So Fridays we are now going to be discussing all things finance.
First off, lets look at the state of play.
So I am once again under the $20,000 mark.
I’m not going to be overtly smug about that again, because the last time I hipped-hopped hurrayed about the fact I had finally come under the magic $20,000 mark, what did I do? Blow it clear back into the $21,000 mark before the next pay-day, that’s what I did. So it will be a low-key celebration, just me doing this:
But this is the business side of the year for me. During the next 6 months I am not foreseeing any huge expenses, with the exception of maybe a few days in February, a friends advanced 21st birthday in May, and another birthday in June. And I am considering blowing off maybe 2 out 3. So really by the middle of this year (and here I go making predictions again) I should be well under the $15k mark (my budget says around the $11k mark, but I don’t really want to draw the wrath of the debt gods by claiming I’m going to hit that).
I was going to include a line graph showing my debt status from the 15th of April 2010 (yep, you read that right I have been trying to break out of debt for more than a year and a half now… well longer, but I lost the data for the previous years) and while there is a downward trend, the incline could be compared to the incline ski instructors put people on when they have never ever skied in their life before, and have a propensity to fall over a lot, coupled with the skill to mutilate any innocent passers-by with their ski equipment (the bunny slope). I’m hoping in the next few months will see a very steep incline, but the plans of mice and men and all that. Once I get that incline happening then maybe you’ll get to see it, cause frankly right now it’s kind of embarrassing.
One other thing to note is that I am using almost 79% (78.87%) of my total credit limit of my combined credit cards. I hear the gasps of horror from you guys all the way over here in Australia. I know, I know, this blows my credit score completely out of the water, but it’s a helluva lot better than the beginning of last year when I was owing around 92% of my available credit limit *shudder*. Thinking about it however, that 92% doesn’t actually doesn’t tell the real story about the debt I had at that time, because at the beginning of last year I had a fifth (yes I can hear the “wtf?!?!” and the spray of coffee on to the screen as you splutter at my stupidity) maxed out credit card AND a personal loan (both of which have now been payed for and closed) which I can’t be bothered to input into my cut-and-paste formula. So I’m thinking it would have been more around the 96% mark. *even bigger shudder*
Depending on what you read out on the interweb, the advise is to maintain your outstanding credit balance versus your available credit limit percentage to about 50% – 30%. One website advocates you keep it down to around 10%. I think the rationale for keeping an outstanding balance on your credit is that it shows an active credit history, to any other financial institutions that may want to take a gander at your credit score. Personally I’d like it at 0% :P, but beggars can’t be choosers, so I would be over the moon if I can get that below the 30% before the middle of the year.
9 more months till debt-free-ness…