Chipping Away - Busting Debt in Boston

A personal finance weblog about my own journey to eliminating my debts and building net worth. Hopefully this will serve as a place for me to share and discuss my strategies and ideas, as well as keeping me on track and focused.

7/04/2006

Roundup - A Summary of Debt

Since this is the first month of my new blog, I figure a good place to start would be to post a roundup of all my debts and associated interest rates. So without further hesitation, my total debt picture in descending order of interest:

  1. Citibank Card - $7,302.23 - 15.990%
  2. Car Loan - $3,802.38 - 13.25%
  3. Student Loan #1 - $15,843.06 - 7.14%
  4. Student Loan #2 - $2,839.87 - 5.00%

There it is, a grand total of $29,787.54 of debt. As I said before, ick. So first things first, look at those interest rates! Based on those, my first order of business is to try and reduce those interest rate numbers as much as possible, so my total payout for these amounts is as close to the actual principal as possible. I've applied for a Capital One card with a promotional balance transfer rate of 0% for 12 months and indicated that I'd like to transfer the full balance of my Citibank card over to it. Once that goes through, I'll have no balance on the Citibank card and will have 12 months to pay off the $7,300 on the Capital One card with no interest.

Recently I also got an offer in the mail from American Express which specified 2.99% for the life of any balances i transfer on application. I'll have to think about whether I want to utilize that right now, though it seems like a no-brainer to apply it against my smaller student loan and my car loan...

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