January Debt

Happy New Year! I wish for everyone a debt free 2009! I was just paid my bonus of 10k. Although it was reduced because of a horrible economy, I'm just happy I got something! Maybe if things get better this year, it'll increase dramatically next year! After paying down some debt and putting the rest in savings, here is my new debt total:

Citibank 1- $0 (Paid off!)
Chase - $5,000
Citibank 2 - $4,500
Discover - $3,500
Stafford - $6,761.87

Total debt: $19,761.87

Not too shabby! Last month I was at a little over 21k! It's dropping slowly, but surely! I'm thrilled to have paid off the Citibank card.

I have decided to close the Citibank card. The @%%@@%^@!! decided it was time to raise my rate to about %21.99!!!! Can you believe it? I've owned this card since 1994, always made my payments on time, charged at least $1,000 a month, and this is how they thank me?! The part that really kills me is that I have another Citibank card, in which they did not touch! I was fuming! I called them and told them I am opting out. This basically means that I do not accept the new rate, and that once the card expires, it will be closed for good. I'm not giving them any more money! And when I paydown or transfer the other Citibank card balance, I'm cancelling that as well. I decided they do not need my business any longer and thus, I will be flipping them the bird. Good bye you jerks! So much for a bailout, huh?

Because my balance transfer rates are going to expire in march, I'm moving some money around. First, I will transfer out the Chase balance to the Citibank card. The transfer fee is 3% of the balance, at 0% until the end of the year. But wait! We're not finished. Since the Citibank transfer rate is also expiring, I will be moving all that money back into the Chase card at .99% apr until around march 2010. There's a 3% fee as well, but capped at $199. Then, I will move the discover card balance to the Chase card. That way, I have it all on the Chase card. I will paydown the balances a bit more, and pay off the balance transfer fees next.

Since i'm closing my other Citibank card, I will no longer have the balance transfer option, except to the discover card and my amex card. I'm hoping this will motivate me to aggressively pay it down. It's a bit of a risk, but it'll give me that sense of urgency, correct? Besides, I think having 3 credit cards is more than sufficient.

On to Goal #2 :Pay off charges from the month of April 2008. These are the charges I have from April:

4/8/08 - $600 Expenses from Amsterdam
4/9/08 - $700 Expenses from London
4/22/08 - $700 Clutch replacement on my Honda (gotta love these cars!)

Total: $2,000

I will pay these off with money left over on my paychecks. In addition to doing this every paycheck, I will also make weekly payments to charges made under $100. I have about 15 of these, in all, these should be completed by end of April. That's my goal. I also will pay all new finance charges to make the numbers round.

Wish me luck!

Debt List

Ok,

So a bit late, but here is the grand tally of all my credit card debts in order of highest interest to lowest interest:

Citibank #1 - $1,130.00 @ 12.99% (Fixed)
Chase - $5,260 @ .99% (Ends 03/31/08)
Citibank #2- $4,700 @ 0% (Ends 03/31/08)
Discover- $3,900 @ 0% (Ends 03/31/08)

And my student loan:

Stafford- $6,833.53 @ 4.625% (Fixed)

Total debt: $21,823.53

My goal is to pay off the credit cards in 2009 since the student loan is still somewhat tax deductible (not to mention a very low fixed rate!). So the debt I'm looking to pay off is $14,990. Although it might be a bit of a stretch, I'm going to attempt to pay off 1/2 of this by end of 2009. I think I can do it, it's a matter of discipline!

Goal #1 - Pay off Citibank Card #1. I will be receiving my yearly bonus in mid january. With this bonus, I'll be able to pay this off, and have money left over. The remaining bonus will be used to build up my emergency fund and start paying down the Chase card.

That's it for now. Have a great new year, and here's to a debt free 2009!

New Years Resolution 2009 - Zero Debt

We are just 17 days away until the new year. This year has gone by so quickly! As I get older, the days seems to get faster.

So, in going over my new years resolution, I've decided on 2 things I want to concentrate on: 1. Lose 30 pounds 2. Pay off my debts.

1. It was years ago when I was wrestling at a weight of 160. Although that was a bit heavy (I am 5'7") I've always been a stocky guy. But now, at 210, I want to drop to at least 180. Hopefully, this year, i'll hit that goal.

2. Boy, where do I start? Let's just say I have lots of it, and I am determined to pay it off in a couple of years. The embarrassing part? I work in the financial world, I should know better. Trying to keep up with the Joneses, I got in some deep waters with debt. Now it's time to pay up and quickly. As such, I will keep anonymous :)

This is where you come in. Help me to stay on track! I will be posting on a weekly basis my progress. I hope, with motivation from everyone, I'll be able to do this.

I will be posting my debts soon for all to see my shame!

Thanks