Total Money Makeover – Month 3 Update

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Is it my 3rd month? I’ve lost track already.

Although I may not know what month we are in, I do know that my debt is slowly decreasing and my credit score is climbing upwards. cue happy dance!!

I have been told that once you pay off all your debt, your credit score might actually plummet! No debt = no credit score. Strange but that’s a long ways away from now.

I also know… that I unfortunately charged my new Apple Sports Watch onto my Best Buy credit card *yikes* but it’s interest free if paid off within the year.

For now.. it’s nice to see my total credit cards under $20k and my car is under $20k!! (Remember, I have my boyfriends car under my name too – but I don’t pay for that debt.)

My Amazon credit card finally cleared at a Zero balance, and makes it the second paid off credit card since starting my journey.

I was debating for a while my next account to tackle – my Costco credit card or my Best Buy Card but I think I’ve figured out the smarter way to go.

My Costco card has a balance of abut $1,100 and my Best Buy card has a total balance of $2083. The obvious choice is Costco, but there are currently 2 interest free-promo charges on my Best Buy card and a charge for the remaining balance and interest from one promo I didn’t pay off completely in time.. lesson learned the hard way.

According to my statement, I have $1,017.16 (zero interest) if paid by July 20, 2018 and $403.50 (zero interest) if paid by May 20, 2018. That leaves an interest accruing balance of $662.75.

If I think of my Best Buy card as 2 separate accounts: that would leave a $662.75 balance to pay off asap – and then a set monthly payment of $170.67 to pay off the promotional balances in time.

YIKES. I didn’t realize how big that monthly payment would actually be… but it’s def the smarter way to go because once that deferred interest hits (insert scared face).