Tuesday, January 2, 2007

Roll up your sleeves, it's time to pay the bills!

Whew! The holiday season is all wrapped up. I survived this year, as well as my family, but my wallet sure took a big hit yet again. Now it's time to focus and get back to work for 2007.

I have a few goals this year like everyone else. First and foremost I have to get those nasty credit card bills paid off. I have made a decision that unless I have the cash to pay for it, I'm not buying. Sure I will lose the air miles, the petro points, the pc points and any other point program I have joined over the years, but my sanity and security is worth it. If you like me, your credit limits have gone through the roof, and have made it so easy for me to whip out the card, and justify the purchase later. Then the bills come in and you start bargaining how your going to pay off the bill.

Don't just make the minimum payment. At that rate it will take you upwards of 42 years to pay off those purchases you just made. My plan? The a similar plan I taught new homeowners when I sold them their homes. I taught them to turn a 25 year mortgage, to just over 15 years.

Bi-weekly payments will ad up quickly, and save interest. I will make sure that 1 payment lands when the payment is due (making sure it is at least the interest due plus the payment), and the second two weeks after. Any extra money payed on the card early will save me money, and help me pay off the cards faster.

I will also try to get the interest rate charged on the cards reduced. Having the interest rate changed on a card that your paying 22% and having it dropped to 10% or in some instances 2.99% can save you hundreds of dollars.

Time to get to work.

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