Friday, February 29, 2008

Talking to a CPA

Tonight I hung out with my good friend who is a CPA. We went out for wings and after a few hot ones the subject of taxes came up and somehow that led to my debts. He asked how much debt I had and I mentioned to him the events of the last couple of months and the current balance with CITI. I explained to him that my goal is to pay off the smallest debt first and ignore CITI for a few months. He asked me about interest rates and suggested that I pay off the higher CITI balance which accrues interest every month, around $100. Here is the breakdown of the debts by interest rate:

CITI: $10,983 balance, interest rate is 11.99%, minimum payment is around $225.

CITI Professional: $1,758, interest rate is 0% until August 2008 with minimum payment.

BEST BUY: $1,706.59 0% until January 2011 with minimum payment, usually $20.00.

ROOMSTORE Furniture: $549.59, no payments, no interest until August 2008.

So I’m debating whether to pay off the furniture in March and make some progress (the Ramsey method) or pay off CITI and save some interest until July (his advice). I really don’t know how to proceed, I think I want to pay off the furniture and be done with that account… that way I will only have 3 accounts on this blog instead of four.

Any advice?

Tuesday, February 26, 2008

Welcome Back

Hi, I’m back, I took a two month break from my blog and managed to add more debt. Something happened, I felt like my life needed a change so we managed to add more debt to the household. So here I am, I’m back to tell this blog about my debts. I removed most of the previous posts that had nothing to do with debt and instead I plant to focus on my debt and provide updates about repayment.

CITI was doing great until I decided that my living room needed new furniture and a brand new HDTV along with a surround system. I have no idea what got in to my head and how my wife approved but here is a breakdown of my new accounts:

CITI: $10,983
CITI Professional: $1,758 (don’t ask).
BEST BUY: $1,706.59
ROOMSTORE Furniture: $549.59

So, please join me once again as I attempt to pay off all this debt. The goal to be credit card debt free is November 2008.

Monday, February 25, 2008

Come Back Soon

As you can see, this blog is getting a make over! check back in a couple of days...

HS