The beatles Case Study

[The beatles]

  I also don’t get this whole ‘renter’ house and find a realtor who knows investors / rental market? What is that all about?  It’s a house. People live in it.  Why label it as something that seems to have negative connotations - as if it has less value.  You could ask the tenants if they are interested in buying it and not go through a realtor at all and save the fees.

I think that you might be talking about me here.  I said that, originally, because I wasn't imagining a single family, detached home as the rental.  I was imagining a small building deliberately built as an investment property, such as a duplex or quad.

Yeah it's a single family, normal house.

We lived in it prior to upgrading.

Well, sort of.

We actually moved out of the rental home into a $300k beautiful home. I'd describe how awesome it was but it'll just piss you all off, so I won't go there.

After a few years we couldn't afford the mortgage anymore and moved to our current house.

[marty998]

It's Friday.  How was lunch at work today?  This would have been "buy the office lunch" day - how is that going?  I ask because sometimes the hardest steps are not the big huge scary ones, they are the ones that impact other people outside the family.  We are a social animal and we are built to care what others think of us.  That is why this is such a good place for you to be, we will be your responsible spending social group.

Plus of course I am wondering if anyone else has started buying lunch for the group.  I bet no-one has.

This marks the first week in, I'm not sure how long, that I only purchased 1 day of lunch.

I'm guesstimating that I saved around $145.

Jesus Christ that is $7,500 per year. Giddy up!

Fucking fantastic.

[Poundwise]

This marks the first week in, I'm not sure how long, that I only purchased 1 day of lunch.

I'm guesstimating that I saved around $145.

Great job!!  Do you have enough money in the bank to send that amount to your CC card with the highest rate, right away? When is payday?

[RetiredAt63]

This marks the first week in, I'm not sure how long, that I only purchased 1 day of lunch.

I'm guesstimating that I saved around $145.

Great job!!  Do you have enough money in the bank to send that amount to your CC card with the highest rate, right away? When is payday?

Good idea.  Instant reward.  Every week that you don't buy the office lunch, send that money to a CC.  You see the direct result of the change, and don't get tempted to spend it on something else.

[Quidnon?]

We actually moved out of the rental home into a $300k beautiful home. I'd describe how awesome it was but it'll just piss you all off, so I won't go there.

After a few years we couldn't afford the mortgage anymore and moved to our current house.

You're house poor.

[MDM]

I added a lot more details, and dug down to get the exact amounts as requested.

Looking good.

Some points:
- You should be taking depreciation on the rental.  If you sell it, you'll have to do Depreciation recapture whether you take it now or not.
- Consider using the Free Debt Reduction Calculator for Excel (scroll down past the annoying DOCtoPDF download button and use the download "for Excel, OpenOffice, and Google Sheets".  Pick a payoff order that makes sense to you and do it.
- See Investment Order.  At this point you probably shouldn't go past step #2:
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.   
Even the HSA might save you "only" 15% while getting the high interest CCs paid off will save 25%.       

Thank you.
I just downloaded the calculator.

Just curious - what payoff order have you picked?

[The beatles]

I added a lot more details, and dug down to get the exact amounts as requested.

Looking good.

Some points:
- You should be taking depreciation on the rental.  If you sell it, you'll have to do Depreciation recapture whether you take it now or not.
- Consider using the Free Debt Reduction Calculator for Excel (scroll down past the annoying DOCtoPDF download button and use the download "for Excel, OpenOffice, and Google Sheets".  Pick a payoff order that makes sense to you and do it.
- See Investment Order.  At this point you probably shouldn't go past step #2:
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.   
Even the HSA might save you "only" 15% while getting the high interest CCs paid off will save 25%.       

Thank you.
I just downloaded the calculator.

Just curious - what payoff order have you picked?

I decided to do lowest amount first.

I know there's a lot of people who say to do highest interest first.

So I almost did an eeny meeny miny mo type of deal.

[The beatles]

Mrs. Beatles shopping today.

[The beatles]

We actually moved out of the rental home into a $300k beautiful home. I'd describe how awesome it was but it'll just piss you all off, so I won't go there.

