journeytominimalism

Tossing the clutter to have a more meaningful life!

Great start to April – small victories count!

on April 7, 2013

Throughout this initial piece of the journey, one of my goals has been to eliminate certain credit cards. While I have never been one to have many credit cards, I have held 2 different ones the past 4-5 years now. One is the visa credit card I have with my current bank and the other is a MasterCard.

At one point, after leaving the ex and moving out on my own, I ended up maxing out my visa credit card with my bank just to make ends meet. As I started paying that down, I realized that if I had an emergency expense, I had no way to cover it. That initiated the application for the MasterCard. The past 1-2 years, I have done a really good job immediately paying off anything that I charge to either card, and I have been planning to close out the MasterCard. However, I always had that fear of closing it out due to the fact that the Visa has a low max rate on it in addition to a pretty hefty rate in general. Not to say that the rate on the MasterCard is any better…

Could I request a higher limit on the Visa? Absolutely! However, the interest is atrocious and I haven’t been too happy with my bank for a while….therefore, I’ve been keeping my options open.

A few weeks ago, I moved some of my savings into another bank, to see how I liked it. So far, I’m really impressed. By using this bank, I can ditch my excel spreadsheet I have been using to track all of my expenses – this bank has a program that does all of that for me (HUGE TIMESAVER)! This bank also has a really good credit card with cash rewards, and low interest rate – much better than either of the 2 credit cards I have had.

So, I am going to begin the process of moving all savings and checking to the new bank of choice, closing out my current bank account once all pending payments have been processed.

Now…to get to the point – otherwise, it sounds like I just have 3 credit cards and 2 different banks right now. NOT THE CASE!
I just closed out the MasterCard, SHREDDING the card and doing a happy dance!

Next step – pay off the $10.79 balance on the old Visa credit card and close that out as well, limiting myself to 1 credit card for emergencies only.

I know I know….my fellow minimalist buddies out there will gasp in horror at my joy over having a credit card at all. For now, since I own a house and a car, it’s a safety net for me in case any unforeseen emergencies come up that I can’t handle alone from my savings.

The overall plan is to have no credit cards, but for now, this is a small victory for me. And hey…if I’m not racking up scores of charges on the card and I am paying it off quickly, what’s the harm? I’m still contributing to that great credit score that I have, which by the way is better than 79% of consumers in the good ol’ USA. 🙂

Thanks for hanging in there with me through this journey and for all of the support and encouraging words. I am still making progress paying down the college loan, car loan, and de-cluttering. Next week – a new update!

I hope you all have a great week!

-Julia

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13 responses to “Great start to April – small victories count!

  1. needforless says:

    Congrats! The “decluttering” of debt in your life is one of the most relieving experiences in the journey! I’m so happy and proud of your progress!

  2. justlynne says:

    Liking your blog,

    But as one budding minimalist to another, “Credit is not a bad thing”. Closing out your accounts is not a good idea. If you had the cards for a year or more closing them will give your credit score a ding, well more like a wrecking ball hitting a wall of feathers. Keep one card just in case. Also keep another open and have a recurring debt charged to it every month. I use my cell phone payment. On another card I charge my electric bill. After the charge I pay them off ASAP, this way I have no balance carry over and No interest. The idea is to be able to have credit extended to me if really need it, Like to fix heating and air system, septic, plumbing issues.

    Keep up the good work.

    • Thanks – I did not know that about canceling a credit card – helpful info! I have the same thoughts on having the credit there if needed for unexpected issues.
      I just followed your blog – excited to see another person finding their way through the minimalist way of life! Looking forward to reading your posts!

  3. justlynne says:

    Your welcome, I just pass along what I have learned over the years… I am following you also, Like yourself I am super excited about this. Look forward to reading your future post!

  4. Linda Sand says:

    I keep two credit cards. One pays cash back on purchases so I use it for nearly everything, including fuel, paying it off each month and taking my bonus dollars. The other one I use only for major purchases/repairs that I may not be able to pay off in one month. That lets me not add those charges to my rotating balance on the other card to keep the smaller charges from generating interest due.

  5. Caitlin says:

    Oh hey girl! Found you because you commented on my blog!! I have a post about debt publishing this Friday (student loans, yippee) but I just want to say that I too found myself awash in credit card debt after leaving a relationship — it sucks but it felt SO GOOD to pay it off!! I have a bank credit card and my Discover card. The balance is always 0 but I occasionally put something on in a pinch or just once every few months to keep some activity going on. I bought some concert tickets last month on the Discover… but they will be paid off in full as soon as I get the statement 🙂

    I am looking forward to getting to know you and your blog!

    • Thanks so much for stopping by! It’s really motivating to see others out there blogging about their minimalist beginnings / adventures. The debt thing is an ugly monster and I’m bound and determined to take it down!

  6. Hey! I nominated your blog for the Liebster Award! You can see what you have to do here: http://foxywholefoodie.wordpress.com/2013/04/10/blog-networking-the-liebster-award/. You don’t have to do anything with it if you don’t want to 🙂 (it seems to be a little chain-letter’ish) but hey, it’s kind of fun to be nominated! And it seems to be a good way to network with other bloggers 🙂

  7. all the small victories add up to the big goal, so well done! Iv almost paid off my first credit card debt on my debt smashing journey – and it will be the first victory in my war on debt 🙂

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