The Other Shoe
The R-card cashed my check today, allowing me to close the account! This puts me on a clear path to interest-free debt reduction through the rest of this year and part of next!
So now I have but 3 credit cards, the D-card with a high debt to limit ratio, the U-card with a .5 ratio and the W-card which I pay off monthly (the cash card). I also have a loan to pay back (but the finance charge on that goes into my retirement account, so I am not in a big rush to pay that off).
Total credit balance today is around 18,000 dollars. This is not good, but it is manageable. I will be able to pay it down to zero by August 2007 or sooner! This is not only a possibility but a necessity, as the 0 interest deals go away some time after that.
I no longer have a great incentive to pay it down too much sooner, other than reducing the high debt to limit ratio on the D-card (which would improve my credit rating).
In fact, if I pay it down too much and end up with some unexpected expense, I will be caught short, requiring me to tap into the credit (which is what I am trying to avoid!). So I will stick to my current payment plan and start accumulating a reserve with anything left over each month.
While I do have a nest egg, thanks to my Mom, I will hang on to that unless it is needed. I could dramatically reduce the debt today, in fact, but I am losing nothing on interest now, so would lose the earning potential of the "egg" if I cashed in now.
So now I have but 3 credit cards, the D-card with a high debt to limit ratio, the U-card with a .5 ratio and the W-card which I pay off monthly (the cash card). I also have a loan to pay back (but the finance charge on that goes into my retirement account, so I am not in a big rush to pay that off).
Total credit balance today is around 18,000 dollars. This is not good, but it is manageable. I will be able to pay it down to zero by August 2007 or sooner! This is not only a possibility but a necessity, as the 0 interest deals go away some time after that.
I no longer have a great incentive to pay it down too much sooner, other than reducing the high debt to limit ratio on the D-card (which would improve my credit rating).
In fact, if I pay it down too much and end up with some unexpected expense, I will be caught short, requiring me to tap into the credit (which is what I am trying to avoid!). So I will stick to my current payment plan and start accumulating a reserve with anything left over each month.
While I do have a nest egg, thanks to my Mom, I will hang on to that unless it is needed. I could dramatically reduce the debt today, in fact, but I am losing nothing on interest now, so would lose the earning potential of the "egg" if I cashed in now.