- Business As Usual: Pay $2.1k/month across debts as currently allocated. Debt-free by Dec, 2017 after paying $9k in interest
- Slow Snowball: Put $5k against the highest card up front, divert $250/month from savings to debt payments, and do a high-interest snowball on the rest to be debt-free by June 2017 after paying $5.4k interest
- Fast Snowball: Pay off one card, do a 0% balance transfer on the other, divert $250/month from savings to debt payments and do a high-interest snowball on the rest to be debt-free by April 2017 after paying $4.2k in interest.
- Reign in the Spendypants: Do the Fast Snowball but cut $500 from spending and apply that to debt as well to be debt-free by Nov 2016 paying $3.3k interest.
- Do I Smell Smoke?: Do the Fast Snowball but cut $1k from spending and apply that to debt as well to be debt-free by July 2016 paying $2.7k interest.
First, I love the plan names.
Does debt-free include the mortgage? Truly 0 debt?
I would be seriously tempted to not show them option 3--the Fast Snowball. It benefits them only slightly compared to #2, and it's a little dangerous in that it's really not enough. I fear that it makes an "easy" solution (no budget cuts) seem good enough.
These people need to feel the pain and make some solid decisions.
Whew. So now, ladies and gentlement, the post you've all been waiting for, every MMM'ers favorite game, your chance to vent and rant, to experience Schadenfreude ... let's play ...
Punch ... That ... Face!
The rules for this round are simple:
You are seriously cracking me up.
The Mint Categories:
- Home: $1,112.80 ($950 mortgage, some home depot stuff)
- Auto & Transport: $1,062.86 (loans, insurance, fuel, service)
- Shopping: $828.94 (A blend of groceries and household items)
- Bills & Utilities: $693.84 (DirecTV, Verizon iPhones, DSL/landline, gas, electric)
- Food & Dining: $495.77 (all groceries)
- Uncategorized: $302.28 (one ATM and a couple checks)
- Financial: $297.25 (term life insurance premiums)
- Fees & Charges: $213.82 (mostly interest on credit cards)
- Other: $177.98 (from $20 at the dollar store to the $5 spent at Amazon's Kindle store)
- Total: $5185.54
Holy shit. (Sorry!)
If some of the details were not slightly different, I would think these people are my parents. They're "making it" on their retirement income, but very, very close to a major disaster. Waste so much at walmart and on cell phones they forget to ever turn on. Would give up a kidney before cable or their newish cars. Sigh.
Okay, it's very clear they MUST cut the budget, and I think $1000 is too little. Luckily, they have a lot of fat to cut.
I'm hoping they see this and flip out b/c for most of it, they just have to stop wasting money.
Some easy wins:
- Shopping and groceries. Not sure there's anything to really say except STOP.
- The cell phones must be replaced with a cheap plan. Question the landline.
- I know you said not to mention the cars but this is killing them. I hope this makes them see this. It's such an easy win.
- They need to figure out if they really need that life insurance. As I said upthread, they might.
Home and real utilities (G&E) actually seem reasonable. Until the roof caves in, of course.