The plan is to get rid of this debt as soon as possible. I think I'm going to freeze our Citi card for the next few weeks and pay off this new Best Buy balance in January. It will be hard but January should be a quiet month with no major expenses or birthdays. I will make minimum payments to Citi and Discover and send any extra money to Best Buy.
On a positive note, I made another payment to Discover and the new balance on that card is $1,800. Hopefully I can get rid of that card in February.
HS
12 comments:
Wait - didn't you say the Best Buy balance is 0% for a certain number of months? If that's true, wouldn't you want to make small payments on that so you can use the cash flow to pay off debts that are charging you interest?
It just doesn't make sense to pay off quickly a debt that is interest-free when you could be using that money to save interest elsewhere.
At least you have a deferred interest, but you need to pay this off ASAP! Congrats on the Discover card.
YES, 0% interest for 18 months but this was an unexpected emergency so the plan is to pay it off quickly...
HS
I just don't get it. Wouldn't you want to be in better standing, sooner, with your Discover and your Citi cards than have a paid-off Best Buy card? And wouldn't you rather NOT pay as much interest to the Discover and Citi while you pay them down?
444- You are right, it's just mentally this threw me off so part of me is like get this out of the way to get back on track...
Also the Best Buy card has 24.99% APR after 18 months so I see it as a more evil cc.
HS
Dude, just set up automatic payments for $100 a month for your Best Buy account. Put your larger chunks of money toward interest bearing cards. Duh.
But 444 is correct. Concentrate on the ones with the active interest and THEN pay off Best Buy.
I don't understand why you didn't just pay cash for the fridge and not pay more on the credit card balance.
I don't know why you bother to worry about the credit card debt when you really have no intention of living debt free, whats the point of paying it off so quickly when in a few months it will be right back up where it was.
Tina
A fridge is really something you need. If you feel like you spent the amount on it that makes sense for your income and what it provides, there's not a whole lot to argue with. Like I said, I'm lucky to have the cheapest mother on the planet and I can "sick" her on projects like that and get super-cheap results.
A fridge is not like an iPhone or other random consumption. Just pay that card off before the interest starts kicking in.
OUCH! Good Luck - you will have it gone in no time at all
I don't understand why you didn't just buy a second hand one at a garage sale?
I love garage sales but I have never seen anyone selling a fridge at a garage sale... the issue with buying used was I would also have to recycle the old one, by law I have to recycle the freon etc...
HS
Post a Comment