Thursday, September 20, 2012

One down!

I am very happy to report that as of Tuesday I will have completely paid off one of my longstanding credit cards. I had three credit cards that had large balances, and when I was unemployed four years ago, I got all three onto payment plans. The payment plans were a good thing because they had low fixed interest rates, but they also had high payments because I had to pay them off in five years. My plan for this year was to put all the extra money I could towards the one I could pay off the fastest, in order to get rid of the large monthly payment, and I'll make my last automated payment on Tuesday. (Of course, now I have to call them to cancel the rest.. ) That, combined with our (still trying to) refinancing the house, means I'll have an extra couple HUNDRED each month that I didn't have before. In general, I had planned to spend this year putting all available extra money towards debt payoff, and then next year put all extra money into savings for the wedding, and this will enable me to actually make good headway on both. So while I could have paid off higher-interest items, or used the "snowball" method and paid off the smallest, I think paying off one with a bigger monthly payment will ultimately help my cash flow a lot. And that comes even more in handy since I acquired two additional monthly payments this year in order to pay off my gallbladder removal surgery and my braces. (Ah, the indignities of adulthood.) But I still feel pretty yay about the whole thing, and it's kind of fun to do the math and think about which card I want to attack next.



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1 comment:

John said...

I know your jubilation when it comes to paying off longstanding credit cards. A while back I was having issues with paying my bills do to owing far to many different companies money. I was helped by the wonderful staff of Century Finance to consolidate all of these debts by taking out a personal loan. This greatly helped my credit due to the fact that I no longer had to remember 5+ bills and only had to write one check a month.