Debt Reducers

[Handbag Lady]

Curious - will they NOT apply the increased rate if you do close the card since they listed this as a "option" Because if so, and your credit rating is still good - I wouldn't worry about my score as much as I would worry about an insane rate of like 31%.

You are correct. They won't raise the rate if I opt to close the account. I need the open credit amount in the difference between my available credit and what I owe to keep my credit rating where it is.

If I do get a loan from the credit union, then I would pay off the card completely and just owe the balance plus 5.7% to the credit union. I haven't used my credit cards in a long, long time, so I'm not worried in becoming one of those people who combine loans to pay off cards and then rack up the card debt again.

 

[DisneyShannon]

I took a loan and paid all my credit cards off. I hope I never get in this mess again.I cut all of them up.

Keep up the good work everyone.

 

[ameraumi]

I paid off my Visa this morning! My tax refund hit my acct this morning and I immediately transfered it to my Visa.

Next up: Discover.

 

[brockscandy]

I paid off my Visa this morning! My tax refund hit my acct this morning and I immediately transfered it to my Visa.

Next up: Discover.

Good for you. Keep up the good work!

 

[NCTWINSMOM]

Just sent off another payment to Best Buy. Just two more to go and it's paid off!

 

[WDW4TheGirls]

Just sent off another payment to Best Buy. Just two more to go and it's paid off!

How funny--we have the same Best Buy timeline, but now we need a new roof, so guess where our Best Buy payment will now go???? How disappointing, I was really looking forward to having that money!

 

[minnie1928]

Ok, this is NOT debt reduction but it could work that way...We are relocating to NJ in a few months. Our contract on the house was finally accepted friday and I locked in a rate on our mortgage. I found a local bank offering 5.75 (w/ 1 point) compared to the "big banks" offerings of 6.50 to 6.75% (again, with 1 point). That lower rate will definitely free up some cash to help pay off the mortgage sooner!

 

[JoanneNC]

Ok, this is NOT debt reduction but it could work that way...We are relocating to NJ in a few months. Our contract on the house was finally accepted friday and I locked in a rate on our mortgage. I found a local bank offering 5.75 (w/ 1 point) compared to the "big banks" offerings of 6.50 to 6.75% (again, with 1 point). That lower rate will definitely free up some cash to help pay off the mortgage sooner!

Or sadly pay those horrible NJ property taxes.. Sorry ex-NJ resident here - it's INSANE there..

But seriously - GRATS on the new home and great rate

 

[minnie1928]

Or sadly pay those horrible NJ property taxes.. Sorry ex-NJ resident here - it's INSANE there..

But seriously - GRATS on the new home and great rate

Funny that you mention the taxes...we hear that a lot! People are STUNNED when we tell them that on a prorated basis that we actually pay more property taxes in PA!

Thanks for the congrats...I'm excited!

 

[akmom]

How funny--we have the same Best Buy timeline, but now we need a new roof, so guess where our Best Buy payment will now go???? How disappointing, I was really looking forward to having that money!

I feel your pain!!! Some days I think owning a home is over-rated! lol

 

[MinnieVanMom]

I learned something new when I slipped back and bought the Wii. First I thought I would use my paycheck and pay the bill off in full. It was a good idea but then I would have no money for fuel.

So I paid half the bill off and now I owe. I have money for fuel but at what cost???

I have been upset for a few days and then I realized the lesson DR is trying to teach me. It goes beyond the cash flow and debt snowball! I need to learn how to change my relationship with money. How not to buy, how to save and how to have the money for things I want.

It was a hard lesson, but I am going to pay off the CC for the Wii on the 3rd and then it is back to the last 3 cc's.

 

[NCTWINSMOM]

How funny--we have the same Best Buy timeline, but now we need a new roof, so guess where our Best Buy payment will now go???? How disappointing, I was really looking forward to having that money!

Gotta love it when murphy comes calling!!!

