And its Wednesday folks. So change 12 – Pay a small debt – how are we going? Let’s see…according to Leo:
Day 1 = List debts = tick (well I listed them mentally at least, there were only two to be fair)
Day 2 = Complete the list = well since I thought i had it covered I really didn’t spend any time on it.
Day 3 = Finish looking up and writing down the amounts of the debit (making a guess if you can’t find the amount). Well the first one was easy, concert tickets I owed a friend for, and you know what, money transferred, debt over, done!
Debt 2 = my faithful credit card. Now my limit is reduced so its not a killer but according to my current online statement its $-1341. Maybe not massive for some but its enough for me and really never budges too far from that point. And yes my limit is $1500 so I’m giving myself no room to move.
Day 4 is picking the smallest debt, drawing a circle around that as your first target and paying it first before worrying about the others. Well I only have pay one (could be a badge of honour or irresponsibility that I own no debt bearing assets, yes no houses here folks) so that removes any decision making. The task then is to figure out the minimum you can pay on the other debts and bills, in order to figure out what is the maximum you can pay on this first small debt, and writing that number down for now.
Now I find this part hard, being a bit more ruthless on what is really up for grabs after I take out bill money and savings which go into other accounts automatically (i’m not really that financially angelic, some gets transferred back at the end of a fortnight if I’ve been out a bit much). So I think for day 4 – Thursday, I will take a good hard long look at my spending habits to put a sum on how much is going elsewhere to figure out what extra I could put onto the magical cc.
That will set me up well for Day 5 – take a look at where you can cut back. And Day 6 (it had to happen) – make a payment to the target debt. Works out well this is pay week!
Thrilling stuff right?
Meanwhile come Friday I’ll give an update on how I fare and also report back on Change 1 since I started mid-way through the year.
Buckle up folks…not all changes are interesting but it doesn’t mean they’re not worth a go!