First off, I have to say that I’m in love with our house. It’s everything and more we dreamed about during those long months of preparation. But man, does buying a home do a number on the finances. Since paying off my credit card debt and starting my method of using my rewards card for all my spending, I’ve loosened up on the day to day budgeting. It worked well for a while and was quite freeing. I felt I’d earned it. But now, with all the little things that come up both for myself and the house? I’m way off track. I have to come clean… Over the past few months both before and after the home purchase, I’ve been raiding my savings like there’s no tomorrow. It boils down to overspending – nothing huge, just inattention to the details, giving in to immediate gratification, and just plain impulse buying. It’s time to buckle down and pay attention!
Cute Man and I like to keep our finances separate. It’s not about trust, it’s about control. It’s just easier to keep track of one set of in and outflows and just negotiate the common expenses. This is what works for us. Now, with the house, we have had to realign who pays what and sorting out all that has really been a reality check. The bills! They’re killer! Savings, what’s that??? After the panic subsided, we came up with a plan that will keep us on track and allow us to continue saving a little bit, at least. As long as I keep a handle on my discretionary spending, I’ll be OK. I’m lucky as hell to still HAVE any discretionary spending money at all. It just has to remain a very finite amount if we’re to stay on track with our short and long term goals.
If I was able to keep up my debt repayment while working at the salon for peanuts per hour (with Cute Man’s major support!) I can do this. I have the incredible perk of being able to go home and enjoy the fruits of all this effort every single night. It is truly a wonderful thing to go home to our house every evening and spend time with Cute Man. It’s nice to have a tangible reminder of what we’re working toward – maintaining and building our happy life and future together.
Showing posts with label Credit Cards. Show all posts
Showing posts with label Credit Cards. Show all posts
Tuesday, September 21, 2010
Wednesday, December 16, 2009
Credit Card Declined? That and Amex Thinks I’m Dead
What a shock THAT was at the Starbucks this morning! Well, it turns out someone was having a ball at Walmart and Food Lion somewhere in South Carolina with my card. Sheesh! Good thing the folks at Chase caught that early and are taking care of the fraudulent charges.
It’s just annoying at this point. Cute Man (an authorized user) and I will have to wait until they send us a new cards in order to use them again. It’s just a minor crimp in my strategy of using the card for all purchases, building up reward points, and paying the balance each month. Then there are all the automatic withdrawals linked to that card that I’ll need to update when I get a new card number. Oh, well. A few minutes of my time to make those changes isn’t exactly a big deal.
But how did they get my card? Neither of our physical credit cards is missing so I’m thinking that the number was somehow hijacked and then a fake card was made. I mean, they used it at Walmart, so they probably needed an actual card, right? In any case, I’m hoping this is the end of it. We’ll get new cards next week, I’ll fill out the fraud paperwork, and that will be it (cross your fingers!)
In other news, I finally dealt with the mistake on one of my credit reports. One of my old credit cards was listing me as “deceased”. Yep, as in no longer among the living. I put in my request for an “investigation” which I find kind of funny in this case – how much investigating is necessary to prove I’m still breathing… I mean, I could be a pretty good eye-witness…
So I’m in pretty much in a “deal with stuff” kind of mood, which is actually quite contrary to my normal state. It’s crazy to see how dealing with this stuff really isn’t all that bad once I just go ahead and just do it already. It’s the dread that keeps me from dealing… This is of course all in the quest towards home ownership. Hopefully, with this credit snafu cleared up, we’ll be able to move forward with the home-buying process with NACA in January!
It’s just annoying at this point. Cute Man (an authorized user) and I will have to wait until they send us a new cards in order to use them again. It’s just a minor crimp in my strategy of using the card for all purchases, building up reward points, and paying the balance each month. Then there are all the automatic withdrawals linked to that card that I’ll need to update when I get a new card number. Oh, well. A few minutes of my time to make those changes isn’t exactly a big deal.
But how did they get my card? Neither of our physical credit cards is missing so I’m thinking that the number was somehow hijacked and then a fake card was made. I mean, they used it at Walmart, so they probably needed an actual card, right? In any case, I’m hoping this is the end of it. We’ll get new cards next week, I’ll fill out the fraud paperwork, and that will be it (cross your fingers!)
In other news, I finally dealt with the mistake on one of my credit reports. One of my old credit cards was listing me as “deceased”. Yep, as in no longer among the living. I put in my request for an “investigation” which I find kind of funny in this case – how much investigating is necessary to prove I’m still breathing… I mean, I could be a pretty good eye-witness…
So I’m in pretty much in a “deal with stuff” kind of mood, which is actually quite contrary to my normal state. It’s crazy to see how dealing with this stuff really isn’t all that bad once I just go ahead and just do it already. It’s the dread that keeps me from dealing… This is of course all in the quest towards home ownership. Hopefully, with this credit snafu cleared up, we’ll be able to move forward with the home-buying process with NACA in January!
