02-24-2013 05:05 PM
Do you have any money in a savings account? Yes, but I wont touch it. Do you participate in your employer's 401k? No, i'm thinking about enrolling this year but im too scared of the stock market.If you had to pay cash for that trip, would you do it? Probably not. Kinda spur of the moment thing. These are questions you do not have to answer on this board but I'm throwing them out there for you to think about. You have been opening and charging on a lot of new accounts, two of which are charging you interest which in all probability negates any rewards you may be getting.
I was in debt for years. Some of it was out of my control but the reality is most of it was my own doing. Life is going to throw us curve balls, save money to prepare. Anything can happen that may make it impossible to pay off the 0% interest cards before the time expires. I can't even remember most of things I bought that got me so into debt. I do not have wonderful investments to show for it. There are many emotional components to money management. It wasn't until I got brutally honest with myself about my spending habits that I began to change. Sometimes I take one step forward and two steps back but I continue on with my plan.
Last month I overspent on things I didn't need. I haven't done that in a long time but I will not give up or berate myself. The money has to come from somewhere so I will be eating lots of pasta and sandwiches at home for a while. In the past I would just continue charging at my normal rate and tell myself I'll have the money to pay for it later. Later very rarely comes.
I'm in the frame of mind now to clear this debt over a period of 8-12 months. If I have to pay interest i'll have to eat it and keep all of my accounts in good standing. My spending has been not out of control but not really taking everything into consideration the past couple of months. I see where I am at now and this is a learning experience for me as in the past I was never accustomed to lenders being this generous to me and I by all means do not want to take advantage of this or screw it up. I've created a plan to use my AMEX strictly on Bills/Grocieries and let little recurring charges go on the other bankcards. Meanwhile making big payments on my 2 big balances. The 0% cards I have set payments on and they are attainable.
I was not trying to put you on the spot - just wanted to give you and anyone else reading a different perspective. You are already doing more than I ever did by asking for advice and trying to formulate a plan. I didn't realize how bad it had become for me until two of my three lenders took AA against me and raised my interest rates so high I could barely make the minimum payments. It made me angry but the anger fueled my desire to get my act together so it was a scary turning point for me.
Oh your cool man I appreciate any advice given. I can be hard-headed at times if it's something I REALLY want but lately i've learned to step back and think first before spending. It's helped me alot. What I really want now is to clear this PSECU debt over time and my other cards as planned. Its like a hobby to me now im focused and ready to do this!
I surpised myself because I didn't think I would have it in me to post this and put my debt out there but I feel this lil community is tight knit here and we all are here to help each other and I love that.
Family sticks together good and bad...you're in the right place to ask for help
02-24-2013 05:05 PM
For a lot of people it works to cut the credit cards, mentally that way you dont have access that easily.I would advice just to use your debit card until you pay down all your debt. I know you might be missing points in your Amex card. But what about you charge and charge and then don't have the money to pif. Just my two cents.
Seriously getting into debt is not joke.
I don't think that will be an issue. If I have to cut these cards up I might as well not have them at all, it doesn't fix a thing if you have no self-control. My problem was most of this debt piled up and I never really got the whole picture with most of it being deferred/0% offers. I personally dont feel like I have a out of control spending problem none of my cards are maxed out just a couple have large balances that need some attention. I'll prove that to myself by paying this off this year. If I cant, then yea I may need to let go of them.
02-24-2013 07:00 PM
Also, perhaps you could look into some ways of getting some extra income.
I've never been in debt, but I have found that when I really want something, I try and figure out a way to get the money to pay for it. It's wonderfully motivating. When I was in college, I worked freelance as a writer and made money to buy a PS3 and a nice laptop. I've fixed computers, taught kids, graded papers and a bunch of other things to make some extra cash. The amounts involved are small, but that's the secret: when you have a fixed goal in mind, even $50 seems like a big deal, which is not the case if you're just looking at the money as a regular job.
Perhaps you have some stuff you can sell on eBay.. it's amazing what people pay for what you consider crap. I recently sold a four year old iPod for $50. It was dinged and dented, and the battery barely lasted 4 hours, but someone was willing to buy it. Naturally I was honest in my listing, and I started it off at $0.99. I expected it to go for $20, but got more than twice that. And I only listed it on a whim; I was about to throw it out/give it away for free.
The point is, you may have sources of income that you never considered. You say you have a truck. I don't know if it's a flatbed, but if it is, maybe you can help people move stuff on weekends. I know there are times when I've wished I had a truck to move something too big for my car, but too small to justify a U-haul.
Spend some time thinking about it, you never know what might come up. You have nothing to lose, and at worst, you'll have a nice appreciation of things you can and cannot do that may be monetizable (MBA buzzword claptrap!)
02-24-2013 07:03 PM
How you accumulated so much debt? I bet 50% were frivolous items.
I spent $1,300 to fly out to Denver to see my Broncos play the Ravens. Endzone seat, hotel, rental car. Was AWESOME!!! (even tho we lost )
As a lifeloing Chiefs fan living in Denver, words cannot express how much I loved that game.
02-24-2013 07:06 PM
02-24-2013 07:11 PM
02-24-2013 07:18 PM
I've created a plan to use my AMEX strictly on Bills/Grocieries and let little recurring charges go on the other bankcards.
You would do better to put these expenses on a card that is earning some cashback for it. It may not be much, but every little bit is good, right?
The only hidden tradelines I know of are Bill Me Later, and either the JP Morgan Select or Palladium. Chase and American Express business cards do not show up on personal credit reports and you don't exactly need a business to get them. You would get 6-12 months of no interest depending on which card you applied for.
The Chase Slate with no balance transfer fees and no interest could also be a good option. You just have to be able to deal with having what is possibly the ugliest thing in existence.
02-24-2013 07:27 PM
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