Oh. My. God.
A big surprise was waiting for me when I was doing my fortnightly budget today.
I always do my credit card payments every pay cycle, and then at the beginning of every month (such as today) I update my outstanding balances (because of interest and any “emergency” purchases made on the credit cards).
Lo and behold! In my delirious state I had actually used a different credit card (one with a higher balance) than the American Express card. While this did mean I went over my credit card limit on that particular card by $31.08, which means I’ll probably get whacked with a $75 dollar over limit fee, or something ridiculous like that, it ALSO means that I was able to pay off the American Express card in FULL!
Excuse me for a moment while I thrust my crotch into the air to celebrate this glorious victory.
That is right muchacho’s amd muchacha’s! I am down to 3 credit cards! Three! While yes, these three have all the highest balances, I haven’t been down to 3 credit cards since the middle of the last decade.
I am so excited, that if I had six nipples, they would all be tingling.
So, the budget looks like this after taking into account the payments I’ve made today.
While I love being at this point in my financial goals, frankly I never really thought it was going to happen. And so I’m at a loss as to what to do next, so once again I am asking from advice from my fellow bloggers.
Of the remaining credit cards remaining which one do I pay off first?
ANZ credit card has the lowest balance but also the lowest interest rate. So while paying this off might give me a quicker “red row”, mathematically it doesn’t make sense.
Ignite credit card has the highest balance, and the second highest interest rate. This means that although the Mastercard has a higher interest rate, the higher limit (and therefore higher amount owing) I have on this card means that this is currently where I’m paying the most interest.
Gold Mastercard credit card has the second highest balance, and the highest interest rate. So using the avalanche method means that I really should pay this off first, but I’m not so sure. It makes more sense to me to pay off the one where I’m paying the most interest.
So, what do I do fellow bloggers? Any and all suggestions welcome!