Credit Card Debt Report June 2009 Plus Income And Expenses

Hello-

Time for another credit card debt report.  Time just flies by so fast.  And the credit card balances go down so slowly.  I can see why the promises of bankruptcy and debt settlement are so appealing.  They promise to have you debt free in months and not years like it takes when you pay it off on your own.

I’ve looked into debt settlement but not bankruptcy.  I would not qualify for debt settlement because I can keep up with my credit card payments for now anyways.

My income went up almost $900 from last month which was a nice welcome surprise.  It’s nice to get a bunch of $200+ checks from so many companies each month.  Now if only I could get them up to $300 and $400 a month from each company, that would double my income and I could pay off my debts faster.

Freelance/web development income for May 2009 was $5700. Up $878 from April.

Expenses were $5195.  April expenses were $5585 so we did better here this month but we are still in the red from the month before when we spent more than we made.  Hard to get out of debt when that happens.

It’s not easy knowing that your income and expenses can fluctuate each month because you work for yourself but I would not have it any other way.  I do not like having a boss at all. I like having the freedom of being able to see all my kids games without missing one due to work.

Now let’s see what my credit card debt looks like this month.

USAA $1,776.12
AT&T Universal Card $8,223.18
Discover Card $8,883.78
Bank Of America $15,275.45
Chase $13,219.96

Chase sent me a nice letter saying I could skip a payment this month if I wanted to.  How nice and thoughtful of them.  Yes, we’ll still charge you about $150 a month in finance charges on your $13k balance but sure go ahead and skip a payment.  We’re here to help you!

Baloney!

So I sent them a nice payment of $300.

So total credit card debt for June 2009 is $47378.49

Total credit card debt as of June 3rd, 2009: $47378.49

Total credit card debt as of May 1st, 2009: $47925.74

Total credit card debt as of April 4th, 2009: $48064.93

Difference of $547.25

Total credit card debt started with: $62124 Feb 2008

Total credit card debt paid off: $14745.51

And now let’s take  a look at my other debts.

$7712 IRS Tax Debt, paid off $1000.  IRS approved my payment plan and it starts June 28th. $250 a month until it’s paid off.

$7713.58 Auto Loan – Original balance $11,000. Made 2 payments so far, 46 to go…I hate car payments.

And then the student loans whatever they are.  Around $38,000.

So may be close to owing under a hundred grand now…better than owing over a hundred grand…

That’s all for today.

Have a great day!

-Adam

The Credit Blogger

Credit Card Debt Report April 2009 Plus Income And Expenses

Hello-

It’s time for the credit card debt report for this month.  Last month I mentioned that I had to buy a new used card since my 94 Camry was on its last leg.  I went ahead and found a good deal on an 05 Camry for $11,000 of which I paid $3000 cash from a whole life insurance policy I have and borrowed the rest from my credit union at a rate of 5.4% for 4 years.

So add that debt now to my list.  Oh joy.  And also last month I talked about having to pay almost $7,000 in taxes.  Now that number is almost $9,000.  Yikes! Guess I’ll be making monthly payments to the IRS for years to come too. I have $2,000 in savings I can make for my first payment on April 15th, tax day, and then start making payments.  Lesson learned from all this is that if you are self employed, you have to make quarterly payments to the tax man.

All that said, here is my credit card debt report for the month of April 2009:

Bank Of America: $15,643.42

Discover Card: $9,167.42

USAA: $905.47

AT&T Universal Card: $8,796.74

Chase: $13,551.88

Total credit card debt as of April 4th, 2009: $48064.93

Total credit card debt as of March 2009: $49,186.32

Difference of $1121.39, did better than last month where balances only went down about $700.

Total credit card debt started with: $62124 Feb 2008

Total credit card debt paid off: $14,059.

My monthly income for the month of March was just a hair under $5,000 and my expenses were about $4,200.  That leaves me with a small margin of about $800 to help pay down debt.  I liked Jan better when my income was over $7,000.

I’ll keep working on building out new domains, promoting the ones I already have and just getting more content out there to generate more income so I can pay off my credit card debt and get my own house.

That’s all for now.

Thanks for reading,

Adam

The Credit Blogger

P.S. There’s a new debt book on late night TV called Debt Rescue, it looks eerily similar to Debt Cures because it talks about how you can eliminate debt overnight and how you can get free money from the government.  I’ll try and do a review of it when I get my copy.

Credit Card Debt Report March 2009

Hello-

My how time flies when you are having fun.  It’s already March and many new year’s resolutions are either long gone and forgotten or you’ve already done something about them.  I’m still concentrating on getting my credit card debt paid off.  Had a couple of setbacks this past month though.

I started doing my taxes and found that I have to pay about $7,000 in taxes for 2008.  Ouch.  Since I am self employed, I am supposed to be sending in tax payments in each quarter which are estimates because the government cannot wait for its money so it can start spending it like crazy, hundreds of billions at a time.

And then my 94 Camry is on its last leg so I am in the market for a new used car.  I got pre-approved for an $8k auto loan at 5.4% and I withdrew $4100 from my whole life insurance policy so I have a budget of $12,000 for a car.

