Last payday I accidently sent a payment to a wrong account – all because I didn’t delete the company from my list of bills. I’ve learnt my lesson from that and today I got to delete another bill. This is important, as I usually pay bills while drinking my first cup of coffee, not after!
Today I made a different mistake – and again I’ll blame the coffee. I paid a bill twice. Fortunately it was a credit card, but it temporarily deprived me of downsizing another debt – one of the last ones!
I solved the problem by using the credit card to purchase a gift card at Co-op, which I have used for buying my bus tickets and will use for groceries on Monday.
What I failed to do was plan my “bill paying” which I usually do before pay-day. If I had looked back, I would have realized that I did cover the transaction I used the card for. Then I would have paid the right bill.
What I learned: There’s always a way to solve the problem. My first mistake cost me $10 to fix. This mistake actually gives me some rewards points.
However, as the year comes to a close, I am pleased with my results. Back in April I paid off my oldest debt. Take one bill off the list. Paying off this debt was counter-intuitive – it had the lowest interest rate and the lowest balance. But PSYCHOLOGICALLY it was the most burdensome. I’m glad it’s gone. In August I paid off my riskiest debt – one of those “No interest for 2 years” kind of deals. Now I’ve paid off my other credit card and I’m working soley on the Line of Credit.
The nice thing about being at this phase in the process is that the bites are getting bigger – about $200 per pay check. I’m hoping to be finished this process by the end of the year – and paying off my cruise as well.
I’ll continue to keep you posted, mostly on Fridays, but I can tell you this – Debt Snowballing, in whatever order you chose to do it, is very exciting!
So, don’t give up. Keep working at it. There will be a light at the end of the tunnel, even if you don’t see it just yet!
I will probably write some kind of reflective post – it’s kind of the thing to do, but in case I spend more time quietly reflecting than I plan, I do want to wish you all a wonderful New Year, full of grace, blessing and growth. God has been very, very good and I am grateful.