Friday, August 28, 2009
Personal Finance?
I haven’t been writing much about this lately – I’ve been more into exploring intuitive eating. The latter is much more new to me so I guess there’s just more on my mind to talk about. As for personal finance, it’s honestly been on autopilot for awhile. I did a lot of work to get things sorted out and put some great systems in place. As a result, it requires far less attention and headspace from me most of the time.
My 401k contributions are automated and my ING savings transfers happen like clockwork on their own, too. I love this! Cute Man and I are gearing up to go into our house-hunting phase so saving is a big part of this. We need to demonstrate that we can save the difference between our current rent and anticipated mortgage for at least 3 months per our NACA program requirements. I’ve been doing this for awhile now, but CM is beginning this in earnest this month. Previously, his focus was credit card repayment, which he has rocked!
Another thing we’ve got sort of automated, is our vacationing! Say what you will about timeshares, but they cannot be beat for encouraging us to take a full week off. I had serious concerns about the wisdom of that purchase (mostly due to the poor reputations they have), but it has turned out really well. We just got back from our lovely vacation in Orlando, which did not break the bank. Having your own kitchen at a resort is a money saver for sure. Most of our cash went to transportation – we didn’t rent a car, but took shuttles and cabs instead. It probably cost us a bit more this way. I think next time a car would be good. Live and learn!
I’ve also streamlined my spending strategy. For the past few months I’ve been experimenting with a new system. I put everything onto my Amazon Chase Visa. I only use cash or my debit card when I have no choice. I wanted to see if I could smooth out my spending and not be hyper-conscious of what I have to spend paycheck to paycheck, constantly checking balances. I just use my “good judgment” that I have cultivated and buy what I want when I choose to. With the safety of a buffer of savings in the bank, I wanted to see if it would even out. So far, it has! I have not had to dip into saving to cover over-spending even once. This is a victory, for sure.
As long as I can live below my means (automated savings comes out first anyway), I am thrilled with this method. It takes out the stress of constant balance checking and I earn mad points that I can turn into $ to spend at Amazon. As a Kindle owner, this is golden. I have also redeemed them for a gas card that works at the station near my house, too. Very handy. Now that I don’t’ drive as much, I could feasibly not have to pay for my own gas again. Really. I can’t believe they’re basically giving me free money just for using the card for all my purchases. As someone who pays off my balance every month, it is a huge benefit because I’m not paying any interest charges.
In short, things are pretty smooth on the financial front. As I learned the painfully hard way, it’s not how much I earn that matters. It’s setting up my life so that it functions within the parameters of what’s coming in. As two people working at non-profits, CM and I do not make a whole lot, especially for living in an expensive city. We’ve just learned a thing or two about prioritizing what’s important to us and making hard choices. It’s good to know that we can have pretty much anything that we truly need or want – we just can’t have everything that we want. So, the former gets priority and the latter gets indulged within reason.
So now we’re looking into buying a house or condo. This is a whole new world to explore so I will probably be talking a lot about that and soliciting advice as we get into the thick of it. The rest will hopefully continue to take care of itself.
My 401k contributions are automated and my ING savings transfers happen like clockwork on their own, too. I love this! Cute Man and I are gearing up to go into our house-hunting phase so saving is a big part of this. We need to demonstrate that we can save the difference between our current rent and anticipated mortgage for at least 3 months per our NACA program requirements. I’ve been doing this for awhile now, but CM is beginning this in earnest this month. Previously, his focus was credit card repayment, which he has rocked!
Another thing we’ve got sort of automated, is our vacationing! Say what you will about timeshares, but they cannot be beat for encouraging us to take a full week off. I had serious concerns about the wisdom of that purchase (mostly due to the poor reputations they have), but it has turned out really well. We just got back from our lovely vacation in Orlando, which did not break the bank. Having your own kitchen at a resort is a money saver for sure. Most of our cash went to transportation – we didn’t rent a car, but took shuttles and cabs instead. It probably cost us a bit more this way. I think next time a car would be good. Live and learn!
I’ve also streamlined my spending strategy. For the past few months I’ve been experimenting with a new system. I put everything onto my Amazon Chase Visa. I only use cash or my debit card when I have no choice. I wanted to see if I could smooth out my spending and not be hyper-conscious of what I have to spend paycheck to paycheck, constantly checking balances. I just use my “good judgment” that I have cultivated and buy what I want when I choose to. With the safety of a buffer of savings in the bank, I wanted to see if it would even out. So far, it has! I have not had to dip into saving to cover over-spending even once. This is a victory, for sure.
As long as I can live below my means (automated savings comes out first anyway), I am thrilled with this method. It takes out the stress of constant balance checking and I earn mad points that I can turn into $ to spend at Amazon. As a Kindle owner, this is golden. I have also redeemed them for a gas card that works at the station near my house, too. Very handy. Now that I don’t’ drive as much, I could feasibly not have to pay for my own gas again. Really. I can’t believe they’re basically giving me free money just for using the card for all my purchases. As someone who pays off my balance every month, it is a huge benefit because I’m not paying any interest charges.
