Fine tuning

I think my initial proposal was a good one, and it lays some pretty good groundwork for getting my debt paid down smoothly and quickly.  I was thinking about the most economical way of paying down my debt would need a bit more fine tweaking.

My largest concern is the high interest rate on my credit card, I will need to verify the % APR, but my card was one of the thousands that the credit card company sent out a letter saying they were about to raise rates, and I could cancel the card altogether if I didn't agree to the terms.  No one to blame here but myself for the account balance, but I felt a bit dirty when that happened, and now I am paying somewhere in the ballpark of 20%.

Now I don't have a bond calculator to make this into an exact calculation of interest paid, but a $7,500 account balance at that rate is about $125 per month in interest alone.  That's actually more than my car insurance and my cell phone bill together.

What I will do to change my strategy is to pay off my small 401k loan first, which could be done in about 2 months at the rate of savings I am shooting for.  Then I would look to take out a bridge 401k loan (I can have a max of 2 out at a time) to pay off my credit card completely.  This way I would no longer carry a credit card balance in about 2 months time, I would then be set to handle my accounting by funneling all expenses through the credit card asap, and lastly save myself some cash in interest.  However the downside is I would significantly reduce my 401k balance for the time being. While I do not see much upside to the market in the next few months and if it does drop, I can average back in at a lower price in my 401k...but a big missed opportunity if the market does continue to climb.

This move should save me a few hundred dollars in credit card interest, and also convert all the debt into very low interest loans, setting me up for an easier payoff time.