However, I don’t want to spend that much for a car if I can help it.  I can use some of the insurance money to go to my tax bill.

So I may have to cut back on my aggressive debt cutting practices so I can get a car and start paying on my tax bill.

In credit card news, my Discover Card now has a balance and they lowered my interest rate to 9.24%.  They offered me a balance transfer offer of 5.9% until Feb 2010 with a fee of 4% with a max of $150. Ouch.  It seems like just a couple months ago the fee was 3% with a max of $100.  They have to make their money somehow right?

I went onto a balance transfer offer calculator to determine if this was a good deal.  You can run your own numbers here: http://www.creditcards.com/calculators/balance-transfer.php

It said I would save almost $500 during the balance transfer offer net of the $150 balance transfer fee and would then save about $21 a month in interest after the offer was over.  So I transfered my USAA balance at 12.5% to Discover and now I have about $900 left to pay on my USAA card and get that one paid off.

So here’s the credit card debt report for March 2009:

USAA $908.48
Discover $9497.11
Bank Of America $15851.51
Chase $13746.62
AT&T Universal Card $9182.60

total credit card debt as of March 2009: $49,186.32

total credit card debt as of Feb 2009: $49,869.27

difference from Feb to March: $682.95 8-(

That’s not a lot.

I need to start making some more money so I can pay off my debts faster.  And then I’ll have a bigger tax bill next year.

Have a safe and happy spring break.

-Adam

The Credit Blogger

Discover Credit Card balance December 2008: $0!

Hello-

I just finished sending in a payment for the remainder of my Discover credit card balance to get it paid off.  Yippee!

Here’s the scheduled payment:

The posting date is December 25th, so I guess it’s a Christmas present to myself.

In Feb of this year, the balance was almost $6,000.

I just finished making my payments for the year for all my other credit cards trying to get my balance under $50,000 for the year and let’s tally the numbers:

Discover Card: $0!!!!!!!

USAA: $10,247

ATT Universal Crappy Card: $10, 342

Chase: $14,109

Bank Of America: $16,089

Total outstanding credit card debt end of December 2008: $50,787 :o(

Guess I didn’t make as many payments as I thought I did.

At least I got one credit card totally paid off.

If you haven’t already heard, there were some new regulations passed down to the banks and credit card companies that are supposed to make it easier on us consumers.  The biggest one I like is the no more universal default clause.  I hated this one.  If you make a late payment on one card, all your other cards could penalize you.  How fair is that?

The other one that I liked was the applying your credit card payments to the highest interest balance first.  I have several low balance transfer offers for the life of the balance transfer on some of my cards and they charge 3 or 4% interest and other balances on that same card for 18% interest and the payments I make go to the lowest interest rate offer so I pay much more in interest while I have that outstanding balance.

I just want to get these cards paid off so I can stop flushing money down the drain to these greedy credit card companies in interest charges.

Total credit card debt started with: $62124 Feb 2008

Total credit card debt now (December 2008): $50,787.

Total credit card debt paid off this year: $11,337.

Looking forward to getting over $25,000 of credit card debt paid off in 2009.

Wishing you a Merry Christmas and Happy New Year!

-Adam

The Credit Blogger

Credit card debt report December 2008

Hello-

It’s that time of the month, the time when I talk about my credit card debt and let you know how much longer until I am debt free.  Here is my credit card debt report for December 2008.  I am only a few payments away from getting my Discover Card totally paid off.  I just sent in another $21 payment on my $518 balance.  I am so looking forward to getting this card paid off.

I am thinking about switching to a Discover Motiva Card where they give you a credit every 6 months of one month of interest charges if you make all your payments on time.

Then, I can transfer the balance of my stupid AT&T Universal Card to it and get those bastards out of my hair.

Here’s what I owe:

Bank of America: $16267.64

Stupid AT&T: $10342.02

Chase: $14292.01

USAA: $10187.33

Discover: $518, with pending $21 payment.

Total Credit Card Debt for December 2008: $51,607.

Total Credit Card Debt for November 2008: $52915.05

Total Credit Card debt as of September 2008: $54,154

Difference from November: $1308.05

Total Credit Card Debt Started with: $62124 Feb 2008

Total Credit Card Debt Paid Off: $10517.

Pretty cool, I’ve paid off over $10,000 in credit card debt this year.  Just realized that as I put it in the calculator and typed it up.  Hopefully, I will accelerate how fast I can pay this debt off and get maybe $25,000 more paid off next year.  And then get it all paid off by 2010. That’s the goal.

Be credit card debt free by July 2010 and buy a new one story house with a library and big walk around veranda and a new dark blue Toyota Tacoma.

Thanks for reading!

-Adam

The Credit Blogger

Credit card debt report November 2008

Hello-

Just a quick update to post my credit card balances for November 2008.

Discover Card: $1096.18 with $34.90 payment pending.

USAA: $10,300.88.

ATT: $10,456.90.

Chase: $14,470.45.

