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Termyn8or -> Not for Christmas - shopping - credit (12/8/2009 8:41:07 PM)
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OK, some may say I am a victim of credit. I have alot of debt, maybe 40K. This is due to trips to FL, buyng cars and paying the associated fines (I mean that literally), a few investments which have yet to pay off (well some of the stuff I was going to resell I decided to keep) and a few other things piled up. However I am able to make the payments, usually a few dollars over the minimum.
This is even though they seem to want to amortize in like 6-7 years. I'm not sure because I have had them so long, but I think there was a checkbox on some of the applications that said "Check here if you would like to accelerate your payment schedule to pay the balance faster", something to that effect. I may have checked the box.
I do seem to have enjoyed some very good rates over the years. I had one that was 6.9% for life. Untfortunately that meant the life of the bank. They got bought out and I read the new agreement. I considered opting out but their offer wasn't bad so I went for it.
At any rate (no pun intended this time) as of last month I had credit cards :
A $27,000, 8.65%, $470/month
B ~15,000, 17%, $220/month
C~2,400, >17%, $60/month
Now B got to that rate because literally it was a mail problem. I called and the guy said that he believes me but the terms are the terms, and if the account remains in good standing for six months they will lower the rate. That was the first time I've been late on anything in over fifteen years. But the rules are the rules. OK, the six months will come soon and I'll have a talk with them.
Now those figures don't include the piddly ones, but one of them was D. The limit on D is $22,000 and they just sent magic checks at 3.9% for a ½ a year. Now A, as of next year is going up to 12.9% "because of market conditions". Which means they need money of course. But the checks don't go up in January, they are for a full year. So I moved $21,000 of debt over to D from A at 2.9% for a year. That puts almost $200 a month in my pocket which can be used to pay the balance down a bit, or at least avoid increasing it.
But then we have C and A. C is really not a big thing, but it is a pain in the ass every month, and remember, no matter the balance the credit report is the credit report. They don't care why. So, now that I can get A to give 2.9% for a year I have two options. One is to eliminate C altogether and put the $60/month in my pocket, or to use the buying power of that card which has just been paid down by $21,000 to buy down B, which is now at the default rate.
But now what if I did both ? Paying down B does not put a proportional amount in my pocket in comparison to paying off C. But C is a drop in the bucket, so do them first and use whatever is left to buy down B might be the best way to go.
Understand that I usually never "shop", and only certain times I do it on credit. So the more money in my pocket will reduce the number of times I check my wallet and come up two friggin dollars for something and wind up using the card. Of course the cash will piss away. I never said I was superhuman. I'll probably take the family to dinner in a snazzy place, I don't do that much anymore at all because of this non-smoking shit. But I suppose I could put up with it for a time.
So now, if I use the 2.9% now I can chop B in half, puttin about $100/month in my pocket. Along with eliminating C. and the about $200/month I save now, this is substantial.
Both of these payments are coming due. C is due on the 19th and B on the 22nd. I have some time. And where Christmas comes in ? When you transfer money that way it counts as a payment. I don't do Christmas, but when it comes to giving gifts, I do. But we do it after Christmas. Get some deals. If not wait.
So my bill structure changes next month, but I save money every month for a year. At the end of next year the gravy train ends, I know that, but I think that was going to happen anyway in light of the increases many are probably seeing these days. "Market conditions" and such.
Now the only problem is to see if I actually have TWO checks for 2.9% for a year. I am pretty sure I do. Some of them might expire, but there's always the phone.
If I can make this move, or these moves, now is the time. Whether the checks expire or not, the time frame is until November next year so I am losing months of saving interest. But see I do believe that I could maybe eliminate B completely with the offer from A. Possibly that would be more to my advantage.
And no, I am not a victim of credit. I signed for that money and with any luck will pay it off. I can justify screwing the banks, saying that it is returning the favor, but that doesn't really wash. It took decades to build decent credit, I don't want to tear it down too hastily.
But then there is one looming factor as well. Sometime next year I will need a couple grand worth of eye surgery.
At least now you know why I'm crazy.
T
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