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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Financial Update Date:  1/30/2006  7:02 AM
Author:  ApacheMech Number:  219679 of 310650

Sorry, the time limit was up at the internet cafe. The HELOC was a really bad idea, but I had no choice in order to make ends meet. I had put all of my credit cards (higher than 15%) and a vehicle loan and some other consumer loans with high interest rates together so I could set up a snowball with more than $75 a paycheck payment. I had to put the vehicle on it to make it worth while. I turned an approx. $750 a month ordeal into a $450 a month payment to free up some cash flow as well as gave me some more income tax return money at the end of the year for further payoff.
I had around $18,000 or so in credit card debt on six different cards. I now have $7500 on one, soon to be paid off. I had an orthodontist bill of $4000, $3500 freezer full of food and a 2nd vehicle loan for DWs car. One debt consolidation loan $28,000 and a $42000 HELOC. I have left the HELOC in an interest only mode and have made the min payments on the debt consolidation loan bringing it down to $18000 or so.
Bottom line is: 6 months worth of work translates into $80,000 worth of debt turned into $67,000.