Sooner Than Anticipated

Monthly Payments, originally uploaded by Dramatic. These are my payouts from Sept, Oct and December.

This month I will pay off an extra bill (DFS). One more than the original 2 I espected and I am paying off more than half of one of my remaining bills. Which means that by tax time 2007 I should have just one outstanding debt remaining.

Since I have the opportunity to pay off DFS, I am dipping into my savings to do so. This hurts a little bit. I will, however, be able to replenish my savings pretty quickly, as the absense of DFS allows me to almost double my monthly savings.

I know my debt reduction strategy is not for everyone. I simply take a big axe and swing at the little trees first. They are in my way. When I am done with those I work on the larger ones. I can take smaller, better placed swings which will bring my trees down with less effort. Or I just paid off the smaller, easier ones first and redirect all or most of my funds towards the larger ones.

Not for nothing, I am that much closer to my goal. I am still trying to figure out if a “Debt Free Xmas 2007” if feasible. Might have to defer my debt freedom until Easter 2008.

Last month I made the decision I wasn’t going to rush and pay the bills off just because I had the money. I paid off all of my interest baring accounts immediately. Allowing interest to build would be counter productive. The other bills I let stand until the time of the month I usually pay them. It just didn’t make any sense to make additional trips to the payment centers or use additional stamps or plain just waste the time needed to do these things. So I put the money in my savings account where I could get a bit of interest while I waited to pay the bills. Now I have the funds set to cascade from my savings to my checking as my due dates come up.

And then there were 3!

See more progress on: get out of debt