My No-Debt Plan (November 2020 Update)

First of all, I apologize for not posting an October update of my No-Debt-Plan, but after reading my previous post, my brother-in-law suggested that I checked into balance transfers. At first I was opposed to this because I didn’t want to open new credit cards, which would negatively affect my credit score. But after considering that I already purchased my townhome, credit score is less concerning that paying interest.

The credit card I used to do this balance transfer is from a credit union, has no transfer or annual fees and it was a seamless transition. The only downside is that I could not transfer the whole amount from my interest-carrying card. The whole process of researching credit card options and applying for the transfer took me a couple of weeks, but it was all worthwhile. Thank you, Bromano!

Something else happened that delayed this post. A friend asked me why I had posted about my debt plan. Good question. For me, it’s about being accountable. If I think I will be doing something, but nobody knows, I can stop anytime with no consequences. No harm done, right? Wrong! Breaking promises is bad, but breaking them to yourself is the worst thing you can do if you are tying to develop good habits and consistency. If on the other hand, my intention is out there on the cloud for all to see, I am now accountable. So, this is my reason for sharing these details.

On with the update…

Discover Credit Card: Balance: $3000. Payment Due Date: 22nd of every month. This card has monthly interest, so it’s the first one I am tackling. My goal is to pay it off by December 22nd. I will do this by paying minimum balances on the other two debts, and send additional amounts to this card. Any additional income that I receive, such as my Ebay sales, goes to paying off this debt.

Home Depot Credit Card: Balance: $3860. No interest grace period ends on 6/25/2021. Payment Due Date: 25th of every month. That is 8 months to pay it off without penalty. Dividing the total by 8 payments (or 7 if I don’t want to risk it), it comes out to $551 per month, or $225.50 every pay period. I set up automatic payments for this amount so I don’t forget.

Credit Union Credit Card: Balance: $3000. No interest period until 10/14/2021. Payment Due Date: 11th of every month. So this would be the last card to pay off. However, I cannot forget minimum payment amounts and date. I set that up automatically as well, so it’s one less thing to worry about.

My current short-time debt stands at $9860, and viewing the amount at less than 10K somehow seems more manageable! It’s funny what happens when you see the finish line a little closer. You find ways of reducing expenditures. I started cooking and using leftovers instead of buying out so often. When I get the urge to purchase something, I use debit instead of credit, and most of the times that stops me on my tracks. It’s almost like playing mind games with yourself.

Plans are not set in stone, they must be re-evaluated and recalibrated ever so often, so they work consistently over time. And since we are the architects of our lives, we can modify them so they fit our intentions. In the case of my financial plan, I am extremely grateful that someone read my previous post and offered advice. I am also proud of myself for reconsidering my original plan and following through with a new idea. That is the importance and value of sharing ongoing experiences. It offer you access to many minds, not just yours, and that is priceless!

Photo by Diane Helentjaris on Unsplash

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