Like almost everyone else in New Zealand I spend too much money on my credit cards. I’m always full of good intentions about how I will pay off a bit extra next month to counteract my splurging, but in reality the dog gets sick, the car needs a new tyre or there’s a great deal on Hawkes Bay Merlot that I just can’t resist. I’ve seen the ads on TV about how I end up paying more than the principal in interest but I seem to be on a downward spiral – or upward if you look at my balance.
Looking back over my bank statements it seems I have a sporadic approach to paying off my credit card debt. Most of the time I pay the minimum or just above and every so often I put a bit extra on them to try to bring down the total. It’s a pretty hit and miss affair.
However, at the beginning of October those nice chaps at Inland Revenue are going to give me a little extra. Well actually, they are going to let me keep a little more of what I have earned but it amounts to a similar thing. I’ve been paying tax in New Zealand since the last millennium and I’ve had tax cuts before. I think. I can’t really remember. I can’t quite pinpoint the time when I went out and bought an Aston Martin because the tax rate went down. So I probably didn’t notice the extra cash that much. Maybe I should do something with the tax cut this time.
I’ve been to the Government’s website (http://www.taxguide.govt.nz/) and worked out how much extra I will get. It’s not much, but I have set up an automatic payment for that amount to start from October to pay my credit card bill. It won’t cover all of it but I can carry on making my haphazard efforts as well. And over time I should see that credit card debt reducing. Which means I might be able to upgrade that Merlot.