In short, things are pretty smooth on the financial front. As I learned the painfully hard way, it’s not how much I earn that matters. It’s setting up my life so that it functions within the parameters of what’s coming in. As two people working at non-profits, CM and I do not make a whole lot, especially for living in an expensive city. We’ve just learned a thing or two about prioritizing what’s important to us and making hard choices. It’s good to know that we can have pretty much anything that we truly need or want – we just can’t have everything that we want. So, the former gets priority and the latter gets indulged within reason.
So now we’re looking into buying a house or condo. This is a whole new world to explore so I will probably be talking a lot about that and soliciting advice as we get into the thick of it. The rest will hopefully continue to take care of itself.
Thursday, April 9, 2009
A Return to Using Credit
After 5 years without having a credit card (that worked – I was paying off a bunch of old ones), I have bitten the bullet and gotten a new one. Am I scared that I’ll return to my old ways and run up a huge balance? Hell, no. I’m not the same person I was back when I was wracking it up. Rest assured that since then, I’ve learned through the bitter pill of experience what NOT to do with a credit card.
So, if I was going along so well for the past 5 years without a card, why start now? Well, it’s really about convenience. I am super proud of the emergency fund I’m building but it’s not that helpful at the side of the road when your car breaks down. ING takes several days to send the money back to my checking account. Having access to a credit card would allow me to use it in emergency situations and then continue to pay off the balance at the end of the billing cycle using my savings. It just adds a buffer.
Another reason I chose to get a new card is the rewards. I got an Amazon card because I seem to be using their site a lot lately. And with my Kindle habit, rewards in the form of Amazon gift cards will be great. I will always be able to use them. I’ll use the card instead of my debit card to get rewards points but pay the balance each month. This will also allow me to smooth out my spending instead of focusing on what’s available with each new paycheck. I’m going to try to release the kung fu grip I have on each penny. By this I don’t mean I’m going to start spending like a madwoman, but rather, I’ll take the focus off tracking every single transaction every single day. I’m pretty obsessive, really. I will still reconcile my receipts, etc. but maybe not as often.
We’ll see if this turns out to work or if I really just need to track everything meticulously like I’ve learned I need to (at least for now) with my food. Like I’ve mentioned before, the two issues are very similar for me but I’m much further along in my relationship with money than in the one I have with food. I think I’m ready to trust myself a little more to make good choices with my money without artificially imposing stop points (I’ve run out of spending money for this pay period so I can’t get ___). Of course, I’m not really out of money – it’s just someplace else. This tactic has worked well for me but I’m hoping that I’m ready to take the training wheels off. If I start careening downhill and find the brakes are shot, I can put them back on. I’ve gone back to tracking my intake carefully and I’ll do it for however long it takes for me to gain control over it (if ever). I’m fine with that. But I feel in my gut that I’ve grown financially and can handle it.
So, if I was going along so well for the past 5 years without a card, why start now? Well, it’s really about convenience. I am super proud of the emergency fund I’m building but it’s not that helpful at the side of the road when your car breaks down. ING takes several days to send the money back to my checking account. Having access to a credit card would allow me to use it in emergency situations and then continue to pay off the balance at the end of the billing cycle using my savings. It just adds a buffer.
Another reason I chose to get a new card is the rewards. I got an Amazon card because I seem to be using their site a lot lately. And with my Kindle habit, rewards in the form of Amazon gift cards will be great. I will always be able to use them. I’ll use the card instead of my debit card to get rewards points but pay the balance each month. This will also allow me to smooth out my spending instead of focusing on what’s available with each new paycheck. I’m going to try to release the kung fu grip I have on each penny. By this I don’t mean I’m going to start spending like a madwoman, but rather, I’ll take the focus off tracking every single transaction every single day. I’m pretty obsessive, really. I will still reconcile my receipts, etc. but maybe not as often.
We’ll see if this turns out to work or if I really just need to track everything meticulously like I’ve learned I need to (at least for now) with my food. Like I’ve mentioned before, the two issues are very similar for me but I’m much further along in my relationship with money than in the one I have with food. I think I’m ready to trust myself a little more to make good choices with my money without artificially imposing stop points (I’ve run out of spending money for this pay period so I can’t get ___). Of course, I’m not really out of money – it’s just someplace else. This tactic has worked well for me but I’m hoping that I’m ready to take the training wheels off. If I start careening downhill and find the brakes are shot, I can put them back on. I’ve gone back to tracking my intake carefully and I’ll do it for however long it takes for me to gain control over it (if ever). I’m fine with that. But I feel in my gut that I’ve grown financially and can handle it.
