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March 20th, 2015 at 09:51 am

Today is payday. I love payday. I feel great for about 15 minutes, then I pay my bills ;-) (I'm kidding, being able to pay my bills is a great feeling...just frustrating staring at what's leftover to get me through the next 2 weeks...)

As far as debt reduction, I paid $75 to Cap 1 card, and $262.23 to old debt. Sidebar numbers updated.

No car payment this check, due to refinance. First payment on new loan will be next check. The payoff check to old lender posted, and I need to call them to confirm that my math is right, but I believe I'm getting $477.69 back from them.

I'm considering shifting my strategy for old debt paydown, as well. I may pay off current balances first, since they have insanely high interest rates, then shift to the old debt, which is all in collections at this point anyway, no longer accruing interest. Waiting another few months won't make a difference - the damage to my credit has already been done. But by lowering credit utilization, maybe I can boost my score that way. Need to think on it a bit more, as I'm afraid that I'll see $xx available credit and use it as an excuse to go shopping...I might assign a monthly bill to each card, set it for autopay, and then remove from my wallet. We shall see.

My birthday was great, I had a lovely day at work, got a great bottle of wine from my (old) boss, and went to dinner with my mom. My sister gave me a $50 Amex gift card, and I decided to treat myself to some more wine. (I reeeeally like wine, collection has been getting a bit low lately. I tend to buy it 10-12 bottles at a time, then drink that down for a few months.)

Onward to the weekend....hope everyone has a great one!

8 Responses to “Payday!”

  1. chloe Says:

    I agree that it might be better to focus on the current cards that are still accruing interest before the old debt. If you are worried about using the current cards, why not cut them up so they won't be usable. You can always have the physical cards reissued again later. It'd be worth it to get rid of that 2X% interest rates ASAP!

    Good luck!

  2. creditcardfree Says:

    I would agree that you need to get a handle on your current debt. This also means getting spending under control. You only have money for needs and debt until it is paid off. Very little for wants (the wine is a want) and all the rest to current living expenses (which you should have down to the bare minimum) and current debt. Do not take on any new expenses (loans/credit card debt) until you pay off the ALL the debt (old and new). You are on a new frugal adventure.

  3. scottish girl Says:

    Is the Verve CC new debt? Could you put the money you're getting back towards that?

  4. PauletteGoddard Says:

    Happy birthday! Maybe you can use a quantity of wine as a reward for making debt payoff milestones? Today is International Happiness Day, so do something for yourself that puts a smile on your face.

  5. VS_ozgirl Says:

    I also have high CC debt (along with my husband) and as I've been making payments to both cards and seeing $xxx available I was worried too about spending that because you can see it's available to spend. The trick is to remember a credit card is actually a loan (with a different name and slightly different set of rules). So if you have for example a $5000 credit card debt and pay $1000 towards it, sure you open up Internet banking and see funds available $1000. But look next to that figure and you'll see account balance $4000. You technically don't have $1000 available, you actually owe $4000 to the bank. (That is how I have changed my thinking when it comes to credit cards)

  6. FrugalTexan75 Says:

    Happy birthday!

  7. LizfromtheBronx Says:

    Thanks all!

    creditcardfree - Yes, the wine is definitely a want, but since I bought it with a gift card, I'm calling a loophole. I won't be buying more for a while. Everything is pretty pared down in terms of living expenses...I haven't even gotten a haircut in over a year. That's now shifting a bit more to the need side! Not looking to acquire new debt/loans/cards, but need to worry about credit score since I hope to move at the end of the year. It's a huge factor for a NYC apartment, even in an affordable area.

    scottishgirl - Verve is indeed "new debt" but I need to use that money to pay back a short term loan to my mom. I'm playing with my spreadsheet now, and I think that's the way I'm going to go.

    Paulette - I like the way you think!!! Smile
    VSgirl - that's a great way to look at it.

    Thanks all for the advice. I really appreciate it!

  8. rob62521 Says:

    Happy birthday !

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