http://www.destroydebt.com/blogs/rhitter94.html The Plan to Live Life www.destroydebt.com Sun, 11 Apr 2010 04:35:22 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/blogs/rhitter94/2430-my-plan-to-live-debtfree-progress-report-april-2010.html http://www.destroydebt.com/blogs/rhitter94/2430-my-plan-to-live-debtfree-progress-report-april-2010.html Sun, 11 Apr 2010 04:35:22 GMT Total Credit Card Debt = $7900.00 / Current Balance Owed = $7481.35 / Current % Debt = 94.70% Finally - some progress! It feels good to finally these numbers go down. The plan is working and it provides great incentive to remain diligent. Of note, Phase I of the plan is complete and the big bad loa...
Finally - some progress! It feels good to finally these numbers go down. The plan is working and it provides great incentive to remain diligent. Of note, Phase I of the plan is complete and the big bad loan with the super-duper ridiculous interest is gone. Sing with me...

Ding dong - the loan is paid, the loan is paid! Ding dong - the dreaded loan is paid!

Now onto two Phase II - tackling the credit cards. There are a lot of great resources out there on the internet, but the best tool I have found is a credit card calculator that I found on CNN's Money website. (http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp) It is easy to use with only two steps.

Step 1 - Enter your credit card information: For this, you will need to pull out all your recent credit card statements (or if you are like me, look them up online) and write down all your balances and current interest rates. I have them entered in a spreadsheet, along with the statement dates, which now is easier to track because of the new credit card law. After you have done that, plug in that information. I rounded my interest rates up for easier data entry.

Step 2 - Choose a plan: This step allows you to chose a plan by using three methods to pay off the cards or as I like to call them, three strategies.

Minimum payment (boo - hiss) - this is the strategy that most of us are doing due to the recent economy. However, this strategy will cost more in the end because you will pay more interest as opposed to the amount you would pay if one of the other strategies are applied.

Fixed payments - This strategy I like to call, "steady as she goes" due to this is the same amount you will pay throughout the plan, no matter what. What is great about this, is that you can reviewing all your statements and reviewing your budget, you can realistically set a fixed amount to tackle this debt. You can add more, but never less.

Debt-free deadline - This is a tricky one to describe and the most difficult to follow. It can be as aggressive as one can handle. This strategy is hard to follow, but you can fall behind and slip down a slippery slope, paying only minimum payments. If you chose this plan, play around with the time frames to see how the payments work out.

After you have chosen a plan or strategy, copy and paste it to a word or spreadsheet document. Print it out and place it where you can see it daily for motivation and inspiration. Find a quote that will ties into your goals, or better yet, a Bible verse to inspire you. I've said it before, and I will continue to say it again - we can do this. We just need have faith and the debt will go away.]]> http://www.destroydebt.com/blogs/rhitter94/2428-my-plan-to-live-debtfree-progress-report-march-2010.html http://www.destroydebt.com/blogs/rhitter94/2428-my-plan-to-live-debtfree-progress-report-march-2010.html Thu, 11 Mar 2010 09:59:36 GMT Total Credit Card Debt = $7900.00 / Current Balance Owed = $7624.21 / Current % Debt = 96.51% The credit limit is higher and the debt percentage is higher.  However, the limit increase came at a time when I had an emergency, and no cash, so I used the extra limit.  But I did n...
The credit limit is higher and the debt percentage is higher.  However, the limit increase came at a time when I had an emergency, and no cash, so I used the extra limit.  But I did not increase my debt ratio too badly, and that I feel good about.  As I continue to nickel and dime this down, I feel good about my progress.  I am not going to let this get me down.  What good would it do me?  It would make me more depressed.  I prefer to think about this as a challenge.  And with the new credit card laws that just went into effect, one needs to be more cautious and diligent.  I noticed on one of my card, my rate increase AGAIN, just before the credit laws went into effect.  Of course, they are going to try and get you before these went into effect.  UGH!!!!!  Gotta hand it to them.  They are working the loopholes to their advantage.  It is going to be nice when I get rid of the debt.

