What’s up good folks of the internet, I’m your host Jonny B, and this is my 6 month plan to pay off my credit card.
My use of credit cards has been a thorn in my side for the past 10 years. A lot of “smart” bloggers and authors always recommend using credit cards for monthly expenses to get the 1% cash back or free flights or what have you. Does it work for them? Yes. Does it work for me? Not at all.
I pay it off and get debt free, then eventually it grows uglier and uglier. And then I pay it off again and the cycle continues.
Well let me tell you, it is a very annoying cycle and I’m done with it.
Now that I’ve moved to Japan, my expenses are much lower because I don’t need a car. I have cured my clown-like car habit. I no longer pay for car maintenance, gas, insurance, or license plate renewal. I’m taking the money that would normally flow to that, and redirecting that river of money to paying down my credit card. I set an automatic payment of $500 to my credit card every two weeks. So with a balance of $6,261 and an interest rate of 14.65%, let’s run a realistic schedule of me paying this bitch off.
Keep in mind, I no longer use my credit card for any regular purchases. But I think my Amazon and Apple are still linked to it, so I check my bank app once or twice a week and overpay on any new charges. For example, if its a charge of $4.99 and two charges of $9.99, I’ll throw $40 at it, to make sure it doesn’t accumulate.
| Months | Starting total | Payments | Interest charged | Actual Payment to Principle | Ending Total |
| 1 | $6,261 | $1000 | $76.43 | $923.57 | $5,337.43 |
| 2 | $5,337.43 | $1000 | $65.16 | $934.84 | $4,402.59 |
| 3 | $4,402.59 | $1000 | $53.74 | $946.26 | $3,456.33 |
| 4 | $3,456.33 | $1000 | $42.19 | $957.81 | $2,498.52 |
| 5 | $2,498.52 | $1000 | $30.50 | $969.50 | $1,529.02 |
| 6 | $1,529.02 | $1000 | $18.66 | $981.34 | $547.68 |
| 7 | $547.68 | $554.36 | $6.68 | $547.68 | Zero!!! |
So, that’s my 6 month plan to pay off my credit card. If I can stick to that plan, which is already automated and well within my budget, I should have this bitch paid off in just over 6 months.
Are you going through the same adventure as me right now? I imagine you are, if you’re reading a website called Late Twenties and Broke.
Until next time, I’m Jonny B and this is Late Twenties and Broke.
Keep your stick on the ice,
-Jonny B