I'm a little embarrassed ... but maybe all I really needed was a reward for the 3 and a half weeks. Here I had myself worked up into a major existential quandary, and I mean one for the record books. But all I needed? Deep down?
A little cash for my trouble.
It's actually pretty hilarious, come to think about it.
So, anyways ...
I paid off a credit card! All of it. And guess what?
Somehow I managed to maintain a decent payment history! I'd have sworn differently just two days ago. :)
That means drinks are on me!
...
Well ... uh, not really.
I'm thinking maybe I pay for gas with it and then pay off that total at the end of the month? To build some ... I dunno, self-restraint? Decent-ish credit? I guess I don't really don't really know how that stuff works.
Anyways, I've spent the last few days locked in my room with nothing but Excel, a notebook and a couple-three of my favorite free credit reports.
I've been hammering away at a little financial plannery:
I can be debt-free by the end of October.
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2 comments:
Doesn't looking at your credit report make you feel better? I know that it deffinately did for me, and I guarantee my credit is worse than yours!
The best thing you can do for your credit score is to pay it all off! Keep making regular payments and pay off the balance and credit companies will love you ... and hate you at the same time because they aren't making any money off you! But that's for your credit score....
The best thing you can do for you is to learn how to put your money to work for you rather than somebody else. There are two kinds of people in this world:
- Those who pay interest
- Those who collect interest
Which one would you rather be?
You can use your newly paid off credit card to pay for gas to build your credit history, but let me tell you a little secret. Unless you are completely out of debt and have an emergency fund saved up, it rarely works out. Sure, your cards have a grace period and you can avoid paying off the balance each month, but emergencies and lapses in discipline can really do you in.
If you choose to do it anyways, here is my suggestion. Never charge anything that you don't already have cash for! And as soon as you charge it, take that money out of your bank account. Put it in your sock drawer or in a savings account that is in no way tied to your checking account (preferably one that is at a different bank). This way you don't spend your money that you need to pay your bill with.
The best strategy is to figure out about how much you spend in gas each month and put that amount in savings at the start of the month. This way you become disciplined in saving up for what you want before you swipe the card.
If you want to sit down and discuss other strategies and ideas, ask Adam how to get in contact with me and I would be happy to do it.
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