I have a lot of debt and very little income. I don't stress out about it more than necessary. I am not in good health right now and I won't go killing myself to scrape together a few more dollars. I accept that my debt is going to be with me for a while so I don't get into a panic when the monthly bills arrive. Mostly, I have been able to pay the minimum payments on the credit card bills and pay the utilities in full every month. Of course, I do this by dipping into my line of credit. That thing is a life saver.
Yesterday I got a letter from one of my credit card companies saying that because I have managed my account so responsibly, they are offering me a credit increase. I saw right through their dirty little scheme. It has not gone unnoticed that theirs is the only one of my credit cards where my balance grows each month even though I don't use it any more. I only have one card that I use now, and I am trying to pay that one off in full at the end of each month. On the other cards, the minimum payment covers interest plus a little bit more, so every month the balance inches down and I pay a little less interest on what is left.
On this particular card, the one that is offering to increase my credit limit to $20, 000 (and no, before you even ask, I am not accepting their offer!), the minimum payment is actually less than the interest I have to pay, so the balance inches up each month. Every month I have to take a good look at my bill and make sure I pay enough to cover the interest and I add a little bit more whenever I can. This is the card that I really want to pay off. Unfortunately, it is also the one with the biggest balance, over $10, 000.
Like I said, I am not spending too much time agonizing about my debt. Debt is inevitable in my preset situation. However, since I recently submitted my income tax declaration, I was looking forward to getting a sizable tax refund from the federal government. I am sorely disappointed to see that the amount in its entirety has been transfered to the provincial level to repay an amount that I owe. I am not saying it isn't fair. It is. I know they have every right to do this. Still, I was hoping they would at least let me keep a portion of it. It would have come in very handy to put on my growing credit card bill.
Well, it's a good thing I didn't count my chickens before they hatched. Luckily I had the foresight to put some of the money I earned last month away instead of paying it all into my bills. So I do have enough to make the minimum payments this month, but sadly I won't be making that one big payment to get that one annoying credit card company off my back. Such is life, I guess.
On the up side, with the amount I owed to the province of Quebec reduced, (it was money I owed on an overpayment of the Solidarity Tax Credit), I should hopefully start receiving regular payments of the Solidarity Tax Credit to which I am entitled. Hopefully. I am not sure how long it will take the different levels of government to communicate between themselves and finally let me have the money that I need. I hope it won't be too long.
In the meantime, I will make my phantom payments to my line of credit and then use the credit to pay the credit card bills. (By phantom payments I mean that when I get money, I put it into my line of credit so that the account registers the payment, then I withdraw the money immediately and make payments to other accounts with it. The line of credit balance doesn't actually go down, but at least it registers that I am "managing the account responsibly" (lol) by always making some payments. Which I withdraw immediately after. So it's like canceling the payment, but whatever. Juggling air. I am juggling air. Magic!
The trouble with juggling air is that eventually the Line of Credit Balloon is going to pop. I will reach the maximum limit on that account and I will no longer be able to juggle money through it. So really this strategy is only a temporary fix. I try not to think about it too, too much, for fear that a lump of panic will form in my throat. I do liken the situation to The Little Dutch Boy. I don't want to drown in debt, but I don't know how long I can hold back the water.
On the up side, with the amount I owed to the province of Quebec reduced, (it was money I owed on an overpayment of the Solidarity Tax Credit), I should hopefully start receiving regular payments of the Solidarity Tax Credit to which I am entitled. Hopefully. I am not sure how long it will take the different levels of government to communicate between themselves and finally let me have the money that I need. I hope it won't be too long.
In the meantime, I will make my phantom payments to my line of credit and then use the credit to pay the credit card bills. (By phantom payments I mean that when I get money, I put it into my line of credit so that the account registers the payment, then I withdraw the money immediately and make payments to other accounts with it. The line of credit balance doesn't actually go down, but at least it registers that I am "managing the account responsibly" (lol) by always making some payments. Which I withdraw immediately after. So it's like canceling the payment, but whatever. Juggling air. I am juggling air. Magic!
The trouble with juggling air is that eventually the Line of Credit Balloon is going to pop. I will reach the maximum limit on that account and I will no longer be able to juggle money through it. So really this strategy is only a temporary fix. I try not to think about it too, too much, for fear that a lump of panic will form in my throat. I do liken the situation to The Little Dutch Boy. I don't want to drown in debt, but I don't know how long I can hold back the water.
No comments:
Post a Comment