Sunday, May 28, 2006

The picture is clearer now

Today is the day of reckoning. I finally decided to sit down and add up the balances on my four major credit cards.

Here goes:

Card 1 $5,192.24
Card 2 $3,325.37
Card 3 $2,595.32
Card 4 $3,300.00

The balances are not a surprise. However, the thought that my credit card debt was under control is now out the window. Writing things down really brings them into perspective. The number in my head was a grand total of $9,000. Without summing up my balances, it is clear that my 'head' number was off by a few grand. At the time $9,000 just seemed like a manageable number. I have no clue why!

What is my plan of action?
Card 4 has to be paid off by September because it is a 0% rate that ends in September. After I tackle card 4 then I will tackle card 3. The debt reduction plan is paying down the smallest balance first. This will give me a morale boost.


ASAP Credit Card said...

Sounds like you've got the right plan of attack! Get rid of that 0% credit card before the intro period ends.

But after that, I would go after the card with the highest APR (not the lowest balance). Even though paying off the lowest balance will make you feel better, it would be smarter to get rid of the higher interest debt so you can prevent yourself from paying more.

SincerelyGo said...

A few years ago I buckled down and paid off $10,000 worth of credit card debt. I felt great. I'm a huge fan of Dave Ramsey. Now I've gotten myself into another financial bind but I hope to get out quickly...ugh.

(yes I was serious about reading everyone of your blog post)