Yesterday, I posted my update to the Danielle Deficit for January. I'm making nice progress. But when I post for February, I'm going to make progress that makes me giddy. Last year, I received a year end bonus. I put it all toward my little financial situation. As I've stated before, I'm not a Dave Ramsey girl. I'm not paying off the lowest balance. To me, that seems silly because it is at 2% on my DMP. Instead, I'm paying off the highest interest rate. Shittybank. Sorry, Citibank. 9.99% This gives me great pleasure since the bastards tried to increase my rate to something like 900% last spring and I rejected the terms. I.Hate.Them. Sooooo happy that they will be paid in full.
This has put a spring in my step and it has activated a certain area of my brain known as CRAZY. Those of you who know me personally or read Kittenagogo know and love (or know and tolerate/fear) CRAZY. This is the uber-competitive CRAZY side of me that must win at everything. Now, CRAZY is activated. CRAZY wants to win at becoming a millionaire. CRAZY has decided that the next step is to beat the shit out of the remaining credit cards. I don't mean a little bit here and there. I mean, Jersey-style Sopranos CRAZY Pine Barrens in the snow Fargo wood chipper beat the shit out of it.
I advised Money Coach of this. I tried not to let too much of CRAZY come through, but I think he knows about her anyway as I have a general inability to self-censor. But, whatever CRAZY wants, CRAZY gets. She's like that. (I honestly hoped to keep her pretty well hidden on this blog, but I didn't realize how much she would enjoy paying off debt. I knew she would enjoy making the spreadsheets, but it wasn't enough to get her fired up into all caps. And please note, she does NOT like when you use an exclamation point after her name. All caps, no exclamation point. Thanks.)
CRAZY's plan:
1. Kill Citibank FOREVER. They are dead to us now.
2. Discover is next. They are the next highest interest rate at 6.99 percent. At least 70% of all extra money in budget will be sent to pay Discover each month. If I send $1000 to MMI each month (which is feasible), then I can have it paid by October or November. However, CRAZY wants it paid off sooner, so we need to sell some stuff. All money made from things in consignment and any other sales goes to MMI for extra payments.
3. Then, Discover is dead to us. Although they were kind enough. I don't hate them like I hate Citibank.
4. Chase/Wamu. Attack with same force that previously went to Discover. This should move quickly since the interest rate is 2%. I never liked this card. I do, however, like Chase.
5. Then, finish with lowest balance, which should take no time at all since it will be paid on the entire time that I am attacking the other cards that I hate. Frankly, the Chase/Borders card was always my favorite anyway. If I were to keep a card for financially responsible convenience use, this would be the one. With the aggressive level of payments that I will already be making, this will take no more than four months to pay off.
I am going to kick this debt in the ass. I will be paid off VERY quickly. I was originally happy with the thought of 2014. Then by the end of 2011. Now, I am aiming for earlier than the end of 2011. I don't know if it will happen before the end of this year, that may be a bit too aggressive, because I also intend to save quite a bit, but it won't be far into 2011.
DEBT, YOU HAVE NO CHANCE OF SURVIVING IN THE HOUSE OF CRAZY!!!!!!!
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{ 4 comments… read them below or add one }
Thanks for sharing the CRAZY part of you on your blog.
I think it’s awesome you are so fired up about getting out of debt! Looking forward to keeping track of your progress.
LOL I love that CRAZY is getting in the game. There’s no stopping you now!
I have to admit that when I started paying off my credit cards, I paid off the one with the lowest balance first. It gave me a sense of accomplishment and increased my drive to pay off my cards. I didn’t do it that way because of DR. I actually think he’s a bit of a nutter about some things. I did it because I know small achievements make me want to accomplishment more. I guess it’s about knowing what works for you.
I also have to admit to having a bit of CRAZY in me too. I was determined to pay off my consumer debt before the time that CCC said I could. They said it would take 3 years. I did it in 10 months. Team CRAZY!
Isn’t it wonderful how CRAZY can motivate? She’s the one who keeps me color coding and alphabetizing. She also keeps my pen holder really pretty at work.
I just messed around with some budget spreadsheets to see what it will take to really kill Discover. Now my stomach hurts. A lot. CRAZY has a tendency to bring on stomach discomfort. Oh well, whatever CRAZY wants, CRAZY gets. There’s no stopping her!
Thanks for all of the support!