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Personal Finances / Credit Cards and Consumer Debt


Subject:  Getting Serious Date:  10/15/2005  3:36 PM
Author:  Xenonax Number:  212573 of 312957

I have long talked about getting rid of debt. I wasn't doing too bad with debt a few years ago. Then, I got married, bought a house, sold a house, bought a house and fixed it up. About one year ago is when things where the worst. I had every credit card maxed and I wasn't paying enough attention to get my payments in on time for at least one of my cards.

Now, things are a bit better. I am done (for now) renovating my house--it is livable. I now have a permanent mortgage so I don't feel like I'm out in limbo as I was with the construction loan. I have eliminated a few cards and am now staring at 4 credit cards as my primary enemies.

Now, none of these credit cards are maxed out, but some still have some rather high balances on them. Here is the break down.

MBNA VISA:    7,218.44    13.99%
Discover:     4,717.17    14.49%
Chase VISA:   1,743.45    11.89%
Home Depot:   1,053.91     0.00%

Until today this looked a little bit worse. I just got finished talking with a representative at MBNA and managed to lower my interest rate from a usurious 17.74% to 13.99%. As might be expected, I am quite pleased with this change.

I think that to keep myself on track, I will post updates on this board and try to glean what I can from you all. I do have other debts that will be focused on later, including school debt, two cars, a mortgage, and a line of credit.

Currently, I intend to use the line of credit to pay off some of the above debts quicker as I have a 6.9% rate there. Every time I make a payment on my line of credit, I will advance what is available so that I can expedite the payment of the credit cards. I also will be looking at balance transfer options.

MBNA does currently have the option to transfer at 0%, and I am seriously weighing this now that MBNA is no longer my highest interest card. I do not consider a balance transfer a threat to my plans to eliminate debt as I have stopped using the cards altogether. In fact, I have long since cut them up into the tiniest pieces that I could manage and disposed of them.

I am really serious about getting rid of these debts and look forward to sharing the experience here.

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