Confessions of a Shopaholic

I paid off my smallest credit card balance today. It represents only about 10 percent of my overall credit card debt, but I'm trying to be proud of myself anyway. Even reducing my total burden by 10% is an accomplishment, a step in the right direction, and I need to feel good about this win to sustain me for the more difficult work of paying off the two larger balances.

When I first started thinking seriously about getting my credit card debt in hand, I researched the best way to do it. (Answer: find a leprechaun, steal his gold, give enough of it to the creditors to make them go away.) It makes the most financial sense to pay off the credit card with the highest interest rate first, but several sources suggested paying off the credit cards in order of smallest to largest balances to give yourself some early successes to boost your spirits and resolve. It makes sense. The interest rates on most people's credit cards will probably be sufficiently similar that if you're paying an extra percentage point up or down, it won't really kill you compared with how much money you've already squandered on interest. But I didn't get in to credit card debt because I'm good with delayed gratification, so it's important to keeping myself focused on my goals that I see some pay-off to my hard work early on.

Anyway, the actual scheduling of the payment was a little bit anti-climactic, I have to say. I had hoped to feel more excited about it. Maybe I should have set up a balloon drop for myself. It's also hard to know what to do to reward myself for a job well done if I'm not supposed to be overspending or overeating. But, good for me. I'm making progress on my new year's resolutions and it's only January 4th.