Falling Interest Payments

Currently our LOC is without a balance and has been for a few months. Thanks to some 0% Credit Card Opportunities. We have been moving ahead nicely with payments due to this interest freedom.

I created this graph to obtain a visual of our decreased interest payments. Since, the LOC is the only place we ever pay interest outside of our mortgages.



In the beginning, I would only pay what was "left over" on the line. Or would you say, my regular payments. I did pay on principal, yet only what was left after I moved our cash to savings to pay for the monthly charges (i.e. groceries, fuel etc)

Last year, I did the change up, where I applied all dollars to the LOC and then loaned money when the credit card was due to pay the bill. Thus, instead of earning crappy interest, I was saving us from paying larger interest.

This one little change worked wonders - as you can see from the graph.

Immediately our interest was effected and we were able to pay down more principal each month. Followed, by the transer to 0% in the middle of last year which has left us paying ZERO DOLLARS IN INTEREST and now we are EARNING DOLLARS IN INTEREST.

All the while our debt balances are decreasing.