After a few years we couldn't afford the mortgage anymore and moved to our current house.

You're house poor.

Sorry, I may have not been clear.

We no longer live in the 300k house.

[Quidnon?]

We actually moved out of the rental home into a $300k beautiful home. I'd describe how awesome it was but it'll just piss you all off, so I won't go there.

After a few years we couldn't afford the mortgage anymore and moved to our current house.

You're house poor.

Sorry, I may have not been clear.

We no longer live in the 300k house.

It's still affecting you.

[MDM]

I added a lot more details, and dug down to get the exact amounts as requested.

Looking good.

Some points:
- You should be taking depreciation on the rental.  If you sell it, you'll have to do Depreciation recapture whether you take it now or not.
- Consider using the Free Debt Reduction Calculator for Excel (scroll down past the annoying DOCtoPDF download button and use the download "for Excel, OpenOffice, and Google Sheets".  Pick a payoff order that makes sense to you and do it.
- See Investment Order.  At this point you probably shouldn't go past step #2:
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.   
Even the HSA might save you "only" 15% while getting the high interest CCs paid off will save 25%.       

Thank you.
I just downloaded the calculator.

Just curious - what payoff order have you picked?

I decided to do lowest amount first.

I know there's a lot of people who say to do highest interest first.

So I almost did an eeny meeny miny mo type of deal.

That's fine.  You should do whatever works best for you. 

Paying toward the highest interest loans first will in fact cost you the least amount of money - as the Excel calculator should have shown - provided you do keep current on all the loans.

But there is also a psychological benefit to reducing the number of outstanding loans that makes it more likely you will keep current on all of them.

People can tell you what seems best to them.  Only you can say what is best for you.

[Poundwise]

Mrs. Beatles shopping today.

I hate to criticize the poor thing; she's been doing so well. I would have skipped the Dixie cups and the calendar, at the least. Use reusable cups.  Also, it's easy to pick up free calendars, and at worst you can print them out. 

[The beatles]

I added a lot more details, and dug down to get the exact amounts as requested.

Looking good.

Some points:
- You should be taking depreciation on the rental.  If you sell it, you'll have to do Depreciation recapture whether you take it now or not.
- Consider using the Free Debt Reduction Calculator for Excel (scroll down past the annoying DOCtoPDF download button and use the download "for Excel, OpenOffice, and Google Sheets".  Pick a payoff order that makes sense to you and do it.
- See Investment Order.  At this point you probably shouldn't go past step #2:
0. Establish an emergency fund to your satisfaction           
1. Contribute to your 401k up to any company match           
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.   
Even the HSA might save you "only" 15% while getting the high interest CCs paid off will save 25%.       

Thank you.
I just downloaded the calculator.

Just curious - what payoff order have you picked?

I decided to do lowest amount first.

I know there's a lot of people who say to do highest interest first.

So I almost did an eeny meeny miny mo type of deal.

That's fine.  You should do whatever works best for you. 

Paying toward the highest interest loans first will in fact cost you the least amount of money - as the Excel calculator should have shown - provided you do keep current on all the loans.

But there is also a psychological benefit to reducing the number of outstanding loans that makes it more likely you will keep current on all of them.

People can tell you what seems best to them.  Only you can say what is best for you.

Thank you!

[Allie]

She's doing great, but can she return the calendar, mascara, cups, and whatever plates are?  You sent back a TV, target can take back cups!  I get home, go "what was I thinking, I don't need or really even want any of this." Then take it back next trip.  Stores, target in particular, are so good at getting us to put things in our carts, it's almost criminal.

[katscratch]

In spite of the impulse/want-and-not-need purchases, I gotta say, that's some good Cartwheel and coupon stacking on the Mrs' part :)  And no junk food! 

[The beatles]

She's doing great, but can she return the calendar, mascara, cups, and whatever plates are?  You sent back a TV, target can take back cups!  I get home, go "what was I thinking, I don't need or really even want any of this." Then take it back next trip.  Stores, target in particular, are so good at getting us to put things in our carts, it's almost criminal.

I think some of her spending is a coping mechanism or something.

She told me that sometimes she'll go online and fill up her cart on Amazon or something, but then not complete the purchase.

