Now that we have closed on the house, and spent tons of money on the sewer connection, electric connection parts, propane tank, furniture, etc., etc., etc. it is time to start planning for the next phase. We have a little bit more to accomplish before we leave to go back to Arizona, but for the most part we are done spending money. Now we are going to be on a mission to pay off our credit card debt.
We have less than $5,000 to pay off, which is not a lot. We have had way more credit card debts in the past, but paid them off long ago. We have tried really hard to keep those bills in check. I have only used credit cards for medical bills–and those credit cards have come in handy when I needed them.
Along with the credit card balances we have on three cards, we also have a couple of medical bills that are being carried by the medical facilities. I thought about paying them off with one of the credit cards, but those facilities are not charging interest on the balance, so I am just making the monthly payments on those. Once we pay off the credit cards, I will use the money we have been paying on the credit cards to pay off those medical bills.
The last thing we have to pay off is a consumer credit debt we just incurred to purchase a washing machine and dryer for the new house. I would have liked to have waited until we had the cash to pay for them, but the company offered a payment plan
“12 months same as cash”, where we can take a year to pay for those two items, and pay no interest on the debt. It made sense to us to go ahead and get them now, and save the money we have been spending at the Laundromat. That $12 a week for 52 weeks will almost pay for the purchase.
So, here is our long term plan for 2012:
- Pay off three credit cards
- Pay off two medical bills
- Pay off one consumer credit account
- Put $2,500 a month in a savings account
- Reduce the amount we spend on groceries by 25%
- Close our account at Bank of America (we have already opened a new account at a credit union)
- Eat out less
That is my financial plan for this year. Are you taking any steps to change your financial status this year? Do you set goals for savings or for paying off bills?
Judy Bell says
January 23, 2012 at 2:34 pmI have been lucky to maintain no credit card debt by paying it totally off each month. The money that I save on rent by volunteering I use for upgrades and repairs to the rig. Since I travel solo, I seldom eat out. It’s too boring. My plan for the year is to keep doing what I’ve been doing these past six years and try to save a little from my fixed income. 🙂
Shawn says
January 23, 2012 at 4:25 pmThat piggy bank looks like I feel today! I have had some unexpected expenses, groceries up, electric up, all utilities up, pay check not up! : (
We were planning a cruise but I’m considering canceling and just eat the deposit loss!
Good luck on your plan. If you can save that much a month…Good For You!!!!!!!
Gaelyn says
January 23, 2012 at 6:13 pmIt’s a great plan. I have no credit card debt. Did pay off a medical bill last year and plan to pay off the student loan this year, if they are willing to deal a little. Maybe dump BofA and go totally with my Desert Credit Union. Then once back to work, actually start saving again. I want to travel overseas next winter for several months.
Cindy Of PEI says
January 24, 2012 at 7:00 amCute pig! Lovely post, hope all goes well and on track for 2012. What a great plan and approach to it as well. You have inspired me to set a credit goal, yup spend less and pay more, oh and try and work less also, my gosh age has caught up with me this last year..I wonder if that is that evil word men______e. Take care, Cindy