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08 March 2002 @ 08:00 am
A new goal  
I just went through some finances, and came to a decision.

It's gonna be a tough one for me to keep, but I'm gonna try very hard to be strict with myself about it.

Next month, when I go through Quicken and look at my credit card accounts, after having pumped just about $700 into the American Express and Discover cards, my bills will be LOWER than they are right now.

I just checked - both the American Express and the Discover had higher balances after the last payment than after the previous one, and by considerable amounts. That's a LOT of money being spent. More specifically, it's a lot of money I don't have.

This will be a challenge....
Nentikobe - a work in progressnentikobe on March 8th, 2002 07:55 am (UTC)
Spending money one doesn't have is a nasty addiction. *twitch*
I've never suffered from it. *jerk*

Too badly. *twitch*

Good luck. I'm trying the same experiment.
Idtechnomonkey on March 8th, 2002 08:02 am (UTC)
Thanks. Good luck to you too.

Really, one of the things I should do is ONLY carry my check card with me. But then I get into the whole "what if I actually NEED it for some reason?" thing....

...there's no winning....
Kurt Onstadspeedball on March 9th, 2002 10:55 pm (UTC)
Payments? Revolving debt vs. fixed debt
When you pay your CC's, are you paying the minimum amount, or are you paying a constant amount, or what are you doing exactly?

If you remember the interview I told you about at the end of movie night, I learned some things during it that would relate to the job I would be doing there if I decide to go into that. The biggest thing that stuck with me, and made me think of you a lot during that interview was the difference between fixed debt and revolving debt, and how much more you end up paying with revolving...

Most credit card companies set you up for revolving debt, where you pay a certain minimum amount, based on percentage of the balance, or a fixed dollar amount, whichever is higher. When you do that, the same percentage of your payment goes towards interest every payment. If you pay a fixed amount each month instead, like a mortgage payment, that's fixed debt. You start out paying mostly interest, and not as much towards the principal, but each payment changes that ratio a little more in your favor. If you have the discipline to pay a certain amount each month on the credit card, and put as little on there as possible, you will get out of debt much sooner.

Idtechnomonkey on March 11th, 2002 09:23 am (UTC)
Re: Payments? Revolving debt vs. fixed debt
The credit card companies want me on a revolving debt. I, however, have budgeted a certain amount each month to pay to the cards, which is about 300-400% what they would have me pay (at least), and just haven't forced myself to stop putting stuff on them. That's the part I need to work on...