 ]]> http://www.destroydebt.com/blogs/rhitter94/2417-my-plan-to-live-debtfree-progress-report-february-2010.html http://www.destroydebt.com/blogs/rhitter94/2417-my-plan-to-live-debtfree-progress-report-february-2010.html Sat, 06 Feb 2010 09:04:29 GMT Total Credit Card Limit = $7700.00 / Current Balance Owed = $7365.82 / Current % Debt = 95.66% Oh wow... this looks better.  Thank you Uncle Sam!  I am really glad to see the progress.  I received my federal tax return and was able to put a little down on my highest interest card.&nb...
Oh wow... this looks better.  Thank you Uncle Sam!  I am really glad to see the progress.  I received my federal tax return and was able to put a little down on my highest interest card.  And I was able to put a little into my savings.  Unfortunately, I had to buy a bus pass for my daughter and so I was not able to do what I wanted to do with my refund.  However, I do not consider this a set back.  I consider it a reminder to be extra careful and plan for those rainy days!  So while I am carefully working on my debt, I am working on my rainy day fund.  It is all about balance.

My next step is to request my annual credit report and review it for inconsistencies.  I believe that some of the historical stuff will be dropping off.  And once I can get my debt ratio down, my credit will be in great shape.  Time and perseverance.  Steady as a rock.]]> http://www.destroydebt.com/blogs/rhitter94/2410-my-plan-to-live-debtfree-tax-time-2010.html http://www.destroydebt.com/blogs/rhitter94/2410-my-plan-to-live-debtfree-tax-time-2010.html Sat, 23 Jan 2010 08:01:45 GMT Hello dear readers to a special edition of my blog.  Well, it is that wonderful time of the year, and yes, I am being somewhat sarcastic.  First of all, let's have a show of hands for those who had to file a state tax return for California.  Dear fellow Californians - I feel your pain...
Okay, seriously, part of this is my fault because I did not read the tax bulletins I received.  Nor did I adjust my withholdings.  See what happens when you get lazy and comfortable.  The point that I am making is that we cannot afford to get comfortable or lazy.  It will cost you.  Read your bulletins and any literature that will impact your financial profile.  It is the key to the success of becoming debt-free.  There are plenty of resources out there.  We can do this!

On a sweeter note, my federal tax return looks more promising, and so, I will be able to knock down some of my debt and put some in savings.  It would be foolish for me to apply ALL of it towards my debt being that I don't have any savings.  So I am going to start building my savings, while working on getting my debt down.  So if it means that I don't have cable television for 6 months, so be it!  If it means that I give up my BlackBerry (sniff sniff), so be it!  Hey, I gave up Starbucks!  So, things are looking better and better!]]> http://www.destroydebt.com/blogs/rhitter94/2402-playing-the-credit-card-game.html http://www.destroydebt.com/blogs/rhitter94/2402-playing-the-credit-card-game.html Thu, 07 Jan 2010 09:32:21 GMT For those that follow my blog knows that I am waging war with these credit card companies.  Today I had an 'A-ha!' moment.  It hit me while I was working on my debt diet plan.  On some of my cards I had enrolled in Account Protection plans.  If you don't know what ...
Now you may ask WHY I had these plans?  The protection is nice, but it only last for so long.  The ONLY reason why I enrolled in these plans was to keep the cards active while I work on getting rid of the debt.  If my budget allows for it, I simply add that amount to my payment and send 1/2 right away, and the second half two weeks later.  If not, then I apply the normal payment is the same manner and when the budget allows for it, attack the balance as agressively as I can.

