BK!! I'm glad it is getting easier.

    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?

  2. Broken Arrow Says:

    Congrats! But you know, you've blogged about it so much that I'm now really curious about what they taste like. Big Grin

  3. MonkeyMama Says:

    me too - LOL.

    How fast can you save $1k? My answer is, it depends.

  4. north georgia gal Says:

    If I took the extra money($100 every other week) it would take me 2 1/2 month to save the money.

    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.

  5. MonkeyMama Says:

    It's a toughie. With the interest rates so high, I think I'd tackle the debt. One reason I say this is because it seems your family has been willing and able to help you here and there. If you think they could help if you got in a REAL bind, in the interim, I think I'd slay all the cards.

    BUT, building a $500 efund first, may be a good compromise.

  6. creditcardfree Says:

    I tend to agree with MonkeyMama because of the interest rates, which is the reason I asked about them. I like her compromise also.

    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!

  7. north georgia gal Says:

    Yes that would be the plan. Thanks for the advice!

  8. jolie Says:

    I would tackle your debts first. With $100 every two weeks to pay extra, I would tackle first your garage bill. In less than once month you would have it off your list.

    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.

  9. Just a thought Says:

    Nice job on the BK! I think that if you can be sure you won't use your EF when you overspend in another category, that you should save a small EF to prevent yourself from having to use the CCs if an emergency arises. However, if you think you will "borrow" from the EF to cover other expenses, I would just pay off the debt first. You seem to be doing a good job of not adding more charges to the CCs.

  10. wowitsawonderfullife Says:

    Sounds like you are doing really well! I've never had an EF until I joined this blog and now that I have it I can't get over what a weight has been lifted off my shoulders. It's really helped me feel like I'm not at the end of my financial rope all the time. Just my opinion. I get what all the others are saying and maybe a small EF once you are current on all your bills will be a good fit for you.

  11. baselle Says:

    Congrats on the second day holding firm. I wouldn't declare victory yet, but you're 2 for 2 and that's something to celebrate.

    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.

  12. north georgia gal Says:

    Thanks everyone for your answers! I think I am going to continue with the debt payment before getting serious about the EF.

    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!!

  13. Looking Forward Says:

    Great job with everything! I tried to order Cini Minis the other day because I was curious to try them. However I was too late, it was noon.

    I agree with the ideas posted above - a little to savings and a lot to debt payoff.

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