Thursday, October 4, 2007

Attacking credit card #2: balance vs. interest rate

It's October 4th and all my bills are paid! I'll get paid again on October 12th, and most, if not all, of that paycheck will be going towards debt. I paid off my first credit card based on the lowest balance, because I thought I needed the motivation, but now that I'm moving forward, I think I need to be smart and pay off the one with the highest interest rate. The next smallest balance is $800, which I could easily pay off next pay day. But I also have a card with a balance of $1300 and the highest interest rate, a full 7% more than the $800 card! So I think I'm going to pay off that (hopefully by the 26th pay day) and then I should be able to get rid of the $800 card in November. I didn't think I'd have them both paid off until December, so I'll be a month ahead! I'm not expecting to have a crazy Christmas, but it will be comforting to know I have some funds if I need them, without extending my debt reduction plan!

The second job is covering most of my variable expenses. I'm working 14 hours for them this week ($140) plus babysitting Saturday ($60). My bank balance makes me so happy!

I'm trying to find ways to limit my spending. I think I might only take as much as I need for the day and leave all other money and debit card at home. Or maybe keep an emergency credit card in a sealed envelope. I can't be trusted. Not yet, at least!

1 comment:

krystalatwork said...

That's awesome!!! I can't believe you've paid all your bills 4 days into the month! :) Your debt is going to be gone in no time if you keep going at this rate. Keep it up!