I have so much to be thankful for this year. Out of all the things I’m thankful for, I’m thankful for my wife, our home, and both sides of our family. Looking back on how this year started, I didn’t know I’d be at this place. Thank God for my loving family and my close friend Joe. This month I applied more toward the Capital One card, and next month I decided to take a rest from aggressive debt reduction. I may or may not take a break next year. This year I want to be able to have money to use towards Christmas and have a little extra money in my checking account to remind me of the time before I was in debt. It’s important to be able to rest, reflect, and appreciate how far you’ve come.
Last month one of my Barclay’s credit cards was bought by Mercury, and so my balance was transferred to a Mercury Credit Card. I had to create a new username and password and re-adjust the information in my budget. With that transfer, and my excellent payment history, my credit limit was increased. A credit card company will increase your limit in order to tempt you to start using the card. A credit card company must send you a notice if any type of information is being changed. When information is changing, I look for two things: an annual fee, and my new interest rate. Even with my credit limit increase, I’m continuing to pay this balance, and not adding anymore new debt. One of the mistakes I made while reducing my debt again was looking for balance transfer offers, and loans to consolidate credit card debt. I think you should use a balance transfer or consolidation loan only if you have the self-discipline to not add balances back on the cards you pay to zero. Even if that means you must cut up the cards, store them away, or give them to someone you trust, stay focused on becoming debt free. I made the mistake of doing a balance transfer and not committing to bringing the balance to zero before the promotional rate ended. I had consolidation loans but would also re-use the cards. Having a consolidation loan and using the cards again reduced my cash flow (cash I had to live on after expenses are paid) and increased my debt to income (a ratio that for creditors can play a factor in granting increases in credit or new credit). Only use a balance transfer option if you have ability to pay the balance off before the promotional rate ends, and if you can commit to your debt reduction strategy.
This year is different. Often people will say it’ll be different this time, and then end up doing the opposite. Why is this year different? For me it’s because of small consistent steps, and emotional support that’s really helping me succeed. For me it’s about faith, a mission and a vision. Your journey to a debt free me is different than mine, but if I’m getting closer to being there, then take one more step with me. You can do it.
If you want to learn more about how I’m increasing my income while reducing debt, or if you want to have someone to discuss your debt reduction strategy with, or if you need a financial check-up, contact me.
Also, learn more about how I use the self-lending principle through Mustard Seed in the mustard seed section.
This month’s video is The BEST ADVICE you’ll Ever Hear! Will Smith from the Video Advice YouTube channel.
“The LORD will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them.”
Deuteronomy 28:12 NLT
I believe in your journey to….
A Debt Free Me