Credit Crunches

On March 24th, I decided to get our finances in order.     So, I made a plan.

First, I decided to hit my credit cards hard!

This is my credit card balances as of March 10th.

PD 35 bealls 628.11
PD 29 syn 479.67
PD 27 credit 1 441.97
PD 50 walmart 330.72

Total: $ 1,880.47     WHAT???      I’m too old to be in this kind of mess!       Why am I still paying off Christmas 2015??        Why didn’t I handle my money better???                  Well, ya didn’t, buut it’s not too late.     Starting now, we’re gonna fix this mess.  And NEVER do it again, right??     Right!!     

When we got paid first of April, I put away $600.    By just putting it in savings, before we began our month.     That way, we would not spend it, if it was already put away.

Then April first, here’s my normal payments.

0 Bealls 607.11
PD 30 synchr 462.54- 30 =432.54
PD 25 credit 1 434.11- 25 =409.11
PD 180 walmart 280.72 -175 = 105.72

Well, you noticed that I didn’t pay anything on Bealls?      I called them and asked for forbearance due to Covid 19.   So, they said I wouldn’t accrue any interest that month, even if I didn’t make a payment.  So, that was nice.     Also, I had just paid 2 months internet, so I didn’t have to make that $75 either.     Then, the electric company said they weren’t gonna cut off anyone’s electric for nonpayment, due to Covid.       Cool!!     I could add up all those things, and pay extra on my lowest balance card!

This is doing the debt snowball plan, from Dave Ramsey’s Financial Peace University.   Increase the payments on your lowest balance card first, until you pay it off.   Then add that additional payment to the next card, and so on, and so on.      (We bought a life time membership 14 years ago, and paid off some cards.     Then we just forgot about it.  🙁   )

As I was excitedly, and proudly, explaining this to DD1, she said, “Wait!!”   

Huh?   What’s the matter?     

She said, “You just saved up $600, right?”   

Yes.   

“In a savings account?”   

Yes.   

“How much does the savings account pay?” 

Uh, IDK.   

“Probably nothing.   And how much are your cards costing you??”     

Uh, well, between 28-30%.   

“Do you see how self-defeating that is??    To accumulate money in a Zero interest account, while bleeding out at 30% on the other accounts??”

Uh, yeah, I can kinda see the sense of what you’re saying.

“So, use that $600, to pay off your lowest card!    That way you are actually saving money, by not paying the 30% on the balance.”

Well, by gum!     For once, math made sense to me!!

So, I promptly took that $600 BACK out of savings, and paid off Walmart, and Credit 1!!     Whoo-ee!!  Felt so good!!      I ran around bragging about it to everybody!!

      Sorry so blurry.

Oh man!!    I rode that high for weeks!!

Then came our stimulus checks!     Yipee!     I see more credit card balances going down!!!

Beall’s, and Toyota cards bit the dust!!        Thank You God, and President Trump!

May budget:

PD 105.88 walmart 105.88- 105.88 =0.0 PAID OFF!!
PD bealls 620.47- 620.47 = 0.00 PAID OFF!!
PD 425.70 credit 1 425.70 – 425.70= 0.0 PAID OFF!!
PD 70 synchrony 432.54- 70=362.54- 362.54= 0.0 PAID OFF!!

If you have ever paid off a credit card, you know the huge relief, and freedom you feel!     Now, neither one of us has any credit card debt!!      And- yes!        I cut those puppies up!!

   I didn’t take a pic of every card, as I cut it up, but this is representative of them all!

Next up on the chopping block: DH’s bank loans!!

 

4 comments

  1. CONGRATULATIONS!! I know the feeling!

    We only use 2 cards now but have been paying them in full for about 3 years now. Walmart card for Walmart only – they give a cash credit bonus if you use it for them! Everything else is on our Southwest Airlines card – those miles allow us to fly and visit Kiddo #1 for a quick single day trip without worrying about the cost. Fly up in the morning, return the same evening. No hotel, gas, etc.

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