Re-evaluating Debt Situation (Long)
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| Fri, 01-14-2005 - 5:49pm |
I took some time today to re-eval our debt situation. The credit card with 0% interest will expire next month. Obviously, it hasn't been paid in full. Therefore, I had to do some transferring.
As previously mentioned in another post, I have been ordering stuff on-line for the kids. I have never done that. I have been feeling down and stressed lately. The car we rented in Puerto Rico was charged to my husband's credit card. It's over $600. We rented a full size sedan because a mini van would have cost us over $1,000 to rent for two weeks. My husband purchased some shoes before going on vacation. He charged it on the credit card. The airline tickets were charged on the credit card. I haven't paid that yet.
As of 1/1/05, we had $42,904 in total debt. Our miniman payment due for the month is $788.00 The bills have arrived for this month. I will only be able to snowflake $50.00 this month. That really sucks. I feel that the year is starting badly.
We have over $10K in savings. However, I can't touch that money until we close on our mortgage and construction loan. It's driving me crazy. I know, we will have money left. I intend to take what's left and pay it toward the credit cards. The credit card debt was easier to manage when everything was on one credit card.
Anyway, our debt information looks like this.
AMERICAN EXPRESS balance is $711.03 (Last month, we spent $581.43 in Costco for groceries. That won't happen again). The remaining balance of $129.60, is stuff I bought on-line for the kids. This bill should arrive around the 20th. I intend to pay it in full.
BANK ONE (AMA) balance is $1,144.00 <9.42% interest> (My husband's shoes, his christmas present, stuff needed for vacation, kids needed booster seats). I intend to pay this off in two payments.
CHASE balance is $2,400.00 <3.99% interest for the life of the balance>
TIMESHARE balance is $4,700.00 <13% interest>
CITIBANK balance is $7,000 <0% interest until next month>
My STUDENT LOAN balance is $7,998.00 <3.12% interest>
BANK ONE (BEST FRIENDS) balance is $9,160.00 <2.99% interest for the life of the balance>
My husband's STUDENT LOAN balance is $10,310.00 <8.25% interest>
This brings our total debt balance to $42,712.00. I am not including American Express.
Last year, I snowflaked over $14,000.00 I deprived myself of so much. I want so badly to at least payoff the credit cards before we move into our new home.
During this repayment, I have been funding our freedom account. I am glad to post that recently, the bill for our timeshare maintenance/tax fees arrived. I paid it in full before it was due (from our freedom account).
Thanks for reading all this. I feel a little better posting this.
P.S. I get so angry at him. When he purchased the shoes, I just wanted to tell him "NO... It's all your fault we have this credit card debt. You're not allowed to buy anything for yourself." However, i know he really needed shoes. All of his, were in very bad shape. They weren't even worth donating or giving them to anyone.
MYM

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Deep breath in, deep breath out...You did an absolutely phenomenal job snowflaking last year. So, you already know that you can get the balances down!
There are lots of good 0% offers out there that hopefully you'll be able to surf balances over to-I agree, when it's all on one card, it's much easier to deal with. That, and I know that I defintely feel like we're getting somewhere when I am not paying multiple little balances!
When are you moving to the new house? Are you going to pay off the credit cards without depriving yourself too much? I know (and you know I know, lol) that it is sooooo tempting to say, "Any extra money goes to bills. Period. And, because I am in debt, I will have NO FUN while I'm getting out so that I can pay it all off sooner." I know this because I have the same darn conversation with myself almost every month. The reality is that if you don't allocate some 'blow' money, you run the chance of blowing the budget instead. You did it with the online stuff for the twins, I did it with books last month!
The good news is: you can 'start over' anytime! There were times last year that we maybe flaked $5/week. There was a long stretch in there that I thought I'd never get anymore flakes. As you pay stuff off, you'll get flaky again!
hang in there-you're a role model on the board you know! :) (and a darn good one too, IMHO)
~Lisa
Lisa,
Thanks for your kind words. Also encouraging. Construction will start around March. In the Poconos, builders don't start construction during winter months. Hopefully, the house will be ready for us to move in around October. We also would need furniture. I plan to (told my husband) pay cash for every piece of furniture we need.
So far, these were the best offer we got (for the credit cards). I am waiting impatiently lol! for another 0% interest credit card offer to arrive.
Thanks again. I've been dealing with so many mix emotions about this debt.
MYM
Mymartes,
Just wanted to say hang in there! I second what luckyme03 said about you being a role model on the board. You have been through a ton, with your children's health, the circumstances that created your debt, etc., and knowing that you keep plugging away at the debt monster is an inspiration.
Hugs!
Wendy
ITA with the other posters! You are doing great and you are a great encouragement to other posters with everything you have accomplished so far. It's only natural to get discouraged at times, but you are making headway.
Have you tried calling your current cc's and let them know you are getting 0% offers in the mail and seeing if they will match it? Or more low APRs for the life of the balance?
As Nemo (and I think Becky says) "just keep swimming, just keep swimming". You have accomplished so much in a short amount of time...
I think you are doing great! $14,000!!! that's amazing!
Everyone has setbacks once in awhile. We had a small one last week, where we went out for lunch. But I feel fine about it. Because even while still on this debt journey, you need to pull over once in awhile and pause.
:) PS. A snowflake of $50 is fine! Every bit counts, doesn't it?
BTW - I live in NJ, about an hour from Bushkill, PA. Sorry you had to leave the warmth of Puerto Rico for the cold front that has hit us!
Sandra
Thank you to each one of you that replied. Your kinds words did help me. I was feeling so down. You all gave me the boost that I needed.
Thanks again. You are all great!!!!
MYM
While my husband was getting two certifications for Oracle (computer program), his student loan was in forbearance. However, once he received his certifications, we started paying on it again.
I know I can put my student loan on forbearance. I never did because I wanted to payoff my loan with his money. When I found out the circumstances that created the credit card debt, I thought long and hard about divorcing him. As time passed, I simply continued paying on my student loan. I hope that makes sense to you.
MYM
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