She said shopping makes her feel happy.

[Quidnon?]

She said shopping makes her feel happy.

She needs a new hobby.

[swick]

She said shopping makes her feel happy.

She needs a new hobby.

Mrs. Beatles is doing great and she needs some support.

Just the conscious realization that shopping makes her happy is a GIGANTIC LEAP FORWARD. There is a whole cascade of chemical and psychological effects going on.  You can't change what you don't acknowledge.

Beatles, You know that post I keep linking to? and the worksheet? Ask Mrs. Beatles to pull out the items and sit with those questions for a while. Answer them for each item and see what comes up for her.

She does need to find other things that make her happy. Not only that she has to identify what is making her feel unhappy. I'm willing to bet a huge amount of it has to do with the stress you are under due to your finances.

I'm guessing you have gotten loads of PM"s offering support for both you and Mrs. Beatles. Take us up on it. A good chunk of money issues really isn't about the money.

[Meowmalade]

She told me that sometimes she'll go online and fill up her cart on Amazon or something, but then not complete the purchase.

She said shopping makes her feel happy.

Hi Beatles, you guys are doing great!  It sounds like Mrs. Beatles likes the act of browsing and shopping, and it's great that she can restrain herself from hitting that last purchase button.  One game that really helps me is that every item that I consider buying and then don't, I congratulate myself for "saving" that amount.  It's not real saving but it's money saved compared to what I might have spent!

[Allie]

I think many of us have all been conditioned and brain washed into thinking that shopping makes us happy.  Target and advertisers spend millions each year to figure out how to give us a desire to enter the store and buy products.  The three TVs are glowing with advertisements, the grocery store is set up to make you hungry for crap, packages are designed to guilt and shame you into buying the most expensive version, everything consumer we see all day long is one big mind fuck designed to make us want to fill the empty spaces we have with things.

I'm not a very good mustachian, I enjoy the role of providing for the family by procuring everything we need.  I don't work for money any longer, so it gives me a purpose and something tangible I can point to and say, "This is how I add value."  You can't do that with many of the other things I do like being active with the kids. 

But, the longer I'm on here, the easier it is to see how I'm being manipulated.  I fill a cart with stuff at Amazon or zappos and then for the next three weeks I have ads for sofas (my recent browsing) on every web page I see.  My kids want toys that go with all the shows we let them watch...and some dude sat around with a focus group to figure out exactly which TV shows will generate this desire and put them on the air.  It's never ending. 

That said, when she does break the cycle, she will either find that she is just as happy without the things (which is likely, it's probably been a while since she hasn't shopped for recreation, maybe she will feel just as happy looking at the debts go down?) or that there is something she really wants to change that doesn't involve stuff.  Go check out your money or your life from the library.  It puts a lot of this into a really nice perspective.  Between the taxes, interest you guys owe on the credit cards, and length of time it will take you to pay your debts, I'm guessing that it will take you a few hours of work to pay for all that stuff that you end up just throwing away...calendar, cups, mascara...all disposable.  That really helped me put it into perspective.  Not just how long my husband had worked to buy the stuff, but how much longer he would have to work because the money wasn't invested and growing. 

[Trifle]

Agree with the other posters that it is a HUGE STEP for you and your wife to say out loud that you realize you spend from a psychological need.  Good job.

It will take some time before the two of you can turn off the advertisers' evil influence and re-program yourselves.  But you're on your way.

One thing we did years ago that helped us control impulse/crap spending -- Anything that cost more than $50, DH and I literally sat down and talked about it -- did the cost/benefit analysis out loud.  And then if we still wanted it -- unless it was a true emergency -- we waited a month before buying.  When we first started doing this, at least 90% of the time we realized during that cooling-off period we didn't need whatever it was, and we never bought it.  I also do the same thing with small purchases.  Unless it's an emergency need, I wait at least a week before buying it.   Could you try something like that?  A mandatory wait period before buying?  You may find that the desire disappears.  And if you slip up and make a crap purchase -- as you know -- you return it.:)

Another iron-clad way to help yourselves:  stay out of stores.  There are certain stores that are weaknesses for me.  I know exactly which ones they are, and I just stay away. I'm guessing that Target may be a danger store for your wife.  Something to think about.

