Rules for Relieving Debt

In the face of some unforseen expenses, Michele and I have done some things to aid our debt payoff. Here it is, step-by-step. :-)

1) Sign up for 0% APR credit card (for a year, then 10%).

2) Move $2,500 debt off active credit card, and $6,500 off inactive credit card.

3) Keep the active card blanked out from here on out. WHOO-HOOEEE!

4) Finish paying off debt for french doors, new windows: $2,300. Paid off in 2-3 months.

5) Free up $300 a month from that debt and apply half of that to savings, half to car payment. Make other bulk payments to car as well. Paid off in 5 months.

6) When that $188 is freed up, apply $200 to savings and $288 (plus an existing $712) to inactive credit card, totalling about $1000 per month. Paid off in 5 months.

7) With inactive card, french doors, and car paid off...an extra $788 is yours per month! Now use that to pay off the new credit card just as it starts kicking in on finance charges. Paid off within a year, easy.

Full proof! (Let's see if I agree in a year)