Ok … so it’s time for the big reveal. I’ve put together a list of all my debts (found a great excel spreadsheet that was free to download) and here are the grim statistics (wish I was more computer savvy and knew how to copy and paste the actual spreadsheet I’m using … something I’ll have to figure out):
Debt Balance APR Minimum Payment
Citibank $9628 1.99% $200
Discover $227.23 16% $20
Student Loan 1 $11744 $265.26
Student Loan 2 $2098 $58
Medical Bill $1629 $75
So I know what you’re saying … doesn’t look so bad, I thought this guy mentioned something about $30,000 + in debt. Well a couple of things that I did last week and didn’t have time to mention.
1) I sold my 401K and cashed out a meager $13,000 and change, got hammered on the taxes and paid of a larger credit card debt no longer listed above.
2) I negotiated hard with Citibank to give me a balance transfer offer of 1.99% until 12/10 (seems like those 0% offers are getting harder to find) and transferred over the balance from two cards that I was previously paying higher interest on.
Total Debt: $25,326
Which still isn’t a pretty number. But a few weeks into this project and I’m still very motivated, haven’t used a credit card, and have even started to make a few lifestyle changes.
I’m not sure what the experts say about the 401K move I made, but I’d like to think getting out of debt SOONER will allow me to play catch up on actual investments at a later date.
What do you think about the 401K decision? Has anybody explored debt consolidation?
By the way, here’s a link to the debt tracking worksheets I mentioned … very helpful stuff on this guy’s website –