Lastly -- I don't recall anyone on this thread mentioning The Life-Changing Magic of Tidying Up, by Marie Kondo.  Very interesting book.  It's not just about de-cluttering. The author has a really cool point of view about things, and their place in our lives.  I think you might enjoy it.   

Great, great job both of you!

*PS-- of course turning off the TV also helps block the evil noise we receive from advertisers
     

[marion10]

Interesting- when we were first married (of course that was 34 years ago) our limit was 20. We've probably moved closer to 50- but it is very rare for us to spend more than 20 or so without consulting the other.

[Trifle]

Great minds think alike, Marion!  :) 

I think that having to say out loud "I'm thinking of buying ____" is a psychological game-changer.  And having that spouse there to say "Honey, remember we're in debt and trying to pay off the credit card?" or whatever.  Super valuable.  Even today when we have a big positive net worth, DH and I still do it.

[LadyStache in Baja]

Thanks for the updates Beatles!

[Poundwise]

Trifele is right: stay away from spending triggers. Also, bring a list when shopping and stick to the list.

In some ways, your wife's job is the hardest.  She's spending the day with the kids, and instead of a few big decisions that have to be made at once (buy everybody's lunch for them or stop, buy a big TV or not), she has to make a hundred small decisions in a day and change her lifestyle in a hundred small ways.

It's not easy. As a SAHM, you can't increase income. When you are anxious because of debt, it's hard to force yourself to DO NOTHING (i.e. not shop). You feel powerless. You want to go out, take some action, see something improve in your life, consume. It's hard to feel like you're working so hard to catch up or stay in one place. 

The way I get around that feeling is to make, or to cook, or to fix broken things. It took a while to realize that I had a lot of power after all.  And I have found that being a producer gives even greater satisfaction than being a consumer.

[Malum Prohibitum]

I think some of her spending is a coping mechanism or something.

She told me that sometimes she'll go online and fill up her cart on Amazon or something, but then not complete the purchase.

She said shopping makes her feel happy.

That's a normal feeling.
http://www.mrmoneymustache.com/2014/04/14/how-to-make-money-buy-happiness/

The best way to get to the root of all this spending is to realize what we are all really trying to buy. In fact, it is the reason for every single action we take in our lives. It’s happiness.

[RetiredAt63]

Did Mrs. Beatles like her job before the kids came along?   Does she get to talk with adults much these days?  As a teacher I got to be a SAHM during the summer, and I know that I would have gone stir-crazy if I had been a SAHM full-time.  On-line shopping and taking the kids out on a bunch of activities may be her way of dealing with the stress and isolation being a SAHM involves.  Maybe once the older is in school she could go back to work part time?  Even if you just break even financially, it gets her back in the job market, gives her a chance to brush up on her skills and basically gives her the chance to feel like an adult. Of course once she gets into being the family CEO/CFO she may feel more engaged in that role and not need an outside job - it is only January, oldest won't start school until September, so lots of time to work out what is best for her.

[marion10]

My "cure" for shopping is the public library. I can bring home all these physical objects and it didn't cost me anything.

[RetiredAt63]

My "cure" for shopping is the public library. I can bring home all these physical objects and it didn't cost me anything.

The library is definitely my cure for book shopping.  If I find myself borrowing the same book for the third time I might actually buy it.  Mrs. Beatles may also find lots of DVDs she likes at their library.  Some communities also have toy libraries - sure beats buying a new toy whenever the kids get tired of the ones they are playing with.

If either beatle gets handy, there are also tool libraries in some communities.

[swick]

You might be familiar with it already, but if your wife hasn't read "Why We Buy -  The science of Shopping" by Paco Underhill, I think it should be required reading in HS.

[Jakejake]

I was going to recommend sitting down together for 20 minutes and watching The Story of Stuff.
http://storyofstuff.org/movies/story-of-stuff/

You don't need to aim for the 100% goal advocated for at the end of the video, but I think in the middle of it you might find some things that resonate with you and your wife.

[BlueHouse]

I think some of her spending is a coping mechanism or something.

