Personal Finance

Reality Check

Penelope (Penny) Winters

I believe the first step, when we are being completely honest with ourselves, is to take a reality check. Where am I exactly? Is it as bad as I think? Is it better – or worse? I won’t know until I crunch some numbers.

Let’s take the plunge:

                                                     Balance               Interest Rate       Minimum Payment

Credit Card A                           $ 8,522.59                     19.99%                        $ 224.00

Credit Card B                           $ 1,435.15                      19.99%                        $   36.00

Credit Card C                           $ 1,968.65                        8.99%                        $   66.50

Overdraft A                              $ 2,519.81                       21.99%                       $   54.75

Overdraft B                              $    481.38                       19.99%                       $   12.51

Loan                                          $ 2,945.00                          0.00%                      $    86.60

TOTALS:                                  $17,872.58                                                          $  480.36

So, that’s the truth of the matter. Needless to say amounts will vary as deposits and purchases are made. On the plus side, I have $51.11 in savings. Now you know the nuts and bolts of my financial situation, as do I.

This income period, which occurs in two days, I will pay off the loan with the exorbitant interest rate. I am always able to meet my minimum payments and often pay more. Credit cards and overdrafts are like lines of credit. I can make a substantial payment, but before you know it I have used my available cash and I am dipping in once more to my overdraft or credit card room to keep me going. Does this sound familiar?

My objective, now that I know exactly where I stand, is to whittle away at this debt. I know how much I can comfortably use each month to draw it down. Next post I’ll explore an excellent tool for figuring out where to go next!

Until next time,

Affectionately,

Penny

 

 

 

 

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Published by Penelope (Penny) Winters

I study people. I empathize with their experiences, and I seek to describe their joys – and tears – in such a way as to help the reader understand the multi-faceted diamond that is life. My coming of age paralleled the birth of the Women’s Liberation Movement in the 1960’s and I am fiercely independent. My walk with God has taken me down some unusual paths. Some may even call me eccentric! I am interested not only in mental health issues; I am fascinated by the whole spectrum of human behaviour. I live in a small hamlet in Wellington County, Ontario, Canada. While I have successfully staved off many male suitors, some of my best friends are men :)

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