http://www.destroydebt.com/blogs/rhitter94.html The Plan to Live Life www.destroydebt.com Sat, 07 Nov 2009 04:13:34 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/blogs/rhitter94/2375-my-plan-to-live-debtfree-progress-report-november-2009.html http://www.destroydebt.com/blogs/rhitter94/2375-my-plan-to-live-debtfree-progress-report-november-2009.html Sat, 07 Nov 2009 04:13:34 GMT Here is the current status: Total Credit Card Limit = $7700.00 / Current Balance Owed = $7535.00 / Current % Debt = 97% Yes, the current balance owed is up, however there were some hiccups.  One being my health insurance has not sent my EOB this month to get reimbursed for my co...
Total Credit Card Limit = $7700.00 / Current Balance Owed = $7535.00 / Current % Debt = 97%

Yes, the current balance owed is up, however there were some hiccups.  One being my health insurance has not sent my EOB this month to get reimbursed for my co-pays, I have had to use my cards for gas and food.  I called yesterday to have them fax it over, which they did not.  I will need to follow thru next week.  However, with that amount reimbursed, I can put half of it towards this debt.  Another hiccup is that my boyfriend accidently uploaded a Mal-ware program and I had to purchase a Mal-Ware remover, because the program I had did not catch it.  NOTE:  Do NOT use Trend... they are the worst.  And the final hiccup, I did not pay attention to one of the cards was due the annual fee - $59.00 (OUCH!!!!!!!)  Oh well -- this tells me a few things...

1) I need to be more dilligence

2) I need to monitor my cards better

3) I need to revisit my budget and see where my downfalls are.

Not a good month, but I am not discouraged.  I am still hopefull.  I have faith that I will suceed.  I am not going to berate myself.  I refuse to do that.  I got myself into this mess - I can get out of it!]]> http://www.destroydebt.com/blogs/rhitter94/2359-my-plan-to-live-debtfree-progress-report-october-2009.html http://www.destroydebt.com/blogs/rhitter94/2359-my-plan-to-live-debtfree-progress-report-october-2009.html Fri, 09 Oct 2009 11:20:57 GMT Greetings from Debt Land!!!! Well, the month of September saw some small progress and minor set backs, but still we are steady as she goes.  I've decided that I am going to post my statistics from this point forward so that I can track it better. Total Credit Card Limit = $7700.00 / Curre...
Well, the month of September saw some small progress and minor set backs, but still we are steady as she goes.  I've decided that I am going to post my statistics from this point forward so that I can track it better.

Total Credit Card Limit = $7700.00 / Current Balance Owed = $7455.00 / Current % Debt = 97%

Looking at it this way is daunting.  I feel sometimes that I am not making any progress, but I know that I am.  I look at the individual cards and I see progress.   Some cards have lower percentages than others, but progress is being made.  It will take time, patience and a strong will.  The only card I used this month was my Target card and that was to get some necessities for my family.  Other than that - I did not use any of my cards.

What keeps me on the straight and narrow is the knowledge that I will be debt free, and will plan on staying that way.  I can't wait to pay off  these credit card so that I can close some of them.  I can hardly wait to turn the tables on these credit card companies and be able to use the card and then pay the balance in full when my statement comes in.  I can hardly wait to see what the numbers will be in November.

 

 ]]> http://www.destroydebt.com/blogs/rhitter94/2344-my-plan-to-live-debtfree-progress-report-september-2009.html http://www.destroydebt.com/blogs/rhitter94/2344-my-plan-to-live-debtfree-progress-report-september-2009.html Wed, 09 Sep 2009 07:58:17 GMT About two weeks ago, my life turned upside down.  I am on my own again, with a single income and a child to support.  I began to stress as money is extremely tight and there is still my debt to deal with.  I began to panic because I was so afraid that I would fall right back into the ...
Good news - I haven't.  And I have not given up on my dream to become debt free.  It is just going to take longer and which means I must have stronger resistance.  And not be proud to accept hand-outs.  What also helps is that I have been doing a lot of research of credit card debt in this economy.  Reading Suze Orman and Jean Chatzky.  Listening to Dave Ramsey.  Doing a ton of research methods and crunching numbers, which is something I am good at.  Asking advice from friends.  Doing some soul searching.

