Saturday, January 3, 2015

2015 Planning: Debt Goals

2014 was not a great year for our mission to get out of debt.  I am resolved to get back on track and see some major debt reduction again. I’ve set my sights on CC #3. It’s not our smallest debt but the medical debt has no interest and is not on our credit reports so I don’t feel it’s the highest priority. It’s also not our highest interest debt, the consolidation loan currently has the highest interest. However, on CC#3 the promotional 0% interest rate will expire this summer and it will become the highest interest debt. The amount of $4,730 is small enough that it could be paid off in one year if we work really hard at it. It will be a challenge to get it paid off over the next twelve months and rests on some assumptions that we’ll have a relatively calm year in terms of emergency fund usage but I getting this paid off would be a major milestone for us.

Debt Goals

Pay off CC #3 balance of $4,730

Continue to pay minimums on all other debt for a total of $11,300 in debt reduction (including CC#3).

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