July 21, 2008

Paying Down Credit Card Debt

Instead of paying insurance for a year in advance, I've decided to begin paying off a credit card. The reason for this is, the interest rate on the credit card is much more than what we'll be saving on insurance. Right now the credit card I am wanting to pay off is not in use whatsoever. It's a closed account, so there will be no using the card for any reason.

The balance owed on the card is about $1200. I figure if I can knock out at least $100 or that amount in about 2 weeks, that's doing really good. This will all depend on whether or not I have enough work to keep me busy and also whether or not I'll have to make up any extra towards our house payment. I'll be posting updates and noting the amount being set aside for the credit card debt as much as I can. The way I figure it will take me about $12.50 a day extra to meet my goal. That's not bad at all! :D

If I find that the 12.50 can be easily made, I'll increase my goal for the two weeks after that. I am hoping to have that credit card paid off by December! In order to accomplish that, I'll need to make at least a $150 payment every two weeks. That's $18.75 a day. Not too bad, so we'll see what happens! I am very excited about doing this.

Another goal I need to be working on is buying a car so that I can pick up my kids without having to spend nearly $200 every trip. That's getting to be quite a bit! So I am going to see what I can do with the car goal as well.