Recently, I wrote about the fact that I owe $6000 in taxes. In that post, I contemplated paying about $4000 from my personal income and $2000 from the sale of stocks from my dividend portfolio. Since making that post, I was able to come up with the full $6000 from my personal funds. So, I no longer needed to sell stocks from my dividend portfolio. In fact, I was able to get my taxes down to about $4500. So, that’s a good thing. But, believe it or not, I chose to pay my taxes with my credit card. Since making that post, Murphy’s Law took effect.
I realize that I had another $5000 bill I had to pay. So, the money that I was going to use for my taxes ended up being used for that other bill. This is such a huge deal that I’ve decided to make a separate post about it. But now that the deed is done, let’s see how I’m going to payoff my credit card debt.
Credit Card Debt – Enemy #1
The fact of the matter is, my credit card debt is now enemy number 1. For all practical purposes, I’ve maxed out my credit card. I’m sure my credit score will take a hit, but that’s not my primary concern at the moment. Paying down my card is my primary concern.
The good news is that my taxes are the last of my major expected expenses. My goal is to put almost every extra funds towards my card. I won’t be able to pay it off this year, but I’m hoping to put a dent into it.
Of course, I also have to ensure that I don’t end up in more credit card debt later. So, I also have to start saving for the slow season. The order of priority will be a) save for the slow season (fixed cost) and b) use any additional income to put towards my credit card debt.
Final Thoughts
The interest rate on my credit card is super high. The balance is also super high, sitting at about $25,000. But, I am committed to paying this down as soon as possible.
As you might be aware, I report on my current debt status every month. Before, I indicated that I had little financial stress in large part because we are entering the busy season of the condos. But now, I’m starting to feel a little stress by how high the credit card debt is. Still, it is what it is.
Let’s just hope Murphy’s Law stay the hell away from me for the rest of the year.
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