You have selected and begun to execute your plan for getting out of debt – and you have just paid off that first credit card debt.
You are awesome!
Paying off that first account is an important milestone. There’s a tremendous feeling of satisfaction which accompanies the completion of any worthy goal. Take a while to enjoy the success – and then get pumped to move on to the next step in your plan.
Before you move too fast, however, check one thing – the next monthly statement from your credit card company. You may be in for a surprise.
Even though you paid your balance – in full – you may still owe some residual interest.
Most companies charge interest based on your average daily balance – so while your current balance may read zero – the interest calculation is based on the average of the balance, throughout the month. You will need to pay this interest, prior to your next statement.
When faced with this residual interest charge, I contacted my credit card company. The entire conversation took less than 2 minutes and the company waived the interest charge! I have found that contacting them via the “chat now” feature is really effective and saves a lot of time.
Side note: Contacting the credit card company worked for me. Each and every financial situation is unique. I’m sure that various credit card companies have different policies for different cards, individuals, and circumstances.
Even after hitting zero – you’ll want to monitor your various accounts. Check for possible charges – for things like subscriptions or annual dues – about which you may have forgotten. Stay on top of things so you’ll know if any surprise charges hit your account.
Congratulations on paying off that first credit card debt! Now, on to the next one! Blessings.