Why am I waiting to put that $1000 toward my LOC?

After I typed yesterday’s blog, I made myself a few little financial notes around the office. As I was jotting notes, a question came to mind. On the weekend I discovered that I had a little more than $1,000 cushion in my “financial parking lot” that is earmarked for my personal taxes for 2010 and my final HST return. Why would I wait until April 30 to put it toward my line of credit?

Funny, I couldn’t come up with a good answer.

I promptly proceeded to initiate a transfer of $1,000 from my “parking lot” to my regular CIBC account. This morning, I plunked an extra $1,000 on the debt.

Wanna know the balance of my line of credit now?

$792.78!

Yep, that’s right, less than a grand! Let’s not get too excited yet. I’ll likely be debt-free for a month or so between March and April 30. This will be a false debt-free feeling. Once the CRA cashes my cheque for my 2010 taxes, I’ll know exactly where my new balance will be on the line of credit, since I’m using my existing cash stash to pay for my new motorcycle.

If I’m feeling particularly saucy today, perhaps I’ll put that $200 surplus that I’m projecting for the end of February toward the line of credit too. We’ll just see….

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3 responses to this post.

  1. I think you’re feeling saucy already! Go for it – even if you have a “false” debt-free feeling you’re not very far from the real thing! Oh I can’t wait til the day I can see a similar balance in my LOC. Still a ways off.

    Reply

  2. You are SOOO close now. Be proud of what you’ve accomplished! You’ve done so well!

    Reply

  3. Woot! Just saved a few bucks in interest!

    Reply

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