Well, that is all for now.]]> http://www.destroydebt.com/blogs/rhitter94/2401-my-plan-to-live-debtfree-progress-report-january-2010.html http://www.destroydebt.com/blogs/rhitter94/2401-my-plan-to-live-debtfree-progress-report-january-2010.html Tue, 05 Jan 2010 04:42:35 GMT Total Credit Card Limit = $7700.00 / Current Balance Owed = $7506.89 / Current % Debt = 97.49% Happy New Year!!  As in going with the traditions that comes along with each new year, I am going on a diet.  A Debt Diet.  I am going to whittle away my debt this year.  I am going to...
Happy New Year!!  As in going with the traditions that comes along with each new year, I am going on a diet.  A Debt Diet.  I am going to whittle away my debt this year.  I am going to get that percentage down to 75%.  I am going to control my spending.  I am going to live within my means.  I am going to raise that credit score.  The best part of this time of the year is that I get a free credit report.  YEAH!!   I get those and review each and every one of them.  Then I start making a list of things that need to be disputed or I feel should drop off.  It is a challenging process, but it is needed.

A side note, balance is up due to for some unforseen expenditures, but this will settle down after this month.  My debt ratio will be higher next month because some of my deferred finance charges is going to added to some of my accounts.  Oh well.  I tried to get them paid off, but my ex (and that is part of why he is the ex) would overspend, which in turn, caused me to overspend.

So lessons learned.  Keep my money my own.  Pay my bills as quickly as possible, and remain dilligent.]]> http://www.destroydebt.com/blogs/rhitter94/2397-whats-in-your-wallet-unfortunately-capital-one.html http://www.destroydebt.com/blogs/rhitter94/2397-whats-in-your-wallet-unfortunately-capital-one.html Sun, 20 Dec 2009 07:06:23 GMT I have to laugh about this.  I got a call from Capital One the other night in regards to the following provision for the upcoming federal law regarding credit cards that will go into effect February. -Unless the consumer has asked for an over-limit fee, the creditors can't charge the consumer ...
-Unless the consumer has asked for an over-limit fee, the creditors can't charge the consumer for it.

They wanted to know if I wanted th 'overlimit' protection of only being charged $29 as opposed to the standard $39 that these arrogant idiots charged me twice because they had jacked up my interest rate and my finance charge put me over the limit.  No thank you... as I have stopped using my Capital One card completely (except to charge my newspaper and I include that in my payment).

Furthermore, I defintely will be verifying that they are applying my payment to balance that these jerks are applying the jacked up interest rate to.  Oh yeah, and I expect them to lower my credit limit as I pay the balance down, or known as 'chasing the balance'.  And that is why I cut up the card and THREW the pieces away!  And if they send me a new one, the same thing will happen until these balances are ZERO, and then I can call them and tell them where they can go.

What is sad about this, Capital One used to be one the good guys, but now it is all about greed.  I won't miss that card - not one bit!]]> http://www.destroydebt.com/blogs/rhitter94/2392-my-plan-to-live-debtfree-progress-report-december-2009.html http://www.destroydebt.com/blogs/rhitter94/2392-my-plan-to-live-debtfree-progress-report-december-2009.html Thu, 03 Dec 2009 11:11:21 GMT Total Credit Card Limit = $7700.00 / Current Balance Owed = $7485.02 / Current % Debt = 97.21% Yeah, the current balance is down! Not by much, but it still a victory for me.  VERY little usage on the cards!  I am feeling very encouraged.  I did a drastic step recently, and left my ca...
Yeah, the current balance is down! Not by much, but it still a victory for me.  VERY little usage on the cards!  I am feeling very encouraged.  I did a drastic step recently, and left my cards with my sister to hold on for me.  I have decided that when I am done paying my Capital One cards, I am going to cancel all but one of my cards and apply for a low interest card.  My balances may go up next month, due to moving into my own place and I had to use one of my cards to purchase necessities for the apartment, but I get a discount on my rent and will be able to pay it down.  Another bonus... TAX RETURNS!!!  The plan is to pay the following:

1) Put 30% towards monies owed to my sister

2) Put 30% towards highest interest card

3) Put 30% into savings account

4) Pay myself 10%

This sounds good to me.  As always, I need to do the following:

1) I need to be more dilligence

2) I need to monitor my cards better

3) I need to keep re-visiting my budget and see where my downfalls are.

As my sister said, with time and perserverance, the debt will go away.]]> 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 = 97.86% 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 = 97.86%

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 / Current B...
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 = 96.82%

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.

 

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