Thursday, February 12, 2009
Tackling Credit Card Debt: How to Get Started
Yesterday, I got a very thoughtful question from a friend and reader of this blog:
To answer him, I pulled together some information I wish I had five years ago. Please add any other helpful hints you might have in the comments! Here is my response (edited slightly for reposting here):
In terms of strategy, I had none 5 years ago. I was at the end of my rope and just felt completely unknowledgeable and overwhelmed by my bills. I really didn't have a clue what to do. I turned to a non-profit credit counseling program which consolidated all of my cards into one payment that I made to them each month. They also got my interest rates reduced (to the 8-9% range or so). The only catch was that I paid them $20/month for them to do this for me. I was happy to do so because I was incredibly overwhelmed and it helped just to have the one bill to pay each month. The thought of it taking over 4 years was scary, but it felt good to have a plan. It was a hard transition. One of the terms of the agreement was that I had to completely stop using all cards and not apply for any new credit. That means I had to start actually living within my means and stay on top of what I was spending.
Since that time, I've learned a LOT. First, in terms of just learning the ins and outs of staying on top of my day to day finances so I wouldn't overdraft using my debit card (I had to start somewhere!) But in the last couple of years, I stumbled on the world of personal finance blogs and have learned so much I wish I'd known earlier.
I do not regret using the counseling service to consolidate my debt, but I wouldn't advocate it as the first option now. They really didn't do anything that you can't do yourself. I just didn't know enough and wasn't in the mental "place" to take those steps myself at that point. It is possible to call credit card companies to either request interest rate reductions or to work out a payment plan directly with them. To learn more about how to do stuff like that, check out The Simple Dollar and click on '31 days to fix your finances'. Day 25: Evaluating Your Expenses - Credit Cards, in particular, is a good primer on how to go about dealing with your cards. Also, check out his 'Recommended Reading' listing of books on the right side.
The best thing I can recommend is to check out the blogs (another good one is Get Rich Slowly) and maybe one or two books on the subject and just dive in. I am proof that people really can change – I went from someone with a total head-in-the-sand approach to finances, to a complete geek about it. I now find it fascinating and fun to talk about. I never would have imagined that!
But if all this seems like a huge overwhelming chore, there is nothing wrong with asking for help by way of consolidation. It's like paying someone to clean your house because it's worth the money to not have to deal. It was for me at the time I started this. But if you're willing to dig in and take a DIY approach, it certainly can be done. You pay with your time/attention rather than money. Either way, as I said before, I've become really into the whole thing and would be happy to help if you ever have questions, etc.
That’s all I got but please add further advice below. Thanks!
*Update: I just read a great A Step-by-Step Guide to Getting Your Credit Card Interest Rates Reduced over at The Simple Dollar. It's a great place to start.
Can I ask you - I saw on your blog (yes I'm an avid reader of it) that you went from 20K to 0!!! I have about 10k in cc debt... can i ask you what strategy you used?
To answer him, I pulled together some information I wish I had five years ago. Please add any other helpful hints you might have in the comments! Here is my response (edited slightly for reposting here):
In terms of strategy, I had none 5 years ago. I was at the end of my rope and just felt completely unknowledgeable and overwhelmed by my bills. I really didn't have a clue what to do. I turned to a non-profit credit counseling program which consolidated all of my cards into one payment that I made to them each month. They also got my interest rates reduced (to the 8-9% range or so). The only catch was that I paid them $20/month for them to do this for me. I was happy to do so because I was incredibly overwhelmed and it helped just to have the one bill to pay each month. The thought of it taking over 4 years was scary, but it felt good to have a plan. It was a hard transition. One of the terms of the agreement was that I had to completely stop using all cards and not apply for any new credit. That means I had to start actually living within my means and stay on top of what I was spending.
Since that time, I've learned a LOT. First, in terms of just learning the ins and outs of staying on top of my day to day finances so I wouldn't overdraft using my debit card (I had to start somewhere!) But in the last couple of years, I stumbled on the world of personal finance blogs and have learned so much I wish I'd known earlier.
I do not regret using the counseling service to consolidate my debt, but I wouldn't advocate it as the first option now. They really didn't do anything that you can't do yourself. I just didn't know enough and wasn't in the mental "place" to take those steps myself at that point. It is possible to call credit card companies to either request interest rate reductions or to work out a payment plan directly with them. To learn more about how to do stuff like that, check out The Simple Dollar and click on '31 days to fix your finances'. Day 25: Evaluating Your Expenses - Credit Cards, in particular, is a good primer on how to go about dealing with your cards. Also, check out his 'Recommended Reading' listing of books on the right side.
The best thing I can recommend is to check out the blogs (another good one is Get Rich Slowly) and maybe one or two books on the subject and just dive in. I am proof that people really can change – I went from someone with a total head-in-the-sand approach to finances, to a complete geek about it. I now find it fascinating and fun to talk about. I never would have imagined that!
