I apologize for the lack of updates in the past few days but I’ve been out of town for business. I applied $1000 of the IRS stimulus rebate check to the balance on our CITI PremierPass Card. The good news! that balance is down to $6,461.81. The original plan was to apply it to CITI Professional card but I changed my mind at the last minute and decided this will help lower the interest charge next month on the highest balance. I don’t really follow any method for getting out of debt so this is OK. I know Dave Ramsey followers would never apply a debt payment to the highest balance, I say do whatever works best for getting out of debt.
As some of you might remember, the spouse and I currently have over 20 credit card accounts. This week I used my American Express Blue card for all my work expenses. Somehow other charges like shopping and entertainment went on that card. I believe I charged well over $700 over the last 4 days. I also used my Amex Corporate card for all my hotel expenses. The goal for June is to get these American Express accounts back to $0.00 and continue to reduce the CITI Premier Pass card. Best Buy and CITI Professional will have to wait until July or August for those balances to go down.
I hope to get rid of all this old credit card debt before this year is over. It would be nice to be able to use a credit card and pay the full balance due every month.
Let me know what you think, share some thoughts with me.
HS
Saturday, May 17, 2008
AWOL and Balance Updates
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4 comments:
STOP using credit cards if you want to get out of debt.
I'm where you want to be and it sucks. We paid off our CC last year and now are at the point of still using it but paying it off every month. I still feel trapped by that payment. I'm working really hard to get to the point of not using the card at all.
t
I think this is one of the major problem today....!
Many peoples select a wrong one...!
your info is valuable for me...
thank U for your Gaudiness
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bob
The best online resources and information for credit card debt.
Stop Credit Card Debt
"Entertainment?!?!?!" You have ENTERTAINMENT EXPENSES with your debt level?
At your level of debt, you're in no position to have movie money.
Here's the five things you can realistically spend on:
Food
Gasoline
Electric
Medical
Debt Payments
Note that there's no Netflix in there. No Cable TV, No Snacks, No Beer.
If you don't cut out everything but the "core expenses" you will NEVER get out of the hole. NEVER.
Using a credit card to buy stuff you can't afford is insane, especially if what you buy will immediately drop in value (hello $1,600 television?).
Living in your means can be very disheartening at first, but it can be done, and after a while, it feels good.
I make in the low 6 figures. I have no debt, other than a mortgage, and our house would have to drop 75% in value for the loan to be "upside-down".
Despite the good income, despite the lack of debt, I know I can't afford a New Car. I know I can't afford Cable TV. I know I can't afford a swimming pool. Why do I know this? Because I'd be spending more than I should if I added any of those items to my expenses. I'd not be able to put away 25% of my income into savings and investments if I spent money on stuff like that. You need a sharp dose of reality in your financial planning for the future.
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