So you might ask, what is the new plan.  Here it is.

1) List all my credit card debts with interest rates, statement dates, due dates and minimum payments.

2) Prioritize them in order I want to pay them off and set goal for each quarter.

3) Determine a fixed amount to pay based upon minimum payments plus an additional amount.

4) Compare pay schedule against due dates and statement dates.

5) Set up schedule to pay card upon RECEIPT of statement.

6) Use the Snowball method to pay each down.

7) DO NOT USE CARDS UNLESS IT IS AN EMERGENCY!  (sorry for the yelling... :D)

In addition:

8) Upon tax refund time, apply 25% of refund to debt and place remaining into savings.

9) Re-review progress in 12 months.

And finally.... say it with me... DO NOT USE CARDS UNLESS IT IS AN EMERGENCY!]]> http://www.destroydebt.com/blogs/rhitter94/2336-suffering-a-major-setback.html http://www.destroydebt.com/blogs/rhitter94/2336-suffering-a-major-setback.html Thu, 27 Aug 2009 11:55:21 GMT Gentle readers - I am at a crossroads.  I find myself in the undesirable position of searching for a place to live.  With the amount of debt I have, I may have to concede to doing a debt settlement program, and take a major hit on my credit score, so that I can save money. I am confiden...
I am confident that I can handle my debts.  I just need to be dilligent.  My dilemma is that I may need to use my credit cards and THAT is not part of the plan.  Do I remain diligent, continuing to NOT use them and keep working the plan?  Or do I cave in and use the credit (what little I have) to get some items?

Decisions - decisions - such heavy decisions.

Upon thinking and pondering my current situation, here is my plan -

1) Re-calibrate the plan to pay the minimum + $5 to each card EXCEPT the one with the highest interest where I would double the extra payment, minumum + $10.

2) Contact several creditor and explain situation and ask for interest only payments for 3 months.

3) Make a list of items needed and seek charitable donations, look to craiglists for free stuff.

4) Start a saving plan for rainy days... (or should we say, thunderstorms!)

5) Re-affirm my vow to be debt free one day.

Wish me luck and hope to see all around the boards.]]> http://www.destroydebt.com/blogs/rhitter94/2331-each-persons-debt-is-as-unique-as-they-are.html http://www.destroydebt.com/blogs/rhitter94/2331-each-persons-debt-is-as-unique-as-they-are.html Tue, 11 Aug 2009 09:36:29 GMT I have been a member of this site for quite some time.  I log on regularly to read the forums and there is one thing that is true.  We are all in debt and are looking for ways to get out.  That is one of the reasons why I joined this site.  So that I can share my experience and h...
Here is my story.

I currently have way too many credit cards, a personal loan at a hideous interest rate (stupid move), a car loan and a 401K loan (really stupid move).  Yes - I had a momentary loss in judgement.  But I woke up and saw that I was not accomplishing of my goals and that I was my own worst enemy.  So that is why I had started my blog, detailing my plan.  I fnd it therapeutic to not only write it, but to go back and read it.  It reminds me of my mistakes and the progress I make.  I hope that it will inspire others to take action and have faith that we can get out of debt and win this war.  So I am constantly researching and reading.  I used to get inspiration from all you reader and posters.  I used to find support and encouragement here.  But the recent posters have been too embarrassed to truly put it out there and develop a network of support. 

