Way to go on paying off the Macy's card! Now take that $25 per month and the $80 per month you freed up from lawn service and cell phone, and the $100 from eating out, and put all of that $205 per month towards the Best Buy card, religiously, every month, month after month, until it's gone.
Sam wrote:I wouldn't cut back on the 401k at this point. First, getting the match is increasing your overall compensation. Second, your wife is not working so I assume she is not putting anything aside for retirement, so as a couple you will be behind overall. Third, you are already in your 30s and you've likely got years of debt repayment in front of you. If you cut out your retirement savings until you are debt (nonmortgage) free, you'll be in your mid to late 30s. You can't get those years of contribution back, your wife is likely not contributing (maybe in your next post, talk about what you have saved, you home, your retirement savings, etc.) and you probably started late based on the fact that you were in grad school.
At this point, I would leave it as is and focus on killing the little debts and getting your budget under control. Once you have a better sense of things, I would look at the time share, the cars, the home equity loan, the retirement savings, etc.
I absolutely agree with Sam on this one. Don't, DON'T cut back your retirement contributions! Make that contribution untouchable. The rule is "pay yourself first." Then make the cuts in your monthly budget and snowball them to pay off the debts. Don't steal from your future self any more (you have already done $250K worth of that, right?).
I promise, you will make more progress if you mostly use reductions in monthly bills to pay off debt than if you mostly use windfalls (like money from selling stuff on Craigslist). The windfalls certainly help (as in the case of the Macy's card! yay!), but I can tell you from experience, it's chipping away month by month, gradually freeing up more and more minimum payment and monthly expense money to throw at the debt, that will make things happen.
Does one of you know how to cook? If not, time to start accumulating new skills. You can easily spend $40 a pop, or more, per meal for the two of you to eat out -- but you could make a bunch of meals with $40 worth of groceries!
Do you make a monthly spending plan? As in: these expenses usually come out of paycheck one, and here's what we usually have left over; these usually come out of paycheck two, and here's what we have left over, etc.?