But if all this seems like a huge overwhelming chore, there is nothing wrong with asking for help by way of consolidation. It's like paying someone to clean your house because it's worth the money to not have to deal. It was for me at the time I started this. But if you're willing to dig in and take a DIY approach, it certainly can be done. You pay with your time/attention rather than money. Either way, as I said before, I've become really into the whole thing and would be happy to help if you ever have questions, etc.
That’s all I got but please add further advice below. Thanks!
*Update: I just read a great A Step-by-Step Guide to Getting Your Credit Card Interest Rates Reduced over at The Simple Dollar. It's a great place to start.
Thursday, September 11, 2008
No Credit for Me (at Least for Now)
The funniest thing happened last night – for a min, I actually forgot my budget and started shopping before thinking about it. I’ve been meaning to pick up some new makeup and I popped into CVS (I had planned to go to Sephora, but it was an impulse thing). I went and picked out a few things. Then, I remembered. I’m pretty much out of cash till payday (tomorrow) and I wasn’t going into my slush savings for makeup. Oops! Glad I remembered BEFORE the purchase.
This is a good exercise in impulse control. Before I buckled down and started to clean up my act with credit cards 4 years ago, I would just buy stuff (on credit) when I wanted it with no heed to when I got paid or how much I really had. This is inconceivable to me now, but I know that’s just what I did.
Since finishing off with my debt payments, I’ve had a feeling of having more money than I used to. It’s true and it’s not. For me to not go crazy, it’s important to have an automated savings program that takes out the cash on payday so I don’t see it in my balance. Otherwise, I’ll find a million and one reasons to spend it. That’s why I prefer to still operate down to the very bottom of my checking account balance each pay period. Telling myself that I’m keeping $100 as a base level doesn’t work. I’ve tried. I find something “very important” to spend the money on. I need to let myself go down almost to zero because I’ll do that anyway. I might as well have already taken out my savings first. And since I’m so methodical with my tracking, I have not bounced anything in recent memory (knock wood!)
Having to stop and think about a purchase is a good habit. I do have a slush savings account at B of A (about $100 right now) that I use for little overages, if I want. Transferring funds to checking is really easy and I can do it several times a month with no fee. But it’s a stopping point – is this purchase something I have to have right now? Is it worth taking it out of savings? Sometimes, it is and I just do it. But other times, I realize that the purchase is something that really could wait. And often, having to wait a few days allows me to reevaluate whether I really need it or not. Or, I wind up making a more informed choice. In this case, I’ll just wait for the weekend and maybe go to where I really wanted to get my makeup anyway, Sephora.
This experience is reinforcing my decision to not try to dive into the realm of using a rewards credit card any time soon. The security of continuing to follow a plan that works for me is enough. It far outweighs the risk of falling into old bad habits. That little mental hiccup last night reminded me how easy it really is.
This is a good exercise in impulse control. Before I buckled down and started to clean up my act with credit cards 4 years ago, I would just buy stuff (on credit) when I wanted it with no heed to when I got paid or how much I really had. This is inconceivable to me now, but I know that’s just what I did.
Since finishing off with my debt payments, I’ve had a feeling of having more money than I used to. It’s true and it’s not. For me to not go crazy, it’s important to have an automated savings program that takes out the cash on payday so I don’t see it in my balance. Otherwise, I’ll find a million and one reasons to spend it. That’s why I prefer to still operate down to the very bottom of my checking account balance each pay period. Telling myself that I’m keeping $100 as a base level doesn’t work. I’ve tried. I find something “very important” to spend the money on. I need to let myself go down almost to zero because I’ll do that anyway. I might as well have already taken out my savings first. And since I’m so methodical with my tracking, I have not bounced anything in recent memory (knock wood!)
Having to stop and think about a purchase is a good habit. I do have a slush savings account at B of A (about $100 right now) that I use for little overages, if I want. Transferring funds to checking is really easy and I can do it several times a month with no fee. But it’s a stopping point – is this purchase something I have to have right now? Is it worth taking it out of savings? Sometimes, it is and I just do it. But other times, I realize that the purchase is something that really could wait. And often, having to wait a few days allows me to reevaluate whether I really need it or not. Or, I wind up making a more informed choice. In this case, I’ll just wait for the weekend and maybe go to where I really wanted to get my makeup anyway, Sephora.
This experience is reinforcing my decision to not try to dive into the realm of using a rewards credit card any time soon. The security of continuing to follow a plan that works for me is enough. It far outweighs the risk of falling into old bad habits. That little mental hiccup last night reminded me how easy it really is.
Wednesday, July 23, 2008
The Debt is Dead
It’s official. I am now free of all credit card debt. I got the letter last night from AMEX stating that all the remaining interest on the account (about $4000) has been forgiven and my balance is now zero. I am in shock. Four years of consistent forward movement towards this goal carries a hell of a lot of inertia. Now what? I do not want to lose momentum and fall back into destructive behavior. I am looking to walk the fine line of making sure that I give myself space to enjoy this success without piddling away the gains I’ve made.
