How did the balance get so big??
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| Thu, 07-14-2005 - 1:36am |
I am in shock. Not that it's a good thing, but I thought I *only* had $25,000 in debt. Lo and behold, it is actually $36,000. :( Oh my gosh. I live with my boyfriend and he has no idea it's this high. I thought I was making large payments. I guess I am, but with all the eating out and the other unnecessary expenses, I have been racking up a huge amount of debt. There is good news...I just paid of my car and it's still in working order. So there's an extra $250 a month. The interest rates on my cards are good. I have five cards. The highest interest rate I have is 14% on one; three of them are between 4-8%, and one is at 3%. So I don't have high interest rates. Maybe that's why I didn't notice the huge balance. :( I always make way more than the minimum payments. I guess I just need to freeze those darn credit cards until I get them paid off. I worked out a plan to pay them off in 5 years at about $800/month. That seems like a lot, but I know I'm paying more than that now. I'm just not good at budgeting.
So, anyway, I just wanted to say hi! I've enjoyed reading all your tips about saving money and paying the cards twice a month, etc.
Shannon

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I just wanted to say sorry that I didn't post this in the introduction section. Sorry! :)
Shannon
Wow we have lots of Shannon's.
Well unfortunately I too have learned the hard way, and if you continue to use the cards the balances will continue to grow. Make a budget and stick to it. I at one point was spending about $1000 a month eating out. I am sure if you just start eating in you will find a huge snowflake to put against your debt.
I do think your interest rates are higher then I would pay. Call each cc company and ask for a lower rate. IF they do not cooperate move the balance to another card.
Please consider joining us in the snowflake challenge. Its very encouraging to see your numbers in black and white and having them get lower each month.
Hope this helps,
SHannon
Shannon
Hello Shannon and welcome to the DSG.
All my best,
Danni
Thanks for your responses! Like I said, I have one card that is 14%. I called them and they aren't willing to decrease the rate. No problem. That one will be paid off in about 7 months. Then I will "use" them to transfer a balance over at 2.9% for another 6 months to pay off another card that the 0% rate will be up on. I don't want to open any new cards. I applied for an AMEX Blue that's 3.9% on balance transfers until it's paid off. I've never been declined for a card, so we'll see. If I am declined, I'm not going to try to get any other cards. I'll just play the stupid balance transfer game between my current cards. They all offer really good balance transfer rates. So, I'll get it taken care of. For now, I will stick to this board and learn lots of tips!
Thanks again!
Shannon
First of all, welcome to the board! You have found a great place for lots of encouragement to help you get this debt under control and get it paid off. Definitely think about joining the snowflake challenge, it has been a huge motivator for me. When I finally pulled my head out of the sand in January of 2004, I realized that I was over $26,000 in debt and not sure how I would ever get it paid back. I have read tons of books on debt management and don't really have a favorite, there are things I liked and didn't like about each of them. I have surfed all over the net for debt reduction inspiration and this board has been the best for me by far! Thanks ladies! :) I'm happy to say that as of today, my debt balance is $10817.28 and I have a plan to have it all paid off by March of 2006! A day I will celebrate! Stick around here, I think you will enjoy it! I am amazed when I think how much my attitude towards money has changed in the last year and a half. I think you will be too! You can do this! Welcome aboard! :)
~leanne
~leanne
deciding to be happy doesn't mean that everything is perfect, but that you had decided to look beyond the imp
Leanne,
Great job! Wow, I can't believe you've already paid that much off. I guess if you put your mind to it, you really can. Thanks for the encouragement!!
Shannon
Welcome here, Shannon! Yeah, it's always an eye opening moment to figure out exactly what it is that you owe, but it's one of the hardest steps. Now that you've done that, you can figure out a plan.
Budgeting, although not my favorite activity, doesn't have to be hard. Here's a link to one that helped me get over my 'budgetaphobia' LOL!
http://www.daveramsey.com/fpu/home/index.cfm?FuseAction=dspContent&intContentID=135
When you get to the page, look for 'Quickie Budget Form' and have fun! It's a VERY basic budget plan. For a more detailed one, you would want the 'Monthly Cash Flow Planning Form.'
Defintely surf those balances! And congratulations on paying off your car!
Lisa
"I definitely cringe when I read that folks are using cards for eating out. I did that for many, many years. At some point, you look at your debt total and look around and wonder what in the world do you have to show for it. When the answer is nothing...it's really hard!"
It really depends on how you manage it. I use my credit card to pay for gas, eating out, hotel stays, etc. and ended up with a free ticket to Europe (using points/miles). The key is to pay in full every month.
Hi Shannon,
I'm another Shannon on this board too! I'm reading the book Debt-proof living by mary hunt. I HIGHLY recommend it, get it from the library, there are amazing ideas in there and it has opened my eyes up alot. Good luck.
Shannon
Hi Shannon,
I am so disappointed..You keep mentioning this book, but my library does not have it. Is it new? Is it worth buying?
Shannon
Shannon
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