May Plastic Pinch Update
Here’s the stats on my ugly load of credit card debt and the very little progress I have made in the short term of paying it off, yet much more progress on the long term cost of it. I got some credit line increases and some APR decreases this month which helps reduce the finance charges. Now if I push higher payments to these so that more will go to the principle besides just paying that minimum to cover the finance charge and nearly nothing of the balance.
| Credit Cards | Balance | Credit Line | APR |
|---|---|---|---|
| Bank of America | $4,320.40 | $5,500.00 | 17.24% |
| Associates | $1,336.89 | $1,700.00 | 18.99% |
| Citi Dividend | $4,757.72 | $8,700.00 | 9.90% |
| Zales | $1,144.49 | $5,000.00 | 9.90% |
| Totals: | $11,559.50 | $20,900.00 | |
| Debt-to-Credit | 55.31% | Change | 0.95% |
I am considering opening a new credit line to transfer my now HIGHEST rate credit card to a 0% for 15 months. By making a bigger payment to it that should be blown away in less than that time and all with not paying any more finance charges. The unsafe side is if I don’t pay it off in time then the interest accrues from the start and that would hurt. I would like to at the least pay off one smaller account this year so I can beef up payments on the next smallest account. There has also been talk about me getting a second part time job to earn some extra income to go towards paying off debt. I have some hurdles to get through here in June because the car insurance bill is coming and there is no budget for our anniversary either. Goodbye emergency fund?
First, start saving for your car insurance right now. If it is coming up next month, start saving weekly for it. After that, start saving monthly for next year. Open another savings or checking account to keep it safe if you have to. Since it’s coming up, shop around for insurance, it doesn’t hurt.
Second, get your wife some flowers, a box of chocolates and a card, then sit around and do something you both enjoy that evening (like watch a movie, or play Twister). Don’t touch your emergency fund to celebrate anniversary, you’ve got about 60 more of them you can splurge on later in life.
Money will be ’saved’ for the car insurance as in set aside because I know the bill is coming this next month. I did shop around for other places and didn’t notice much difference on the rates.
My wife doesn’t do the flower thing she wants pretty expensive name brand materialistic things that really don’t matter. I am in a bottleneck and end up pretending to own these things to give to her. Her wants become my debt because I don’t have that kind of money. If the evening could be very simplistic I would like that more but if she doesn’t get the things she wants, she will go get them anyway out of spite. It kills me that this is how it is right now, but I love her and put her before myself. I think this is what is constantly keeping us from having the lifestyle she would like to have. The second job for extra income wasn’t exactly my idea either.
You should speak to a marriage counselor. You are in high interest debt and worse, is your spending behavior changing? Is she aware of all of this? Does she read your blog? Is she happy forcing you to take a second job (is she also getting a second job?) to provide what you describe as materialistic things that do not matter?
It sounds like some good honest communication is in order here. Working yourself to death isn’t the answer.
I have read your blog with interest since it first appeared on the No Credit Needed Network. It was apparent from the first few posts that while you may love your wife very much, the two of you don’t seem to communicate well, particularly about money. The fact that you and your wife have separate finances is a big red flag to me.
I second Chris’ suggestion that you and your wife start communicating about money and goals for your marriage at the very least, and perhaps pursue counseling. The two of you seem not to be working from the same book, let alone being on the same page.
Put your marriage first, not your wife. Be the strong one and lead. You have an obligation to your future selves and any children you might bring into your family not to be carrying 11,559.50 in your credit card debt alone.
I appreciate that putting yourself out there so honestly and publically is difficult. Thanks for being brave enough to post about your experiences. I wish you the best of luck in getting out of debt!
I agree. “Put your marriage first, not your wife.” Having six children I know.
Congrats on continuing to pay down your debt!