I sent off the paperwork this morning to increase Credit Card 4’s limit to $16,300. Good grief that’s a large number!
Well it’s only going to be large for a finite period of time, as I’m going to reduce the limit as I pay it off.
The deal I've made with myself is that I’ll transfer the remaining balance of Credit Card 3 onto it, which reduces the number of cards I have to pay each month, but I’ll be paying both the amounts I was currently paying all onto Credit Card 4 each month instead.
Credit Card 3 was my current focus card, and the one I’d worked out I could pay off by December 31 (to achieve another of my Financial Year Resolutions). To ensure that goal is still achieved, I need to get the total balance on Credit Card 4 to at least $10,000 by December 31. This allows for the amount I was already paying off Credit Card 4, plus the total balance of Credit Card 3.
Clear as mud? To break it down, as at 1 August, the balances of Cards 3 and 4 were:
- Credit Card 3: -$5,466
- Credit Card 4: -$11,197
Once the limit increase is approved & the balance transfer is complete the most the new picture will be:
- Credit Card 3: $0
- Credit Card 4: -$16,663 (it won’t be this much though, as this month's payments on both cards will be applied first)
Then it’s a matter of paying off like crazy between now and December 31. I can’t claim credit Card 3 as paid in full until that goal is reached.