You may remember my previous plan to pay off all my credit card debt.
Well, it didn't happen that way because my income tax refund was not as big as I crossed my fingers and hoped (again, as I said in my "dream deferred" post, it's GOOD that my refund wasn't so big. It means I'm learning and handling my money a little smarter -- but just a little!).
Another part of that plan was using just about all of my mini emergency fund to add to the refund and cancel the debt completely. I wasn't hesitant to do that -- I wanted the debt relief. I wanted to be debt free.
Well, now, I still want that, but I'm not sure emptying out my mini emergency fund all at once is brilliant.
If I continue to pay down my credit card debt with the same monthly amount, I will be paid off by September. That's not good enough for me.
Instead, here's what I plan to do:
1. In April, add $1,000 from my mini emergency fund to my regular payment (leaving $800 in the fund).
New debt total: $1,004.23
2. In May, take an additional $400 from the fund and add it to my regular payment.
New debt total: $0.00!!!!!! Zip! Zilch! Nada!
3. In June, put what I had been adding to my credit card back into the mini-emergency fund.
New mini emergency savings total: $1,000.
That's it. In two months, I'll be credit card debt free.