I got my first line of credit when I was 18. It was for a furniture store and they gave me something like $2,000! WOW! What a feeling!! That day, I used it all to purchase TV's, a dishwasher, microwave, stove, radio and I think a refrigerator. I can't remember anymore.
Once I got that line of credit established, I went to Mervyn's and they gave me a line of $200. From there, I went to more and more places and ended up with cards to Dillard's, Victoria's Secret (yikes!), Macy's, and more that I just can't remember. This was many years ago.
I managed to rack them all up and thought I had things under control...uh huh, right... Over time I was able to pay off most of them. Then I opened up new accounts to other places and acquired new credit cards. You know how the story goes.
Over the years I did my share of transferring balances to cards which offered me lower interest rates which brings me to the current day.
I currently owe 4 credit card companies and the same furniture store. The furniture store was paid off a long time ago for the initial $2,000... as well as many other hundreds I charged over the years.
To add to this debt, I also owe a PERSON. To me, this is one of the worse debts to have. I feel guilty when I owe a real person money rather than some huge multi-billion dollar lender. And then there's the car payment.
So, here's the rundown:
$172.47 Furniture Store (21.75%)
$500.00 Dentist (0%) -- My last payment will be in March!
$966.93 Wells Fargo (17.24%)
$926.05 Capital One 1 (10.41% -- Down from 12.42% on my Dec. statement!!!)
$1,740.00 Personal (0%)
$2,213.75 Capital One 2 (3.99%)
$5,476.52 Car Loan (7.5%)
$12,192.00 American Express (7.99%)
$24,187.72 TOTAL
Once I have paid these debts off, I plan to keep two of the cards: Wells Fargo and American Express. Why? Well, the American Express card earns 1-2 skymiles for each dollar I spend and the Wells Fargo card 1 point for every dollar I spend. I figure I should keep a VISA and AMEX and use what is accepted, such as to pay car insurance, cell phone, utilities, etc. Trust me, after the mess I've been in for YEARS, I do not EVER want to owe credit cards again!!! I would pay the cards as I use them, and only if I have the money available, sort of like a debit card.
Yes, I know that both cards charge me fees, AMEX charges me yearly for having a Platinum card and Wells Fargo $19/year for the reward program which I'm ok with. Normally I cash the points in on the WF card for money!! The reward/point system on the WF card is better than the one tied to my bank account debit card. The skymiles on the AMEX card have come in very handy over the years for flights that I didn't have the money for.
Who knows, maybe when this is all done, I won't want the cards anymore!
Anyhow, my plan is to pay the smallest debt first, that would be the furniture store. Next I plan to focus on Wells Fargo. The dentist will definitely be paid off in March...they charge my card on the same day every month so I have to make sure to pay the CC or it won't go through!
One my dentist bill is paid, then I will have more money each month to put towards the CC debt.
I've recently set up a budget for myself and will see how well I can stick to it.
I work about 30-33 hours a week at my "day job" and do ebay for my part time job. When I receive payments from buyers on ebay, I will apply the profits to a bill that is due during the current month whether it be a utility, car insurance or credit card. I used to have a bit of a different system but am going to try this.
The fees that ebay charges get put into an ING account until they are due, that way I don't have to scrape at the last minute to pay the piper. I love ebay! But hate the ridiculous fees!
I buy things to sell them on my ebay store, so, I need to figure out a way that I can still do this AND pay off the credit cards since I usually use the cards to buy the stuff. It should all work out...if I can just get the stuff I have to sell, listed.
Alright, this is a long first post, and I've covered the basics, I think.
Oh, and I won't uncover my identity. I'm chosing to do this blog anonymously :)
♥ A girl in debt
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hey, why don't you look into other cards? those annual fees are unnecessary. I get miles on capital one.. never expire and on all airlines.. i could get cash back on it if i wanted....and i have a merrill lynch card that gives me rewards too...i think u can eliminate those fees... keep your oldest card open and maybe the one with the biggest limit to help out ur credit score...
ReplyDeleteI was thinking the annual fee for AMEX could be waived once I am paid down enough. They are usually willing to work with you. I could be wrong though! My AMEX card actually has the highest limit and I've had it for about 8-9 years or so.
ReplyDeleteThe WF card, I've had it for about 12 years. The limit was lowered last summer from about $3,500 to $1,200. I'm sure it had a lot to do with my credit score dropping.
I've had the Capital One cards for the shortest amount of time and they aren't doing me any good. At least I have a 3.99% interest until I pay it off! Also, I don't have this card so never use it. They never sent me a new one when the last expired years ago.
Once they are paid off, I'll look to see if I can get better deals and still get rewards :)
Thanks for commenting!