The plan: Use a chunk of what I would have paid towards debt next month on my trip to VA Beach for the Half Marathon. Having a buffer for that makes me feel a lot more comfortable. After that, I’m rolling that money into savings in my ING account. I will not fall victim to lifestyle inflation. I hope that I can keep myself in check and save up a substantial amount towards one day buying a house. That is a worthwhile goal I can sink my teeth into.
But for now, for today, I’m content to bask in the glow of this accomplishment and just feel good. I’m entitled!
The plan: Use a chunk of what I would have paid towards debt next month on my trip to VA Beach for the Half Marathon. Having a buffer for that makes me feel a lot more comfortable. After that, I’m rolling that money into savings in my ING account. I will not fall victim to lifestyle inflation. I hope that I can keep myself in check and save up a substantial amount towards one day buying a house. That is a worthwhile goal I can sink my teeth into.
But for now, for today, I’m content to bask in the glow of this accomplishment and just feel good. I’m entitled!
Monday, June 30, 2008
Will I Jinx It?
I have gone back and forth about even mentioning this, but it’s really on my mind so I just have to let it out. Long story short, American Express MAY be forgiving the interest on my debt to them. In other words, they have a program for people on debt management plans like mine in which they forgive the interest once the total amount of the original debt is paid.
What does that mean for me? Well, by my count, I’ve already paid them over $6500, when the original balance was about $6100. So… if my debt management plan is eligible for this interest forgiveness waiver, it would be amazing. In essence, my debt elimination project would be completed. I am about to pay the last $300+ off my Citibank card with my July disbursement, leaving just the American Express balance of $4000 – not small change. But it turns out that is all interest that may be forgiven.
I am waiting to hear back – I’m told I should receive a response in 7-10 days… I am definitely not one to count my chickens but the mere possibility that I may be DONE with paying all this back is just incredible. I guess I need to start thinking about a plan for when the debt is gone, especially since there’s suddenly the potential for that time to be soon. I do not want to fall into the lifestyle inflation trap…
I guess I’ll keep you posted on this. I will just have to contain myself until such time as there’s something really to celebrate (or not).
What does that mean for me? Well, by my count, I’ve already paid them over $6500, when the original balance was about $6100. So… if my debt management plan is eligible for this interest forgiveness waiver, it would be amazing. In essence, my debt elimination project would be completed. I am about to pay the last $300+ off my Citibank card with my July disbursement, leaving just the American Express balance of $4000 – not small change. But it turns out that is all interest that may be forgiven.
I am waiting to hear back – I’m told I should receive a response in 7-10 days… I am definitely not one to count my chickens but the mere possibility that I may be DONE with paying all this back is just incredible. I guess I need to start thinking about a plan for when the debt is gone, especially since there’s suddenly the potential for that time to be soon. I do not want to fall into the lifestyle inflation trap…
I guess I’ll keep you posted on this. I will just have to contain myself until such time as there’s something really to celebrate (or not).
Thursday, May 29, 2008
Taking Care of Me
In my effort to “take care of myself”, I am off to a good start. I had originally planned to run today but am feeling more like doing yoga. So that’s what I’m going to do. The good thing about my achievable running pace is that I can still hang on Saturdays even when I don’t run two other times during the week. I just need to stop stressing about it. If I’m feeling more like yoga, I should just do yoga. The new Tranquil Space studio is nice and big. It’s truly lovely and I’m genuinely looking forward to going there today. I will make an effort to get my running schedule back on track next week.
As for the eating plan, I’m sticking with what I set out to do. I am eating a lot more fruits and vegetables and a lot less “dry carbs”. The Vitatops are a good quick and filling breakfast; they don’t seem to spike my cravings for sweets. I’ve treated myself to small bits of dark chocolate in the evenings to have something to look forward to. So far, so good.
I may be able to start sharing some of what I’ve learned about health and wellness with my coworkers. I just applied to be on a new committee on that topic that is currently forming. I figure that at least I’ll get to know some people outside of my department, if not do some actual good.
In other news, things are barreling along on the debt reduction front as well. I am securely on track to eliminating it by the end of 2008!!!!
And to top it all off, I ordered a new pair of running shoes yesterday AND I have a couple pairs of sandals on their way, too! Hopefully, my quest for good comfy shoes will be fulfilled.
As for the eating plan, I’m sticking with what I set out to do. I am eating a lot more fruits and vegetables and a lot less “dry carbs”. The Vitatops are a good quick and filling breakfast; they don’t seem to spike my cravings for sweets. I’ve treated myself to small bits of dark chocolate in the evenings to have something to look forward to. So far, so good.
I may be able to start sharing some of what I’ve learned about health and wellness with my coworkers. I just applied to be on a new committee on that topic that is currently forming. I figure that at least I’ll get to know some people outside of my department, if not do some actual good.
