Fri 17 Mar 2006
Credit Card Update: One More Gone
Posted by coglethorpe under Debt
The assault on my debt continues…
I was able to pay off one of my medium balance credit cards with my tax return. Two cards were pretty close with their balances, so I looked at the interest rates to see which one I should pay off first.
Boy, am I glad I did. I had a card that I could pay off in full every month, or select an option to pay down the charges over time. In desperation to make payments, I chose to pay over time. What I didn’t notice is that card had nearly a thirty percent annual interest rate for that option. Well, now the balance is zero.
The big problem is that my spouse doesn’t want me to close the card. I’m not kidding. She sees the card as a security blanket. She wants it closed, but only after we have more savings. So I put closing that card on hold. I’m not crazy about the idea, but I’m doing it for now.
The other challenge came with my medium balance bank card. I ended up using it when my debit card - which had a bad magnetic strip - failed. I have a new debit card now, but I also noticed that credit card’s balance went up just a little since I last checked.
Here’s the new card rundown as of today (changes in bold):
- Bank Card 1 (big balance)
- Bank Card 2 (medium balance)
- Store Card 1 (medium balance)
- Bank Card 3 (medium balance)
- Bank Card 4 (zero balance)
- Store Card 2 (zero balance)
- Bank Card 5 (zero balance) CLOSED
- Store Card 3 (zero balance) CLOSED
- Store Card 4 (zero balance) CLOSED
- Store Card 5 (zero balance) CLOSED
- Store Card 6 (zero balance)
I have to go back and check on the cards that are at zero and not closed. I think I’ll end up closing them this weekend. I’m also due a big paycheck at the end of the month, so I may end up closing Bank Card 3 by the time I report to you next month.
It’s all part of my financial goals for 2006. Each month I’ll get a little closer and I hope to give a very positive report at the end of the year.
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Pingback from financial reflections » Blog Archive » Be Careful With Your Debit Card
March 28th, 2006 at 1:23 pm[...] I use my debit card (instead of a credit card) now but, I’m always a little leery about it. The money comes straight out of my checking account. If there’s an error, then there’s at least going to be a temporary problem. I recently came across two stories that illustrate the problems with debit cards: [...]
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March 30th, 2006 at 9:01 am[...] Debt Reduction. I wiped out one of my cards with part of the return. That felt so good. [...]
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April 12th, 2006 at 8:58 am[...] Unload my credit cards. I’m cash flow strapped. Unloading the debt will free up the money I need to invest. [...]
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April 29th, 2006 at 9:27 pm[...] Paying off debt provides you with a sense of immediate freedom - Every credit card I unload is sheer bliss. There has been a bigger load lifted from my mind than just the monthly payment. I’ll always have utility payments. I’m on a path to eliminate my credit card debt forever. That means no more payments ever. [...]
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Pingback from Credit Card Applications: Deals or No Deals?
May 24th, 2006 at 7:38 am[...] It’s all part of my plan to get rid of my credit card debt. I keep moving forward with my monthly goals, hoping to reach my yearly financial goals. So far, so good. Related Posts: [...]
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Pingback from On Tips and Fees
June 29th, 2006 at 8:45 am[...] I just canceled another one of my credit cards this week. It had a zero balance, but I just kept it around. That was partly out of laziness and partly out of a warped sense of security. The good news is that I’m running out of cards. What scares me is that I have a very small emergency fund, and have an feeling that I should hang onto a few cards “just in case.” What changed my mind was the annual fee the card charged, and it got me thinking about all the other “fees” consumers face. (warning, rant follows) [...]