So I challenge all those that read this - please, share your story.  Let us help you.  We are all in this together.  As the old saying goes - United we stand, divided we fall.  I would be happy to share my thoughts with anyone who asks.  Let us unite and work together to destroy our debt.  Be an inspiration to the next person, because they might really need that friend.  I know I do]]> http://www.destroydebt.com/blogs/rhitter94/2326-my-plan-to-live-debtfree-progress-report-august-2009.html http://www.destroydebt.com/blogs/rhitter94/2326-my-plan-to-live-debtfree-progress-report-august-2009.html Mon, 10 Aug 2009 04:55:49 GMT I have been working my plan very dilligently, even though I have had some setbacks.  I recently needed to use one of my cards to fix my computer (it got very sick...) and so that set me back.  However, the good news was that I was able to pay off half the amount I charged this month and wi...
1) I have began thinking about my credit situation more carefully.

2) I have better spending habits

3) I have more control of my debt.

Example - my daughter needed a new back for school and they were have a sale for the model she wanted at Target.  Her father agreed to pay for it, however he would not have the money until after the sale.  So I used my Target card to get it and when I received the money from him, I went online and made an immediate payment, so it would not affect my next months balance.

It is little steps like this I am taking to keep my debt down.  And I feel better for it.  I have approximately 24 months to go on the plan, but I am feeling very good about my current progress.]]> http://www.destroydebt.com/blogs/rhitter94/2322-my-plan-to-live-debtfree-step-7-you-want-me-to-do-what.html http://www.destroydebt.com/blogs/rhitter94/2322-my-plan-to-live-debtfree-step-7-you-want-me-to-do-what.html Thu, 06 Aug 2009 07:54:40 GMT Okay - so I get a call back from someone after I have filled out the form.  And I discuss my goals. 1) To pay off my credit accounts in 2 years. 2) To reduce the amount of cards. 3) To NOT hurt my credit rating. So, I received a call from a very nice young man.  He explained th...
1) To pay off my credit accounts in 2 years.

2) To reduce the amount of cards.

3) To NOT hurt my credit rating.

So, I received a call from a very nice young man.  He explained that I would be a good candidate for debt settlement.  The program would require that I set up an escrow account, to build up a fund for them to use to negotiate the debt down.  For the debt settlement company to do this, I would have to be around 180 days late.  And then it takes some time to do the negotiations.  I would be in the program around 3 years.

Excuse me??  Being late on my payments would allow the credit card companies to do the following:

1) Charge my account with overlimit fees and late charges.

2) To deny me future credit.

3) Hurt my credit rating.

Okay, these do not match my goals.  Why would I go with this plan?  It is a giant step back.  I have worked hard to repair my credit.  With my current plan that I have worked on diligently, even with minor setbacks, I am on track to get rid of my credit card debt by the end of 2011.  And then after that I can work on getting rid of the personal loan.

To the nice young man I spoke with today, thank you, but no thank you.

 ]]> http://www.destroydebt.com/blogs/rhitter94/2319-my-plan-to-live-debtfree-step-6-revenge-of-the-consumer.html http://www.destroydebt.com/blogs/rhitter94/2319-my-plan-to-live-debtfree-step-6-revenge-of-the-consumer.html Sun, 02 Aug 2009 05:12:30 GMT Wow... that is all I can say.  I got the copy of the terms and conditions of the credit card company that hiked my interest rate.  Not only did they rase the rate (dem rotten bums!), BUT they made it retroactive to 1/28/2009 (dem dirty rotten bums!) Take a deep breath!!  Did I get an...
Take a deep breath!!  Did I get angry?  Yes.  Did I get steaming mad to which I had a stroke and subject to my family to this?  No.  I remembered an old saying - Don't Get Mad - Get Even.  So the question is how does one get even in today's economic envirornment where the credit card companies are hurting us because they know that they are going to be forced to play nice?  We play their game.

1) We use their cards for LITTLE items, and then pay-off the charges along with your payment plan.  Example - my newspaper is charged to this card.  I pay that amount as soon as it hits my account in ADDITION to the amount my plan is set.  I am using the credit, but still not paying the freaking charges.

