I've been working on and off over the years to get out of debt with little success, so hopefully posting everything in a public place will help keep me more honest. I'm 25, single and frustrated with my debt, which is at $18,328 total.
I've been struggling for the past couple years and every time I get the debt down I raise it back up, but I finally had my Dave Ramsey "hingepin" moment a couple months ago, cut up the CC's for good and got a 2nd job.
CC#1: $4,251.11 - 13.24% - min $85
CC#2: $3,162 - 0% through Sep '11, then 13.99% - min $35
CC#3: $183.42 - 0% through Oct '11, then 23.99% - min $65
CC#4: $57 - 17.24% - min $25
Personal Loan: $4,235 - 12.82% - min $135
Student Loan: $6,313 - 6.8% - min $102
Roth IRA & 401(k): $20k
Car: Paid off, 10 yrs old 100k miles
FT job - $2000/month (after health insurance & 3% 401(k) match)
PT job - anywhere from $400-700/month
Order of business for debt repayment: CC#4, CC#3, CC#2, CC#1, Personal Loan, Student Loan
I've struggled with my budget for years so switched to the balanced money formula with great success. Needs are $1,200/month (not including debt repayment), Savings are $180/month to Roth IRA, Wants no more than $300 (mostly cell phone, pet expenses, dr/meds, eating out) and everything else to debt (between $700-1000).
I tried to cut my living expenses by getting a roommate, but somehow that actually increased them... sigh. However, gas has gone down considerably since I live 6 miles or less from both my jobs. I'm also selling all the extra junk I can get my hands on and applying it straight to debt. I know that I probably should be putting the $180 from the Roth IRA toward debt, but psychologically I just can't bring myself to do that.
Only major future expenses I can see are vehicle & moving expenses. I plan to drive my car into the ground, but worry that I'll need a newer one in the next 2 years (if I stay put). There's also a potential cross country move in the next few months, which would be a great career move I don't want to pass up.
I know I can get myself out of this in under 2 years if I just stay at it, but I worry about staying motivated. The process is slow going (obviously) and once I knock the 2 smaller debts out (CC#3&4) then it's going to be awhile before anything else is paid down.
Anyone have advice on how you kept yourself engaged in the long, dull periods? Any suggestions or criticisms for how I'm handling things? I greatly appreciate any feedback!