Crazy or genious, I am not sure which.
October 3, 2006 11:23 AM Subscribe
Like most Americans, my wife and I are struggling with debts. I thought of a great way to eliminate them, but my wife does not agree. What do you think?
posted by Monkey0nCrack to Work & Money (42 answers total) 2 users marked this as a favorite
Well, my method is very unconventional, and takes A LOT of willpower on our part.
We have about six or seven credit cards, which are all maxed out.
What I plan to do is to of course, write down everything we owe, when it is due and keep basic track of things. From this, we can glean some kind of budget.
Using the budget, my plan is to take all of the budgeted amounts and place it towards our credit card debt.
Then, using the card(s) that have newly available balances, we buy the things that were budgeted for. If we come under budget on those categories of spending, then the difference represents a debt that no longer is there.
Gradually we would pay the cards off in this manner, and then cancel them, only keeping cards that have low interest, and using them only in emergency, and paying the balance off each month and that sort of logical family financal model.
Yes, I realize it is a bit dangerous, but we would be no worse off - all our cards are already maxed.
Just as a bit of history, my wife has been in-charge of the bookkeeping for a long time, and now it's my turn. She kept everything in her head, and I keep it in Quicken.