Recently, I mentioned that in my Year of Focus, I would be going after my credit card debt to secure my financial freedom. I’m happy to introduce the first installment of DieDebtDie!
This isn’t my first brush with consumer debt. I paid off a $3000 credit limit a few years ago but after going into business for myself and traveling full-time, I incurred some—okay, a lot of—debt. While I wasn’t able to pay down a lot in January, I will give myself credit for being as vigorous as I have. Part of my methods for paying down the balance is that whenever I want fast food, I pay down what it would cost to buy fast food and then of course I buy fast food with my debit card because… I have to eat. By doing this I know I’ll also regulate my eating habits. It’s just much cheaper and smarter and healthier to buy groceries instead of being lazy. Seriously, the grocery store is across the street from McDonald’s.
When I started this financial project, I was actually over my credit limit. I know it’s bad
but. Now I actually have a couple hundred dollars-worth of credit. I obtained a new credit card specifically and only to transfer my MasterCard balance. It has a 0% transfer rate and 0% APR for 15 months, which will give me plenty of time to pay off my MasterCard. I will be shredding my Capital One card and when I’ve paid off the balance of new card, I may keep it for emergencies or occasions when I need to reserve something that requires a credit card.
I’ve recalculated my Mint goal of paying off my MasterCard and if I can pay down $500 a month, I should have that card paid off by the end of the year. This month I fell short because business was sucky. I suspect with taxes due that I’ll be short another month as well. I’m going to be working to secure a full-time job soon so I can speed up the process.
I have a steady social life now in Seattle, which means money. I may share with my new friends what my goal is in hopes that they don’t NOT invite me to things. We’ll see.
Capital One MasterCard: $5,815.95 (14.90% APR)
Chase Southwest Airlines Visa: $8,302.67 (15.24% APR)
Credit card debt total: $14,118.62
As of February 1, 2014
Capital One MasterCard: $5,700.00 (14.90% APR)
Chase Southwest Airlines Visa: $7,900.00 (15.24% APR)
Credit card debt total: 13,700.00