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).


Mama Youtz said...

My recomendation (along with what Dave Ramsey would tell you) is to bump up your emergency fund to 3-6 months of expenses, once your debt is paid off (we'll actually be doing 3-6 months of income instead of expenses, more money in the bank makes me feel better).



Great advice, Dina! I haven’t come up with an exact number goal for the emergency fund (it’s around $1000 now). I guess something like 6 months of living expenses for Cute Man and I. But in reality, I will be both building an emergency fund and saving up for a down payment on a house. I guess I should separate those two things so that I can monitor my progress towards those two goals. I will delineate the specifics once I *really* am out of debt, whether it’s soon or in December. Fingers crossed!

Crabby McSlacker said...

That would be great news! Fingers crossed.