Budgets

Thought if maybe I wrote this on here then I will get my head around it a little better :)

Current Balances on Cards
Victoria Secret - $69.49
Capital One - $147.47
Target - $56.85
Old Navy - $1,084.19!!!!!!! - This is rediculous!!!

So this month I get a bonus paycheck, that is, I get three paychecks in one month, it only happens twice a year so I'm taking advantage this month. I will have $600 extra that I can use to pay some bills. So after the $600 is used to pay the above I will be left with a balance on my Old Navy card of:

$758.00

Now I thought about leaving this and paying it off over some time. But the problem is the APR on that card is 27.9%!!! So I'm getting killed in iterest payments. I do have savings but this would pretty much wipe them out. However, I learned in economics 101 that it's pointless to have savings if you have a debt that is accruing interest. So I am going to bite the bullet and pay off the remaining balance of my Old Navy card with my savings. This would leave me a grand total remaining in my savings account of:

$226.00

Now it is a little scarey to think that all I will have tucked away for a rainy day is just this tiny amount, seeing as my savings have not dipped below $1k in a few years and I won't be making money from judging this year, but I do make more money now, and recently I have been pretty careless with my spending. If I hone it in some I can probably save around $200 a month, which would enable me to be back up over the magic number of $1000 by Christmas. It would mean definitely putting off the bike purchase until next year but I think that is inevitable anyway now. It's going to be tough but I think it has to be done. Here's to a thrifty few months, less partying, less drinking, less shopping!!! I need to start to come down off of the vacation trip I've been on since moving up here and realise this is still real life!