Friday, February 26, 2010

I thought I was snowballing.  I discovered.....I am not.  I looked at just my credit card bills.  Looked at the minimum payment, and then what I am paying.  Turns out, that while "most" of my available snowball money is going toward one bill, I am paying extra on all of them!

Here's the breakdown of extra money paid, on just the credit cards:

CC1 - $52
CC2 - $25
CC3 - $8
CC4 - $0 (although I have paid $260 over the minimum this billing cycle)
Store card - $118

OK, so my goal was to pay off the store credit card, and at this point....done!  If I had taken the $85 extra that  I paid on the other CCs, I would have had that paid off 2.5 weeks earlier.

Next am trying to pay off CC4 (because I was mad at myself for even using that card again).  So if I take the $133 I spent paying off the store card and put it toward CC4, it will be paid off in about a month (since $133 plus the minimal $40 due will just about pay off the balance of $181).

I get the snowball concept, but the idea of just paying the minimum scares me!  I feel like I HAVE to pay a little something extra.  But I really can see the power of a true snowball.  The unfortunate thing is that the interest rates coupled with the balances on the remaining CCs will not give me the faster gratification that I sort of want.

I am such a geek....I find this facinating.  I guess taking the time to discover these things really will open my eyes to the possible.  That stuff really can get paid off.  Slow and steady wins the race.

I am hoping that some recent changes (took the landline phone down to basic service, lower electric bill, higher cell phone bill), which will free up about $60 more a month will really help.  Now the question I really give it gazelle intensity and do the snowball in debt order, or do I tackle the CCs???

1 comment:

  1. Hi Mysti! I have confession too. I say I am doing a debt snowball but I just can't bring myself to pay the minimum either! Why is that? This is my 3rd month into the snowball and I "only" put an extra $5 or so over the minimums to the other credit cards (I have 7 - YIKES!). I'm hoping next month I can pull the trigger and really commit...
    Not that I'm happy for your situation but it is nice to see someone else in the same boat! Misery loves company?!?
    You should join the YAKEZIE challenge. It has been a tremendous motivation and resource for me.