It's time to check in on our debt payments and savings goals again. If you're joining us for the first time, you can read about our decision to publicly keep track of our debt here.
In one year, the Billfold community participating in monthly check-ins has paid off at least $281,952.85 in debts.
Let's get straight to it.
Our friends at LearnVest has a piece by a woman who paid off $90,000 worth of debt by examining her finances and learning to cut back.
I've read the snowball vs. avalanche method of paying off debt, and I figured I'd tell you about my own personal method—or at least, the one that I've used a couple of times over the last few years that has helped me tons. This method requires that you've been saving for retirement via a 401(k).
Michelle: I'm 26, a senior corporate tax accountant, and I live in Rockland County in N.Y.
This month, Logan got her Barclay card under $1,000.
It's the end of February 2013 and it's time to check in on how we're doing with our debt and savings.
Logan: IMPULSE PAY OFF.
Logan: I just impulse paid off one of my cards. Haha. The balance was $300 and I owed $100, and so i just paid it off wild and crazyyyyyy.
It's time to check in on our debt payments and savings goals again.
If I ultimately have to either stop paying my loans (which are in deferment while I'm a student) or go back to paying just the minimums on my cards, what's the better choice? The dollar amount I would save monthly is the same.
It's time to check in with our debt payments again.
I've currently got two credit cards with balances: one with $5,500 (interest rate is 9.9%) and one with $1,700 (with a 20.99% interest rate). I've got about $4,000 in my Roth IRA, none of which is invested. I'm trying to figure out if it's worthwhile to withdraw the $1,700 from my IRA to pay down the higher-interest credit card and focus all my monthly payments on the lower-interest one. I've always been told "never borrow against your retirement," but it seems that this might be a good idea. Help?! — N.C.