Friday, May 06, 2005

The Payment Strategy

The whole plan is to pay off the smallest bill first, take that money and add it to the payment on the next smallest bill until it's paid off, take that combined amount and add it to the next smallest bill, and so on.

I had been paying Household Bank $100 a month, instead of the $30 minimum, because I want to pay them off. Everyone else, I've been paying the minimums.

When I added the $50 Security payment to the $75 B&W Payment, I made two payments of $125 to retire the debt. I will add the $125 to the $100 payment I've been sending to Household Bank, and accelerate the pay off on that card. As soon as that's paid off, I'll add the $225 to the next minimum payment.

Next week, I'll update the table in the right column, removing Security Finance, and adding my next payoff goal. I will always leave the top line as paid as a motivator.


Blogger The Complimenting Commenter said...

Congrats on making your first two goals. That's a great accomplishment.

1:55 PM  
Blogger Thao said...

Hoorah for you! I implemented the same plan. I paid off one credit card a few months ago. What a good feeling. (Then I got a new card. Baby steps.)

6:02 PM  

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