Gardening backwards...

[tcbofade]

Ok, so I might have screwed up...but I may have done something smart as well....can't decide...

As some of you will remember, I got all excited about a 0% credit card from my local CU back in March...I did pay balance transfer fees, but with zero percent until December, it was worth it.

Until the first statement showed up, and they were charging me 22% interest on the balance transfers.

Needless to say, I flipped out.  Wrote a nasty letter to the customer service address.

No response.

Called and spoke to a young man who was going to look into it and call me back the next day.

No response.

Finally visited the local branch, sat down with the branch manager and told her where she could put her credit card.

She called me back that afternoon and promised to fix it for me.

It took her a few days, but NOW the entire balance is at zero percent for 12 months.  (it was only supposed to be the BT's for nine months...so I won't complain...)

Then, of course, she asked...what ELSE can we do for you?

They offered to refinance either of my car loans...one is at six percent, the other is at eight percent, and I don't think that they can beat those rates, so I took a pass on that one...

...then we started discussing a signature loan....

I took a $2,500 loan out at 12%....and used it to pay off various credit cards that were well over 20%....

When all of the payments post, (just mailed them yesterday) MY util will drop from 63% to 55% (ish), and DW's util will drop from 52% to 45%.

Monthly net reduction of minimum payment = $127.00

I'm hoping DW's score will go up when her reported util drops below 50%....

[Anonymous]

It could be smart or a screw up, that depends on you

Now your monthly payments have dropped $127 a month, I think what determines your end result will be what you do with that extra 127.  If you use it to pay down your balances on cards, then it is very smart   If you spend it or just run your balances up again... well you know

but still you won a battle with your CU that you would of most likely not won with a larger company, so congrats

[FrugalRican]

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@tcbofade wrote:

Monthly net reduction of minimum payment = $127.00

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This was all I had to read in order to to understand that it is a smart financial decision, regardless of AAOA, history, etc, etc, etc.

Use this extra money VERY wisely. Don't think of it as a reduction, think of it as an ADDITION of payment to the next card you want to bring to 0.

[tcbofade]

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@FrugalRican wrote:

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@tcbofade wrote:

Monthly net reduction of minimum payment = $127.00

---

This was all I had to read in order to to understand that it is a smart financial decision, regardless of AAOA, history, etc, etc, etc.

Use this extra money VERY wisely. Don't think of it as a reduction, think of it as an ADDITION of payment to the next card you want to bring to 0.

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Split decision.  As some of you pointed out in January, our total monthly miniumum payments were over $900.

As of last week, they were over $1,000.

I intend to continue to pay $1,000 per month, so just about half of that $127 will be added back into July's credit card payments.

Sheesh.  It's easy to dig a hole when one isn't paying attention...

[RockinRay]

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@tcbofade wrote:

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@FrugalRican wrote:

---

@tcbofade wrote:

Monthly net reduction of minimum payment = $127.00

---

This was all I had to read in order to to understand that it is a smart financial decision, regardless of AAOA, history, etc, etc, etc.

Use this extra money VERY wisely. Don't think of it as a reduction, think of it as an ADDITION of payment to the next card you want to bring to 0.

---

Split decision.  As some of you pointed out in January, our total monthly miniumum payments were over $900.

As of last week, they were over $1,000.

I intend to continue to pay $1,000 per month, so just about half of that $127 will be added back into July's credit card payments.

Sheesh.  It's easy to dig a hole when one isn't paying attention...

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Yes and even harder to get out of once dug! I think you are making the right moves here though. Keep it up - you will get there!

We all have faith in you.

[Revelate]

Meh, fiscally smart, and probably a short-term FICO boost too trading the revolving debt for what I assume is an installment loan.   

I fail to see any downside really, it may not have been gardening, but not doing something smart for the sake of gardening is, well, dumb .  You did just fine... there's tons more to both FICO and life than AAoA.

[tcbofade]

Thanks for the encouragement...seems like a long road to hoe yet...but we're werkin' on it. 

[thebanjoman]

If you combine this news with your other thread about zero percent financing on some appliances, sounds like you've just about freed up $200 a month in minimum payments.  That's getting to be some serious firepower freed up! plus dropping the interest rate, plus killing a few maxed out or balance reporting cards...Sounds like you made a great move, and your balances should start to really drop on some of those cards.

edit: I'm curious, how many cards these days have balances? and how many (or possibly more appropriately, how few) of those have an interest rate anymore?

[tcbofade]

Ummm.  I'm on the wrong PC to answer that question...

Top of my head, 24 cards still have balances...7 of them are at zero percent.

8 cards are paid off, 5 more will be when the checks I mailed out the other day hit...

We're werkin' on it. 

[tcbofade]

...no fair combining threads.... 

We've got another zero percent purchase on that same card...so once we're done paying for the appliances, we start paying for two beds and a television set that we purchased last year when we moved....

I'll keep making the same payment, so no gain there...but we'll get there.