This is really quite common.  Oftentimes it's just something to do because you're lonely.  It's very hard to uncover the fact that it's loneliness when you're busy running around all day, caring for toddlers, meeting with other people, etc.  But if the core loneliness is not addressed, then the "hole" will be filled with something else:  "stuff", shopping, food, drink, drugs. 

Let your wife read this on her own time and see if sometimes she goes shopping because she just doesn't feel like going home?

[Trifle]

My "cure" for shopping is the public library. I can bring home all these physical objects and it didn't cost me anything.

The library is definitely my cure for book shopping.  If I find myself borrowing the same book for the third time I might actually buy it.  Mrs. Beatles may also find lots of DVDs she likes at their library.  Some communities also have toy libraries - sure beats buying a new toy whenever the kids get tired of the ones they are playing with.

If either beatle gets handy, there are also tool libraries in some communities.

These are great suggestions.

Another cure for the buying itch that works for me -- Clean and organize what you have.  It (A) is a great use of time, (B) keeps you busy, and (C) makes you appreciate how much stuff you already have

[Jakejake]

If the issue is feeling isolated, maybe she could invite friends over for a "try a new recipe" cooking party. I had a friend invite me over for that once, we cooked a big Ethiopian meal she'd been wanting to try, We each contributed some ingredients, drank some coffee and hung out while cooking, and we each ended up with some new cooking knowledge and enough food for a few meals.

[The beatles]

Latest blog article: Essay about startups and frugality

Also started a journal: Here it is

[marty998]

From your blog:

Alright, what’s your startup idea Mr. Beatles?
I’m not sure I’m ready to divulge that yet.

The beta test version of the website will be available for user testing very soon. Probably in 3 weeks, or less. The first challenge may prove to be one of the most difficult. I will have to find a user base willing to give me honest and direct feedback. Traditional digital advertising, such as posting a request on Craigslist and Facebook, would likely not yield adequate results. I can imagine many people would view the website out of curiosity, but not take the time to give me their detailed opinion and user experience. Surveys are notoriously ignored.

Err, hello?

[The beatles]

From your blog:

Alright, what’s your startup idea Mr. Beatles?
I’m not sure I’m ready to divulge that yet.

The beta test version of the website will be available for user testing very soon. Probably in 3 weeks, or less. The first challenge may prove to be one of the most difficult. I will have to find a user base willing to give me honest and direct feedback. Traditional digital advertising, such as posting a request on Craigslist and Facebook, would likely not yield adequate results. I can imagine many people would view the website out of curiosity, but not take the time to give me their detailed opinion and user experience. Surveys are notoriously ignored.

Err, hello?

Haha good point.

[The beatles]

After paying some bills, we should have around $1250 by Friday.

Would you set up the 1,000 emergency fund like Dave Ramsey says?

Or start paying down credit cards?

[1967mama]

My vote is for the $1000 starter emergency fund a la Dave Ramsey.

Next week, you'll already be on to baby step 2!

You guys are doing great and it's so exciting to watch you pull yourselves up by the bootstraps!

Well done!

[Sapphire]

From your blog:

Alright, what’s your startup idea Mr. Beatles?
I’m not sure I’m ready to divulge that yet.

The beta test version of the website will be available for user testing very soon. Probably in 3 weeks, or less. The first challenge may prove to be one of the most difficult. I will have to find a user base willing to give me honest and direct feedback. Traditional digital advertising, such as posting a request on Craigslist and Facebook, would likely not yield adequate results. I can imagine many people would view the website out of curiosity, but not take the time to give me their detailed opinion and user experience. Surveys are notoriously ignored.

Err, hello?

Haha good point.

Coming out of lurking to laugh...;)

Mr B, you are doing a great job.  Hang in there, one day at a time.

From the point of view of someone who was a SAHM a long time ago (without internet shopping fortunately!) I did find that shopping just broke up the (sometimes) relentlessness of being at home with little kids and there was the short term buzz of a new purchase.  I also did lots of activities outside of home with the kids because it gave me an outlet to be with other adults. 

