Wednesday, March 9, 2011

A strategy change...

So, I’ve been giving thought to the way that I have been paying my credit card and the way I’ve been spending. On 12/31/10 my credit card balance was at $12,750.00 and now today it is at $12,709.07, even though I’ve made payment totaling $2,219.68 so far this year. It’s frustrating to see that I’ve made that much in payments and the balance is less than $50 off of where it was at the start of the year. I started giving it more thought as to why this would be and it dawned on me that my spending hadn’t changed all that much and I needed to get that under control as well. So, this month I have made a smaller than usual payment toward the credit card and left more money in my checking account to meet the day to day expenses. I will use cash for these, which should make it “hurt” just a little bit more and make me more aware of where the money is going, resulting in my spending less. I’m working on putting myself in more of a frugal mindset and trying to work on spending less and saving more to put toward the debt. The next 2 months are going to be a little bit difficult as I have to make an annual loan payment to my parents at the end of April in the amount of $2,000, but I know I will have it and then I can focus more on getting on with paying down the credit card. Now the credit card has been put away and I am only spending money that I have available in my checking account or cash in my wallet, if it’s not there, I don’t have it to spend…

3 comments:

LBC Teacher said...

Good for you! It's a big step and it can take some adjusting but it's the only way to go!

thefrugalstiletto said...

Last year my credit card was 6000 euro altogether in loans I owed 25000. This year my credit card is gone and I owe 12000 euro all together now. To make changes to your credit card you have to be absolutely frugal. Make your own lunch going to work 4 times a week and always have a treat day. Just make little targets. And give everything to achieve them once you start achieving theses targets do something nice for yourself.It's not going to be easy but well worth it. I've just started my blog and I have been very relaxed lately with my spending but all that is about to change if you need advice check out my blog at www.thefrugalstiletto.blospot.com

Melinda said...

Hey! Just checking in on you, wanted to see how things were going!:)