In other news, things are barreling along on the debt reduction front as well. I am securely on track to eliminating it by the end of 2008!!!!
And to top it all off, I ordered a new pair of running shoes yesterday AND I have a couple pairs of sandals on their way, too! Hopefully, my quest for good comfy shoes will be fulfilled.
Wednesday, May 21, 2008
Credit Card Payoff Progress Report
I mentioned a couple of posts ago my plan to accelerate my debt reduction. I am happy to report that I did indeed pay off that one card with a check written out for $945. THAT felt fantastic. I also went ahead and paid the remaining $63 on another card so it’s down to just the two, totaling about $5400.
I did not, however, make good on my pledge to replenish my E-fund with some of the stimulus money. I spent quite a bit on food/spa treatments in Vegas and getting my hair done yesterday. I’m fine with these decisions and it felt good just to splurge a little for a change. Although it wasn’t the original plan, I am content knowing I didn’t go into any debt to do it.
So now the E-fund is down to about $350. Not great but not a disaster, either. I’ve decided to up my biweekly ING transfers to $200 (from $100). I will stockpile the money there so it’s accessible in case of an emergency but then drain it down to $500 periodically to make accelerated payments on the cards.
I did not, however, make good on my pledge to replenish my E-fund with some of the stimulus money. I spent quite a bit on food/spa treatments in Vegas and getting my hair done yesterday. I’m fine with these decisions and it felt good just to splurge a little for a change. Although it wasn’t the original plan, I am content knowing I didn’t go into any debt to do it.
So now the E-fund is down to about $350. Not great but not a disaster, either. I’ve decided to up my biweekly ING transfers to $200 (from $100). I will stockpile the money there so it’s accessible in case of an emergency but then drain it down to $500 periodically to make accelerated payments on the cards.
Monday, May 12, 2008
Progress Feels GOOD
I am so incredibly excited about some real tangible progress I’m about to make on my debt reduction. I am paying off one card (balance: $945.00) in one fell swoop. The idea came about with the whole stimulus package dealio. I expect to get that moolah next Friday, but I’m superstitious about counting my chickens and all that. So I just raided the E-fund and wrote out the check! I have not stuck it in the mail yet because it takes a few days for money to come back over from ING (I requested the transfer last Friday). The timing is all so important because the bill is due on the 20th. It should all work out if I mail it tomorrow or Wed. When (or if) the tax money does come through, I’ll transfer some of it back over to the E-fund to bring it back closer to my minimum comfort level of $1000. Then, it can build itself slowly again.
I also will pay off another card (balance $63) when my next paycheck comes. That will leave me with just two cards left. One with about $500 and the other with $5000. Between my regularly scheduled consolidation payments, my extra $100/paycheck payments, and additional snowflaking, my goal is to be debt free by the start of 2009. Wouldn’t THAT be fantastic? Again, not counting those chickens but you gotta dream big, ya know?
I also will pay off another card (balance $63) when my next paycheck comes. That will leave me with just two cards left. One with about $500 and the other with $5000. Between my regularly scheduled consolidation payments, my extra $100/paycheck payments, and additional snowflaking, my goal is to be debt free by the start of 2009. Wouldn’t THAT be fantastic? Again, not counting those chickens but you gotta dream big, ya know?
Friday, April 11, 2008
Commitment
You may have noticed that I took a week off. I just needed some space to readjust. I’m still on track but a little bit more on autopilot than I’d like. I see the signs of flagging motivation and I need to revive my commitment to my weight loss goals. Debt reduction is barreling forward pretty much on its own. The only major thing on that front that I am gearing up for using a hefty chunk of my tax rebate to pay off one of my credit cards completely. I plan to use about $400 of the rebate plus $500 of my ING savings to just knock that one off. That will reduce the emergency fund back down to $1000, which is totally fine. I will probably continue to periodically use it that way to go towards my debt, never allowing it to be below $1000. After the debt is eliminated, I will allow that fund to grow indefinitely, so that it is a true emergency fund. Once I get to that point, I’ll figure out exactly how big I want it to be before starting on saving for a house.
On the other hand, I just haven’t felt really inspired to exercise. I am excited about it in theory, but in practice, I’ve been blowing it off. Not good. No more. I must get back to my goal of 4 days of activity per week. 1 day of yoga so far so I’m not completely batting zero. I plan on doing a couch to 5k run this evening which will bring it to at least 2.
In terms of my eating habits, I have been allowing too much junk to creep in. I’ve been tracking my intake (for the most part – I had a couple head in the sand days last weekend) but not making the best choices. I need to remember that feeding myself good food makes me feel much better than the crap that tastes good in the moment but lacks good nutrition.
