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Using a big eraser on my debts
Posted by: HoboSylvain | 2012-03-03 08:36:21 | Dorval, Quebec, Canada
Keywords: finances, money, preparation
When I planned my financial future a few months ago, there were a few uncertain income (like my sales on eBay) but I also forgot a few other sources of income. One of them just surprised me this past month and gave a big push to eliminate my debt quickly.

February is the month in which we get our year-end bonus at work. I didnít think about it when I was planning my revenues, because it has been a very low amount in the last few years... and honestly it didnít change much my situation in the recent years.

But this year, it was different and we got a nice sum. I placed a bit of this big amount in my RRSPs (registered saving plan for retirement, escaping taxes) but I also cashed in over $2 600 which went directly into my credit card debts.

In the last few weeks, I also finally reached the mark of $1 000 of net revenues on eBay (after all eBay and Paypal fees). I wired that amount into my bank account and applied it to my credit cards as well.

With those I was then able to reduce my debts by over $3 500, totally erasing my American Express balance (with a highest interest rate than my Visa). It was nice to see my online statement and see the total at $0. It was quite a thrill in fact. :-)

I will increase my eBay activity and I hope it will pay off in the next month.

With this great month, I can pull back my debt-free date to June (initially planned for September).  In just two months, I already eliminated half of my $9 000 credit card debts.

Diversification

In the preparation for my new life, I began to diversify my bank accounts.  For about 30 years Iíve dealt mostly with one financial institution.  Desjardins is the biggest player in Quebec, but not really present elsewhere on the planet.  So, to help me be able to withdraw funds from all over the world, I just opened a bank account with ING Direct: thatís a subsidiary of the big ING bank from The Netherlands.  Iíve just deposited a minimal $50 in the account for its activation.  Once Iíve cleared my debts, Iíll open another bank account elsewhere, just not sure yet with which bank yet.

My goal is to store $1 000 in 3 or 4 different bank accounts so I can be flexible when roaming the globe and not depend on one single card to do my withdrawals. That diversification will protect me from being stranded without money in case of robbery, losing an ATM card or simply because the local ATMs donít accept my card at hand. Having multiple cards will expand the range of the ATMs Iím able to tap on.

Related posts:
Itinerary and finances
First year of savings
Spent more, produced less
Blog away...
Becoming more productive towards my goal

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