2) Pay the credit card bill when it ARRIVES!  Not a day before the due date, because your grace period may expire.

3) Continue to monitor and challenge yourself to be disciplined in NOT using the card.

4) FINALLY - when the debt is gone - consider what card to keep and one to cancel.  Upon cancellation, send them a 'love' letter to them detailing your dissatisfaction of their business dealings which in turn made you decide to not do business with them any longer.

If they can send us a letter telling us because our use of THEIR credit is not to their satisfaction, then we have the right to say, we don't like your tems.  We can take our business elsewhere.

And I would like to end this blog post with another saying - What Goes Around - Comes Around!  Watch out for Karma!]]> http://www.destroydebt.com/blogs/rhitter94/2313-my-plan-to-live-debtfree-step-5-dealing-with-setbacks.html http://www.destroydebt.com/blogs/rhitter94/2313-my-plan-to-live-debtfree-step-5-dealing-with-setbacks.html Fri, 17 Jul 2009 02:50:46 GMT Riddle me this, gentle reader.  How in earth can I get out of debt if my credit card company keeps jacking up my interest rate and charging me overlimit fees?  (Yes they did it again)  Does one (a) get mad?  (b) get even?  (c) demand an explanation? or (d) request ...
Let's discuss all the options.

Option A - Get mad!  - Okay - this is our initial reaction.  But think, does it really affect change.  Yes, it makes us feel better, but still does not affect change.

Option B - Get even!  - How are we going to get even with them?  Don't use their card?  Cancel the account?  Sure, it sounds great, but we still owe the debt.  Again, who is the enemy?  That's right - WE are.  Never forget that, even though it seems that they are at this particular moment.

Option C - Demand an explanation! - This sounds like the answer, but you are only going to get angrier because you are too upset to listen.  And then we are back at Option A and we have already determined that this would not affect change.

Option D - Request a rationale.  The key word or root of a word is ration.  If you approach this with a rationale manner, then you will be able to understand the credit card company's response and reply back.  We are in control of our emotions and are better equiped to handle this set-back.

So in this ever constant battle - if we deal with set backs in a calm and rationale manner, we can get past this hurdle and continue tackling our debt.  Steady as she goes!]]> http://www.destroydebt.com/blogs/rhitter94/2292-my-plan-to-live-debtfree-step-4-evaluating-and-adjusting.html http://www.destroydebt.com/blogs/rhitter94/2292-my-plan-to-live-debtfree-step-4-evaluating-and-adjusting.html Wed, 01 Jul 2009 06:36:04 GMT What???  Adjust the plan?  Why not just stick to it?  Here is why gentle reader.  I got the shock of my life when one of my credit cards interest rates jumped nearly 10 points!!! Yes, you read that correctly.  It went from 12.9% APR to 22.9% in ONE month.  When I saw th... 10 points!!! Yes, you read that correctly.  It went from 12.9% APR to 22.9% in ONE month.  When I saw that, I proceeded to do what my sister and I laughingly refer to the 'Sebastian' syndrome (named for the scene in Disney's 'Little Mermaid' in which Sebastian the crab's jaw drops as he observes Ariel singing to an unconscious Prince Eric). But I digress.

So, what is the adjustment?  Each month I review all my statements and sort again and again by the highest interest rate, and continue to pay what I can.  Still sticking with the original plan.  I will get there, regardless of any curveballs they throw my way.

A special note - it is VERY important to read each and every piece of mail the credit cards send you.  If you are confused, CALL THEM!  You have right to ask for clarification.  It is our right.  We don't have to like the terms, but we have the right to information and to UNDERSTAND that information.

Like I have said, knowledge is power.  Commitment to the plan is key, but so is adjusting when needed.  Continue to evaluate your progress and adjust where needed and IF needed.  We will all get there.

More progress reports to come.]]>