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.

Can you feel that debt? Can you? CAN YOU?!?!

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.

Another red row! Red is good! We love red!

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!


18 responses to “Hello, OMG OMG OMG OMG OMG OMG OMG OMG OMG!

  1. Congrats on paying it off!

  2. I love how this is like, “I’m going to get hit by a $75 fee but I AM SO EXCITED”

    haha great post and good job getting rid of a credit card!

  3. Thats great! & I love the video πŸ™‚
    go for which ever method makes you more motivated

    • I’ve gone for the highest interest, but spreading out the debt payments across 2 cards for 6 weeks, that should lessen the amount of interest im paying on the highest balance card, at the same time as starting to chip away the balance on the highest interest πŸ™‚

  4. Congratulations. Big accomplishment. 1 down. 3 to go. WOOT!

    Now it’s on to the next one.

    I can’t do one of those mathematical breakdowns and tell you which one would save you more money by paying it off first but if I had to go on gut and feelings, my advice is pay off the smallest balance first which is the ANZ. My point of view is, the faster you can do another crotch thrust. The better and more motivated you will feel.

    Anyways, all paths are good so long as that debt goes down, And get an EF.

    • I soooo nearly touched my EF just to buy a few things, but I managed to restraint myself. The EF is now around the $500 mark, which is a good start. I would love it to be around the $12,000 mark (thats 3 months worth of take home pay)… thats okay, I was sorta day dreaming as to what the hell I was going to do once I pay off my debt. Well saving $12,000 is the next goal! πŸ™‚

  5. That’s REALLY worth a dance. Congratulations! May you have 3 more of those dances before long. πŸ™‚

    • I know! Die credit card die! I work with a lot of women in my office (out of the 30 or so people in my department only 5 are male and straight) and I always do my fortnightly budget at work, so when I started doing a Kevin Bacon ala Footloose impression in front of my computer. I got more than a few weird looks. But I get those all the time… so all good πŸ™‚

  6. lol!! Jim Carrey is one of a kind… πŸ˜‰

    Congrats to you!

  7. I hope you were able to avoid the $75 fee. Sometimes if you turn around quickly and pay off the overage, you wont get charged. Or you can always call them and beg for forgiveness. Also, CONGRATS! That’s totally awesome that you’re down to 3, even if it was a bit by mistake. Last, pay the smaller one first. With the money you were putting towards that now-dead CC, pay it as extra on the ANZ card, and that one should be gone pretty soon. Then carry the snowball onto the next cards.

    • See I know that makes sense (the payment method you described) but I just can’t feel at ease knowing that interest is going to murder me on the other two cards. It would take me at least 3-4 months to pay off the lowest balance card, which would be another $600 – $800 worth of interest. Argh.

  8. I agree with Rafiki. You see like an instant gratification kind of guy. Give yourself another quick pat on the back. it feels good.

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