Things turned around for me when I found some other mums and we started to do play dates at our own homes.  Much less stress for me and the kids and my desire to shop did recede.

Kudos to Mrs B for making small steps.  She is on the right track.

[marty998]

I would reward yourself by knocking out a credit card. Suggest CC #6 + accrued interest to clear that entirely. Remainder can go towards building that EF.

Then call the bank to confirm closing the account.

[RetiredAt63]

I would reward yourself by knocking out a credit card. Suggest CC #6 + accrued interest to clear that entirely. Remainder can go towards building that EF.

Then call the bank to confirm closing the account.

Sounds good.  Who needs 6 credit cards?*  Except he may want to be pickier about which accounts get closed - don't long-standing accounts help your credit rating more than just-opened ones?  OF course closing some is definitely a good idea, less available credit.

*That was a rhetorical questions, cc churners - beatles is not at churner stage right now.

[RetiredAt63]

Latest blog article: Essay about startups and frugality

Also started a journal: Here it is

Journal =/= blog.  What you posted both places is "blog-y".  As in, you cut and pasted your blog to your journal.

Journal - needs a purpose, most of us use it to define our goals, ponder our progress, figure out what makes us tick.  The first 2 you are doing here, so your journal might be put to better use by reflecting on your life (pre and post marriage), defining influences on you and mrs. b, how you got where you are (psychologically) and how you are addressing those issues.  Actually, you are doing a little bit of that here too.

You don't really need a journal, you have this thread and the blog, and it is just  one more thing for you to tend (be distracted by). 

[begood]

Latest blog article: Essay about startups and frugality

Also started a journal: Here it is

Journal =/= blog.  What you posted both places is "blog-y".  As in, you cut and pasted your blog to your journal.

Journal - needs a purpose, most of us use it to define our goals, ponder our progress, figure out what makes us tick.  The first 2 you are doing here, so your journal might be put to better use by reflecting on your life (pre and post marriage), defining influences on you and mrs. b, how you got where you are (psychologically) and how you are addressing those issues.  Actually, you are doing a little bit of that here too.

You don't really need a journal, you have this thread and the blog, and it is just  one more thing for you to tend (be distracted by).

Or (from a different perspective), think about what you're trying to accomplish with a blog (or a journal!). The blog entries are one-sided: you impart information; others read it. A journal in the MMM format is designed to be much more interactive. So you impart information and others respond, and the vine grows. Because journals are set to members-only, many people feel free to be more personal, because they know random unregistered internet people won't happen across it. The whole point of a blog is to attract random unregistered internet people to drive clicks.

You're obviously a pretty savvy guy, so think about the goal of any of your writing: to speak to or to talk with?

[The beatles]

Latest blog article: Essay about startups and frugality

Also started a journal: Here it is

Journal =/= blog.  What you posted both places is "blog-y".  As in, you cut and pasted your blog to your journal.

Journal - needs a purpose, most of us use it to define our goals, ponder our progress, figure out what makes us tick.  The first 2 you are doing here, so your journal might be put to better use by reflecting on your life (pre and post marriage), defining influences on you and mrs. b, how you got where you are (psychologically) and how you are addressing those issues.  Actually, you are doing a little bit of that here too.

You don't really need a journal, you have this thread and the blog, and it is just  one more thing for you to tend (be distracted by).

I agree.

Only reason I did that is because a few people told me to. Not sure why.

[The beatles]

I would reward yourself by knocking out a credit card. Suggest CC #6 + accrued interest to clear that entirely. Remainder can go towards building that EF.

Then call the bank to confirm closing the account.

Sounds good.  Who needs 6 credit cards?*  Except he may want to be pickier about which accounts get closed - don't long-standing accounts help your credit rating more than just-opened ones?  OF course closing some is definitely a good idea, less available credit.

*That was a rhetorical questions, cc churners - beatles is not at churner stage right now.

Yeah...

I'm not to keen on trashing my credit.

[The beatles]

I'm now questioning whether to just start attacking CC2.

The high balance and high interest rate is rough.

[Jakejake]

I am clearly not following the logic of some of the ideas being tossed around in this last page.
If you still have a basic credit card that you can charge to ... you don't need an emergency fund of cash. The credit card is your emergency fund. If you have a medical crisis you'd pay for it with your card.

