Here's what we're thinking about doing to get ourselves out of debt:
- April, May and June we will save $1K/month for our emergency fund. Since we have no credit available to us at this time, we need to have enough to purchase a replacement vehicle as well as for any other emergency that may come up.
- July we make a settlement to our smallest credit card (balance is currently $1545, but about 400 of that is fees we have received).
- August, September & October we save up to make a settlement on our next smallest credit card ($3629).
- Next 18 months after that repeat the same pattern. Afterwards settle small 0% medical bills outstanding.
Having some inspiration today, I realized that before we got married, I had my future wife file for bankruptcy in order for us to "start fresh" but that if we had kept her bills and learned the lessons 3 years ago that we're learning now, we'd be in a much better place financially than we are now. As I told her though today, we can have no regrets and can only change our actions in the future.
Today's lesson: Don't file bankruptcy, God can use your debts to help you grow into a wise person. If you do file, you might just be in the same situation a few years down the line.