Set It and Forget It: Extra Modest 15-Week Payment Plan

In an effort to boost my savings rate more rapidly, I’ve set-up a payment plan that will pay down the $1500 credit card convenience check I wrote to myself earlier this week.

Yeah, the check that I used to accelerate the PMI cancellation process by a few weeks.

In the past, with a $1545 balance ($1500 + $45 transaction fee) hanging over my head, I would have attacked it like crazy until it was gone. I’m thinking… two payments.

Problem being, using that method, I’d continue to be broke well into September. Maybe even October.

I’ve felt tapped out for a few months now already and I really need to get a comfortable buffer so that I’m not right up against the wall for a few weeks each month — you know, when your checking account balance is less than 4 figures…

It’s funny, that used to be the norm. Now it just makes me nervous.

So I set up an automatic payment plan through Bank of America to pay Chase $103 every Friday for the next 15 weeks.

I realize that the balance is at 0% until May of 2009, so to make the most of my money, I should just pay the minimum until April, but I’d really prefer to be 100% debt free by the end of the year instead of leaving a small balance just kind of swaying in the breeze for months and months.

This way, by November 21st, the credit card balance will be back to zero. The PMI should be long canceled. And the car should be paid off.

Total cost to me? That $45 transaction fee. I can handle that.

I’ll then have the whole month of December to “practice” saving instead of making debt payments before we slide into 2009…