Thursday, December 27, 2012

Christmas Eve Debt Management Plan

On Christmas Eve, I was sitting on the couch enjoying a cup of coffee and a post swim endorphin glow. Enjoying the last few quiet hours before the family festivities begin.

Not that I don't enjoy the family festivities of course...I just like my quiet time too.

So I was sitting on the couch, reading the newspapers and thinking about 2013.

I'm not a big resolution maker myself - I prefer to make plans rather than resolutions. And I made a plan.

The last few months, I've been working hard to keep credit card debt from rising during the Christmas shopping rush. I forced myself to pay cash for everything and, when I had to order online, I had to transfer the amount I spent from my bank account to my credit card immediately.

I've made it through Christmas unscathed. That doesn't mean that I am debt free. Far from it. Between my car, my loan and my credit card - I'm managing but it feels like a never-ending battle. My car will be paid off in 18 months. My loan in 48 months. My credit card - as soon as possible.

So I've made a plan. Not a resolution but a plan.

1. Set up a by-weekly system to put money into savings. I need to build up a cushion for those unexpected things that set me back on my debt-reduction path.

2. Do not use my credit card unless absolutely necessary (ex. race entry fees) and only if I have the cash on hand to pay it down immediately.

3. Pay down my credit card bill by June 2014 and reduce the limit as I go so it stays low.

Regroup next December. If I have managed to pay down my credit card debt and scrape together some savings - then I decide whether to pay down my loan faster with the extra cash on hand or increase my savings.

One step at a time.

Kinda like running a half-marathon...


  1. Sounds like a good plan! And I definitely agree with you on taking everything one step at a time. Cutting down your debt needs planning and strategy. It needs to be plot out wisely, so you can still enjoy your dimes while paying off whatever debt you have.

  2. The more you stress yourself with how you’re going to pay off all your debts may actually ruin your dedication of doing it. You should take things little by little. Slowly but surely, you’ll soon be rid of all your debts.