So that’s where I am – past the “motivated” stage and in to the commitment zone. I’m so glad to have so many great support systems in place to help me. Checking in with the Ducks every day always gives me something new to think about, joining back up with the roadrunners will give me some structure to my fitness program, getting fresh produced delivered from Washington's Green Grocer keeps great food options in the house, and going to yoga at Tranquil Space keeps me loose and calm. Not to mention my fabulously supportive and inspiring Cute Man. He is on track and doing well! I have the tools, time to use them!
On the other hand, I just haven’t felt really inspired to exercise. I am excited about it in theory, but in practice, I’ve been blowing it off. Not good. No more. I must get back to my goal of 4 days of activity per week. 1 day of yoga so far so I’m not completely batting zero. I plan on doing a couch to 5k run this evening which will bring it to at least 2.
In terms of my eating habits, I have been allowing too much junk to creep in. I’ve been tracking my intake (for the most part – I had a couple head in the sand days last weekend) but not making the best choices. I need to remember that feeding myself good food makes me feel much better than the crap that tastes good in the moment but lacks good nutrition.
So that’s where I am – past the “motivated” stage and in to the commitment zone. I’m so glad to have so many great support systems in place to help me. Checking in with the Ducks every day always gives me something new to think about, joining back up with the roadrunners will give me some structure to my fitness program, getting fresh produced delivered from Washington's Green Grocer keeps great food options in the house, and going to yoga at Tranquil Space keeps me loose and calm. Not to mention my fabulously supportive and inspiring Cute Man. He is on track and doing well! I have the tools, time to use them!
Thursday, March 13, 2008
Credit Cards: Good or Bad?
Short answer is neither. I had a great discussion with one of the Ducks about this (I wonder if I can use first names or initials? Hmm… I guess I’ll ask!) And how funny to check in over at The Simple Dollar and see that Trent has posted about this same exact thing!
My plan for using credit in the future is to get all the benefits and none of the drawbacks. Once I’ve eliminated my balance, I’m going to get one really good rewards card that earns rewards that I can truly use and benefit from. I’ll use that instead of my check card to get rewards but track as if it was coming out of my account. That way, I can pay it off at the end of the month. I have spent so much needless money on credit card interest, I never want to pay a cent again, if I can help it. I don’t have much fear that I will spend more than I would otherwise because I use my check card for 95% of all my spending as it is – I have to keep track of my spending in the abstract anyway. Cash goes like water for me so I certainly would never go to an all-cash system.
This doesn’t mean that I’m going to be super rigid, though. Even now, I allow myself wiggle room. I have a B of A “keep the change” saving account (not the one with the $1000 – that’s ING) that gets $75 of regular transfers throughout the month, the rounded change, plus any money left over in my account when my next check clears. I use that like a slush fund – if I want to buy something that I can’t quite afford, I think about it hard and then if I really really want it, I just transfer over from savings. I use that account like a credit card. The transfers are instant since they’re at the same bank as my checking account (unlike from ING which takes a few days – a good thing to help prevent me from frivolously raiding the E-fund).
So basically, I’d rather use my own savings as backup than carry a balance on a card. It’s like a prepaid credit card except the money’s earning me interest when it’s just sitting and waiting instead of the other way around. That’s not to say that I think having a bit of a balance on a card is “bad”. It’s just all about figuring out your comfort level and working within that. Finding some way to keep on top of it and keeping it within a range that feels safe to you is what it’s all about.
My plan for using credit in the future is to get all the benefits and none of the drawbacks. Once I’ve eliminated my balance, I’m going to get one really good rewards card that earns rewards that I can truly use and benefit from. I’ll use that instead of my check card to get rewards but track as if it was coming out of my account. That way, I can pay it off at the end of the month. I have spent so much needless money on credit card interest, I never want to pay a cent again, if I can help it. I don’t have much fear that I will spend more than I would otherwise because I use my check card for 95% of all my spending as it is – I have to keep track of my spending in the abstract anyway. Cash goes like water for me so I certainly would never go to an all-cash system.
This doesn’t mean that I’m going to be super rigid, though. Even now, I allow myself wiggle room. I have a B of A “keep the change” saving account (not the one with the $1000 – that’s ING) that gets $75 of regular transfers throughout the month, the rounded change, plus any money left over in my account when my next check clears. I use that like a slush fund – if I want to buy something that I can’t quite afford, I think about it hard and then if I really really want it, I just transfer over from savings. I use that account like a credit card. The transfers are instant since they’re at the same bank as my checking account (unlike from ING which takes a few days – a good thing to help prevent me from frivolously raiding the E-fund).
So basically, I’d rather use my own savings as backup than carry a balance on a card. It’s like a prepaid credit card except the money’s earning me interest when it’s just sitting and waiting instead of the other way around. That’s not to say that I think having a bit of a balance on a card is “bad”. It’s just all about figuring out your comfort level and working within that. Finding some way to keep on top of it and keeping it within a range that feels safe to you is what it’s all about.
Subscribe to:
Posts (Atom)