If you hold $1000 in cash, you are basically charging yourself 25% interest on it (since that's what you are paying on your existing debt).

Also I don't understand the logic of using your $1250 to pay off anything except the card(s) with the highest interest rate. I'd pay off CC1, highest rate - and you'd be able to knock it off the list. Then snowball that payment into CC7 next month to pay it off in Feb or March.

[Zoot]

I'm now questioning whether to just start attacking CC2.

The high balance and high interest rate is rough.

Here's the list of your credit cards from your first post in this thread:

CC1   194   856   25.24%
CC2   134   4495   24.49
CC3   25   505   23.24%
CC4   25   452   10.23%
CC5   20   692   18.49%
CC6   75   797   24.15
CC7    100   2020   25.24

In effect, you really have two groups of cards:  higher interest and lower interest.

HIGHER INTEREST (CC1, CC2, CC3, CC6, CC7)
Total debt = $8673
Total minimum payment = $528

LOWER INTEREST (CC4, CC5)
Total debt = $1144
Total minimum payment = $45

In addition to the minimum payments you are already making, you will have $600 from not buying work lunches. 

With these details, I'd do the following:
* STOP USING THE CARDS--you are on a cash-only diet right now, with all expenses being paid in cash or with a debit card (no, I don't care about points or miles--your goal is to get out of debt and establish good credit habits before learning credit ninja tactics like that)
* focus on the low-balance cards in the Higher Interest group

In this way, you get BOTH the psychological benefit of paying off an account in full, and the math benefit of paying down high interest debt first. (The small difference in the "higher interest" group cards isn't worth bothering with, especially when you'll be paying off the entire account in just a couple of months.)

Here's what I would do this month:
* Pay the minimum payment that you are already paying on your highest-interest card CC1 ($194) plus another $662 (get the extra $62 from grocery savings!)
      --this will completely wipe out $856 of high interest debt and give you a $0 balance on that card
* Pay the minimum payments on your other cards, as usual

In February, you will have an extra $194 that you are no longer paying to CC1.  Use this $194 and the $600 you freed up ($794) as follows:
* Pay the minimum payment that you are already paying on CC6 ($75), plus the $194 you were paying on CC1, plus an additional $528 to wipe out CC6
* Pay the minimum on your other cards, as usual

In March, you will have the $194 from CC1 plus the $75 from CC6 plus the $600 from not buying lunch ($869).  Do this:
* Use about $500 to pay off CC3
* Send the rest to CC7
* Pay the minimum on your other cards, as usual

In April, you will have $194 + $75 + $25 + $600 ($894).  Do this:
* Pay the $100 minimum on CC7, plus the $894
* This will get you awfully darn close to knocking out CC7--see if you can scrounge some money from somewhere else (grocery savings, selling stuff) to knock this one out this month

So by the end of April--in just four payment cycles--you can completely wipe out four of your seven cards.  :)

In May, your balances on CC4 and CC5 will be low enough that you can wipe them out with your $194 + $75 + $25 + $600 + $100 (from CC7, which you paid off in April).  Go ahead and knock both of these out, and send anything left to CC2.

Then in June, you can pay $194 + $75 + $25 + $600 + $100 + $25 + $20 = $1019, plus your usual minimum payment of $134 (total of $1153) to CC2.  Do it again in July.  Do it again in August.  Do it again in September.  Then in October, pay whatever's left.

Then you are DONE.

In just nine months, you can kill ALL OF THIS DEBT.  Now go do it!  :)



(edited for math, and to add that I am ignoring accrued interest and to an extent ignoring the effect of the minimum payments on the balances, just to make my post easier to tabulate)  :)

[MDM]

I'm now questioning whether to just start attacking CC2.

The high balance and high interest rate is rough.

One could make the case that establishing a $1000 e-fund this month (e.g., at one of the best online savings accounts costs only $1000 * 0.25 / 12 = $21 and might be psychologically worthwhile.

One could also make the case that a 25% interest rate is emergency enough to use the $1000 against the CC debt.

Pick one or the other....