I was actually kind of excited to see the new Mastercard bill when it came today. Last month I had made a payment of over half of the balance and was interested to see what the statement would look like. I was a bit surprised to see that the finance charge was much higher than I figured it would be. My principle balance was $1035.63 with a minimum payment of $32.96, but the finance charge was $21.96! That would leave a whopping $11 towards principle! Oh. my. gosh! Can you imagine just paying the minimum each month? I don't even want to calculate how long it would take to pay the card off at that rate. Now, I'm presuming the finance charge will come down on the March statement since my daily average balance will go down, but still..... I'm also presuming the minimum required payment will go down right along with that, again leaving a piddly amount to be applied towards the principle. Thankfully I have been continuing with the original miminum payment of $64 a month, and starting with this statment, I will be snowballing my former van payment, so hopefully this card will be conquered in 4 months or so.
I've considered cutting the card up even now, but it's a Sears Mastercard, and I anticipate having to start replacing appliances next spring, if not sooner, and Sears tends to have some good sales tied to their credit card. The plan is to pay off both credit cards, boost the emergency fund a bit and then replace the refrigerator and hot water tank after having saved up for those; however, I'm not opposed to using the Sears card to get the extra 10% off or free delivery or the promotion of the month, and then paying the balance off right away. I mean, if I save and plan to purchase a refrigerator for $500 and can get another $50 off, then by all means, I'll take it! lol But this card is definitely going to stay in hiding until then. I just can't get over a measly $11 towards principle. I can't wait to Master this Card! ;-)
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2 comments:
I like to put my credit cards in a zip lock bag, then put them in another zip lock bag that I fill with water and then them in the freezer. Then I can't just grab them if I want to buy something frivolous, but if I really need them they are still around and usable.
I find I never use my credit card when it is in this state, and that when it is in my wallet I inevitably find some sort of "emergency" that I need it for.
I'll have to do that. I would think they would be safer in ice in the freezer too, rather than where I keep them. The fellow who lives next door has been in and out of jail, and I'm always concerned that someone will break in, mistaking our house for his. Thanks for the idea!
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