Guess the good news is that money will be used for the roof instead of a credit card paying for it! Paying cash is a BIG plus!

 

[NCTWINSMOM]

I have been upset for a few days and then I realized the lesson DR is trying to teach me. It goes beyond the cash flow and debt snowball! I need to learn how to change my relationship with money. How not to buy, how to save and how to have the money for things I want.

It was a hard lesson, but I am going to pay off the CC for the Wii on the 3rd and then it is back to the last 3 cc's.

We have all slipped and been at this point...the good news is you figured it out!!!!

Now you know your weakness and now you must come up with a support system. Keep listening and/ or watching DR. Surround yourself with accountablily partners (I like having partners that are older, they have been through this already and have plenty of tips to pass on).

 

[If U Had Wings]

I find this thread uplifting when I need help or a nudge to keep reducing the debt.

So far, I am on track to pay off one card by December!

I just got a statement from my other card, and Providian (wamu) is raising my interest to 31.99%

How insane is this? This card started out at 3.99% (not a limited offer). It was raised bit by bit over the years.

I have no choice but to try for a small loan from the credit union. I can't possibly pay it off within two years at that insane rate. I called them and there is NO reason given, not even based on my credit history. My credit rating is still good. My other option is to just close the card, per Providian, but I know doing that will hurt my credit score. Not going there. The credit union has a special for 5.7%, so I have an appointment to meet with them so see if this is something I can do.

Thoughts? Anyone else in the mess?

I feel your pain on this one. I had my WaMu card go up from 8% to 33% in just a little over a couple of months. I was 2 days late on my payment one month, and then my bank screwed up paying them through electronic billing so I was late 2 months in a row. I transfered the balance over to a Wells Fargo card, I had but never used with a 8.5% rate. I made 2 payments to Wells Fargo. Both right on time, and both for more than the minimum. I received a letter last week they were raising my rate to 12%. Ugh!! It's still better than the 33%, but I'm still annoyed. I'm debating whether or not to just close the account so I don't have to pay the new rate.

I should start looking into a personal loan and just paying everything off all at once. I feel like I should be able to make more headway with just one payment.

 

[caitty13]

So if you close your card a new rate can't take affect? In the past when I have closed a card I was given a default rate??

 

[If U Had Wings]

I think it depends. The letter I received that told me that if I didn't agree to the new terms, I could close the account and my existing card terms would stay in effect.

 

[Juliee8]

I just paid off my Penney's card today!!! Not a huge gain but it gives me $150 more a month to put towards the next card. Next, on to the Sears card.

 

[NCTWINSMOM]

I just paid off my Penney's card today!!! Not a huge gain but it gives me $150 more a month to put towards the next card. Next, on to the Sears card.

Juliee8 that's great news! It feels so great to get rid of each one!!!!

 

[gillenkl]

I'm in on this too. I cancelled our June disney trip to keep on track - sad, but it will be worth it when our credit card debt is gone. Estimating 15 months until paid off, but pushing to be done in 12 by cutting back even more.

 

[pperfectmom]

I haven't read the whole thread but I'm signing on too. We do have quite a bit of credit card debt looming over us. Luckily, we just paid off my car so we will have that money to put to a credit card. It's not much($135/month) but that's something I guess. We got into trouble with credit cards while building our house. After getting a construction loan the price of materials skyrocketed(right at the beginning of the war) and the bank wouldn't give us any more money. So we ended up finishing our house with credit card. Not a good idea. We probably should have just lived in a half-finished house. We had the hardest time even finding a bank that would give us a mortgage that covered our land and the inital construction loan, never mind more to cover the credit card debt. Luckily we do have a fixed rate mortgage but it will be several years before we actually have any equity. I know it is stupid to be planning a WDW trip(I tell myself that 20 times a day) but we are going to use the tax rebate and won't add to our debt. I looked at the Dave Ramsey website but it seems you have to pay for any real service. I sure don't have the extra $$ to give to him every month. What book should I be looking for by him?