S
Singularity.EXE
So I've recently decided to do something about the credit card debt I accrued during my first stupid years of college. Over the first two years where I worked near minimum wage jobs I built up $3,000 worth of debt. Now this might not seem like very much to most of you, but I'm operating on a $10.50/hour income. So the debt is manageable, just uncomfortable. I make all my monthly payments, and generally don't suffer too much, but I want to be done with this debt. And with my current rates and amount of debt, despite making everyone of my payments, the amount owed has not budged an inch. And just for full disclosure here are the amounts and rates of each card:
Card One
Max amount: $2,000
Rate: 23%
Total Balance on Card: $1,945
Card Two
Max Amount: $500
Rate: 18%
Total Balance on Card: $490
Card Two
Max Amount: $700
Rate: 15%
Total Balance on Card: $550
So I have three plans of attack which I will give ridiculous names such as:
The Robotic Loan Shark Gambit!
This plan consists of me going to my bank and requesting a loan, roughly in the neighborhood of $3,000 dollars. The point of this would be to consolidate the debt into one big lump, which hopefully has a lower rate then each of my other credit cards. Furthermore, it would make my life easier to pay one large monthly payment, then dashing to a number of different websites, with different due dates and paying them individually. This won't work if the bank offers a higher rate then what I am currently paying on my various cards at the moment though.
Go BIG or Go BANKRUPT!
This plan is one of pure attrition. I would cancel all scheduled monthly payments from my current bank account. This means no WoW, no X Box Live and no Netflix. Then, I would use my entire paycheck (usually 400-600 dollars every two weeks) to pay enormous amounts off of my credit cards, and then just use the card I paid down to survive until the next paycheck. This would require a Spartan existence until my cards are paid down though, as any debt I continue to incur on my cards from pure survival will make paying them off that much slower.
Bleed it dry...
The least dramatic of my ideas, this simply would entail adding an additional $100 per month in payment to my lowest card and working up from there.
Card One
Max amount: $2,000
Rate: 23%
Total Balance on Card: $1,945
Card Two
Max Amount: $500
Rate: 18%
Total Balance on Card: $490
Card Two
Max Amount: $700
Rate: 15%
Total Balance on Card: $550
So I have three plans of attack which I will give ridiculous names such as:
The Robotic Loan Shark Gambit!
This plan consists of me going to my bank and requesting a loan, roughly in the neighborhood of $3,000 dollars. The point of this would be to consolidate the debt into one big lump, which hopefully has a lower rate then each of my other credit cards. Furthermore, it would make my life easier to pay one large monthly payment, then dashing to a number of different websites, with different due dates and paying them individually. This won't work if the bank offers a higher rate then what I am currently paying on my various cards at the moment though.
Go BIG or Go BANKRUPT!
This plan is one of pure attrition. I would cancel all scheduled monthly payments from my current bank account. This means no WoW, no X Box Live and no Netflix. Then, I would use my entire paycheck (usually 400-600 dollars every two weeks) to pay enormous amounts off of my credit cards, and then just use the card I paid down to survive until the next paycheck. This would require a Spartan existence until my cards are paid down though, as any debt I continue to incur on my cards from pure survival will make paying them off that much slower.
Bleed it dry...
The least dramatic of my ideas, this simply would entail adding an additional $100 per month in payment to my lowest card and working up from there.
I accidentally did the original calculation using the "max debt" numbers, and not his actual debt numbers... oops. The correct interest is what I changed it to... 20.705%.
