Credit Card Debt Update – No More Revolving Balances
Posted on: June 3, 2009 by Matt
Early last month I was pretty excited to report that I had paid off my credit card balance to Capital One. So I thought I would give everyone a quick update on where I am at this month: the card is still paid off.
The plan that my girlfriend proposed involved paying off the credit card balance and working to curb spending to keep the balance low. The result for me was a pretty empty checking account and we figured that we would use the card for expenses but would keep a closer eye on spending. So far it has worked out. Since my initial pay off of the large balance I have seen two statements.
The second statement was about half of the first for amount due so it appears that we have been gradually easing up on credit card use and easing back onto the checking account and debit card. I did have a couple of decent months at work which lead to higher commissions so the balances were paid in full and so far I have not made any transactions on my new statement period (which began in the middle of last month).
All said and done – the little plan my girlfriend put forward has worked pretty well. The process looks like this:
- Pay off the entire balance – do not worry about the low checking account balance.
- Use the card and stick to your budget for essentials.
- Keep tabs on spending, use the card sparingly.
- Pay the card off in full again – this time with a lower balance leaving more in the bank.
- Repeat
In addition – the plan plays to my emotional well being as well as I generally do not like having to pay with my credit card. The emotional reaction is enough that I will often forgo additional comfort items for myself (do I really need to go out for a coffee?) and stick with the basics.
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TagsBudget, Credit Cards, Debt, Debt Reduction, Relationships Filed Under: Credit Cards, Debt, Debt Reduction, Relationships
Good for you man, that is impressive! And pretty hard for most people so congrats
You also have a smart girlfriend.
I was dying on that sentence where you said, “girlfriend proposed involved paying off the credit card balance and working to curb ” because I FIRST read it as, “girlfriend proposed involved paying off the credit card balance and working ON THE curb”! I thought she wanted you to work the streets for a bit! haha…good times, good times.
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J – I am dying now too.. Proof that maybe I should proof read and make sure my grammar is not all jacked up before I post.
Thanks for the laugh!