Credit Card Payoff Explained

I know that most people can’t pay off their credit cards like DH and I can. That’s because before we ring up a charge on one of those cards, we make sure we have the cash in the bank to back up the purchase ‘just in case’. Just in case something foul happens and we can’t pay down the debt, we have the cash reserves to pay it off in full.

So, that’s what we are currently doing. It’s a combination of withdrawing out of our savings account combined with weekly income but we are on a two month repayment plan of paying off $11,357.61 in consumer credit card debt (of which is at zero percent). This amount came to be with the purchase of new furniture for our Florida condo and home remodeling/redecorating costs on our New York property.

Why are we paying off our credit card debt now, while its still at zero percent, you might ask? That’s because we’re clearing off all our credit card debt to make way for an RV loan, which will be at 2.99%. An RV is considered a 2nd home, so the interest on the loan is tax deductible. Also, the rate of inflation is supposed to be 2% right now (and rising). So, why should we use our own money which is earning more than 2.99% to buy the RV outright?

Yesterday, I paid off two credit cards at $1,374.89 and $1,033.68. At the end of this month I will be paying off two more credit cards of $1,722.33 and $1,506.81. That’ll be it for the month of June. Next month, by the end of July, I’ll be paying off the biggest debt of them all, $5,719.90. After that, probably sometime either in August or September, DH and I will be buying our almost tiny house RV. It’s only 17ft, is low cost ($14K) and will work for us for what we want to do. It’ll probably take us a day or two to outfit our newish RV. Once that’s done, we’re setting our compass west and finally heading to The Grand Canyon. We’ll probably roam about the country for a good solid month. Once that’s done, we’ll head back down to our condo in Florida and probably spend a few good winter days in Key West.

Life doesn’t get any better than that, IMHO.

Live well and prosper, my friend. Live well and prosper.

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6 thoughts on “Credit Card Payoff Explained

  1. I’ll bet it feels good to be paying off those cards–even tho they’re zero interest. Once they’re paid off, you can forget about them. I love that feeling of satisfaction when you tie up loose ends. There’s nothing like a clean financial slate!! Keep us posted on the RV shopping.

    Liked by 1 person

    • Hi Pam. OMG…..each one I pay off is like a big sigh of relief. Can’t wait till it’s ALL gone! Hopefully, never again. It was just an unusual spending spree for sure.
      Good to hear from you again.

      Like

  2. Good for you getting these pesky things paid off! Even if ours were zero interest, I’d still want them gone ASAP and cannot wait under they are out of our lives for good.

    Excited to hear about your RV!

    Liked by 1 person

    • You do know I raise chickens, right? How else could I afford the eggs. I was thinking of using ‘foul’ but it just looked like ‘fool’ too too much. At least I know you’re paying attention. LOL! Thank you. I’m changing it now.

      Like

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