It’s time. I’m finally ready to admit to myself and the PF world what my debt looks like. I do share this debt with BF and we share it equally but none the less here it is.

Line of Credit: $15,000
Credit Card #1: $1555.37
CnC’s Parents: $3875
BF’s Parents (AKA car loan): $12,000
Credit Card #2: $0 (woooo hooo)
Total: $32,430.37

Β Wow that is a pretty high number! I’m not shocked by any means however. Currently in our budget this is what each debt is getting per month:

Line of Credit: $450
Credit Card #1: $100
CnC’s Parents: $200
BF’s Parents: $100
Credit Card #2: $0 (repeat itΒ with me, Wooo hooo!!!)

This is the set minimum repayment for each debt every month. I have a bit of side income that varies and will also be distributed to these debts as it comes in. BF is also looking for a new job as he’s been unhappy in his current job for some time now and only stayed because of all of our real estate plans. Whatever job he takes will make more money (or else he won’t leave his job).

I need to also say how great both sets of parents are. They are not worried one teeny tiny bit about the timeline on repaying this cash. The amount owed to my parents would be a decent chunk smaller because essentially we have some tax money set aside that we no longer need (b/c the bank made us pay our taxes when we transfered the mortgage, which coincedentally had to be put on the LOC) but my Dad was adamant that we hold onto that cash “just in case” and boy do I love him for it! At the same time it fuels my fire to erase the parent debt as soon as humanly possible!

My goal for 2011, is a bit on the easy side I think but I need to start small and see accomplishments, I don’t want to set myself up for failure. Anyway, my financial goal for 2011 is to erase both Credit Card #1 and CnC Parents debt, totalling $5430.

This is my question for you. Because the LOC payment is by far the highest each month it means there is a considerable (to me) amount of available credit that willΒ increase each month. So my thought is to essentially consolidate some of the smaller debt into the LOC as the credit becomes available. I would only do this for Credit Card #1 and CnC Parents debt. My thinking behind this is that the sooner these two debts disappear the sooner we have an extra $300/month to throw at other debt. The downside of this is that it means that the LOC will remain at a $15,000 debt until the two smaller ones are gone.

So tell me what you think, consolidate or not?