I kind of just snuck in mentioning in my carnival roundup post that I paid off the Citicard last night, but JvW very astutely noticed my reference and called me out on it so I think I ought to come out and say it definitively. I was going to wait until Tuesday’s Tell All post but hopefully by then I’ll have even more payoff news.
Last night in the midst of entering receipts in my budget sheet, I started to get really antsy and irritated. I used to have a system. I’d get money that was designated for extra, or snowflake, debt repayments, I would send it off to the credit card immediately, and the debt total would go down. I’m a fan of instant gratification and it worked well for me. Because I track my earning and spending very closely, I knew what money coming in was for this debt snowflaking and I could use it right away.
But since the car repair saga, I’ve felt like all of our debt reduction was kind of in limbo. First, every available penny went towards the car repair, wiping out a lot of potential future snowflakes short term. This was a decidedly good thing, for it prevented the vast majority of the repair bill from ever becoming debt. But as far as my love of instant gratification, it kind of put a damper on it. Then, the line of credit we got through the dealership to finance the last $800 of the bill is the most archaic thing ever, and if you pay through any electronic means, you get hit with a $10 fee. Seriously, that is just lame. So I need to wait until they send me a paper bill (I have gotten the card etc in the mail already just not the first statement) to pay it off. Waiting. And waiting. And… waiting.
So, I have been collecting my few snowflakes and moving them to my emergency savings fund, and that has been okay. The debt total stays still though. And yesterday, I got my tutoring payment, plus some other money I had been expecting, and I now have enough money to pay off the car repair plus the remaining $155.17 on the credit card. So I wait for the car repair bill. And then I realize…
I can just pay off the credit card now. Yes, something could happen inbetween now and me actually receiving the car repair bill statement and I could not have the $800 any longer to pay it off. The car repair was higher on my priority list and so I wanted to pay it first. But, in reality, I am taking a small calculated risk and since the credit card payoff amount was not much all things considered, I decided to just go for it. And it did indeed make my instant gratification self feel a lot better.
So Citicard – balance $0.00.
After the car repair is balance $0.00 the next target is restoring the emergency fund, but I also need to seriously think about how to approach the student loans that gives me more of a safety net but at the same time gives my debt-destroying inclinations some satisfaction. On to more planning and goal setting and putting my relationship with Citicard behind me, just as I have with Capital One.