Bank of America: $16,590.64.

Total Credit Card Debt for November 2008: $52915.05

Total Credit Card debt as of September 2008: $54,154

Difference of: $1238.95

Total Credit Card Debt Started with: $62124 Feb 2008

Total Credit Card Debt Paid Off: $9208.95

How long until I am debt free?  Who knows.  Hopefully in 2-3 years.

That’s all for now.

-Adam

The Credit Blogger

Credit card debt for September 2008

Hello-

Just wanted to post a quick update to myself basically keeping track of how well my credit card debt repayment is going.

My Discover card is getting closer and closer to being paid off and I’m starting to get excited at that prospect.  It has been too long since I have seen a zero balance on one of my credit cards.

I have $1865 remaining on my Discover Card.  Hopefully I can get it paid off by the end of the year.  I’ve been making around $600 in payments each month to it so in three months it should be GONE!!!

And then I can celebrate and go buy a brand new 100 inch big screen plasma LCD tv!  Don’t even know if they make those yet or if that’s even possible. :o)

After I pay off my Discover card I have a decision to make, I have 2 cards that each have about $10k on them, one with $14k and one with $16k.  Since both Bank of America and ATT Universal Card have both treated me badly either by trying to raise my interest rates or lowering my credit line even though I’ve made all my payments on time, I think I want to pay off those two first so they can stop earning so much interest off of me.

I’ll have a couple months to figure that out, first things first, get the Discover Card paid off!

Here’s my balances:

Discover: $1865

USAA: $10071 – Been using it a little which is why it has not gone down.  Slap my hand.

ATT: $10683

Chase: $14776

Bank of America: $16759

Total Credit Card debt as of September 2008: $54,154

I’ve paid off $7970 since Feb 2008.

That’s all for now.

-Adam

The Credit Blogger

Getting out of debt – I have $55427 in credit card debt

Hell0-

The road to getting out of debt is not a short one when you owe over $50,000 worth of credit card debt.  Don’t you just wish you were a mega bank and you could just write down your debts when you make bad investments?

I wish I had that power.

I would write down a few thousand dollars worth of bad buys that I’ve made throughout the years.

Some people will think that bankruptcy is one of your biggest options when you owe so much money and you don’t even make that much in a year.  But for me, it’s more of a principle thing.  I spent the money, I made the good and bad decisions with the money I borrowed, so it’s my responsibility to pay off all the money I’ve borrowed and get out of debt.

Can you even compare the feelings of getting out of debt through hard work and being frugal versus getting out of debt using bankruptcy?

In one sense, you’ll feel total elation that you’ve climbed your way out of a huge hole and will have a tremendous sense of pride.  You’ll also have developed the financial habits that will lead to a very prosperous future.  You’ll be able to save money for retirement and for your kid’s college.

In the other sense, you might feel embarrassed that you had to file for bankruptcy.  You’ll struggle finding a job because your potential employer will be able to check your credit and see you have a bankruptcy.  You’ll struggle to buy a car or house because the lender will see you as a very bad risk.  This will go on for at least 7-10 years if not longer.

Don’t get me wrong, I have considered filing bankruptcy to just wipe out my credit card debts.

But for me, that’s not the best answer.  That would be the ultimate last solution.

There are plenty of other options available before bankruptcy is my choice.

There’s debt consolidation, debt negotiation and debt settlement.

Here’s my credit card debt as it stands now:

Discover $2696

USAA $9754

ATT$10856

Chase $14966

Bank of America $17154

So basically in a little over a month, I’ve reduced my credit card debt by about $1200.

I had a good month incomewise for the month of July so I’m looking forward to applying a good chunk of that to my Discover card so I can get that card paid off SOON!

I also had to divert almost $600 from credit card payments to help my girlfriend out with a dental surgery.  If not for that, my debt would have gone down by another $600.

I’m sure this happens to a lot of people out there, those unexpected expenses that take away from your debt repayments.

The key is to not let it get you sidetracked for too long.  Do what you have to do then get back to paying off your debts.

That’s all for now.

Thanks for reading.

Have a great day!

Adam – The Credit Blogger

Who’s in control, you or your debt?

Howdy from Texas!

Who’s in control of your life, you or your debts?  Could you travel the world for a month if you wanted to without a care in the world?

Most people would say NO!

If you ask people why, they would say they don’t enough money, they have to work to pay the bills or some other excuse.

So who’s in control of your life?

For most people, it’s credit card debt and the credit card companies that are enjoying record profits at your expense.

They are getting rich while you and I are not.

We barely get by, we live paycheck to paycheck.  And then if our paycheck runs out, we have to borrow more money or get a payday loan and pay even more interest.

Now the question becomes, when do you want to get back control and power over your life?

When do you want to get out of debt?

When do you want to stop worrying about answering the phone because it may be another debt collector calling about those payments you’ve been missing?

When do you want to sleep through the night not worrying about how you are going to pay this month’s bills?

When do you want to stop making the credit card companies rich and start getting yourself a retirement or college fund?

Let me know when you want to get out of debt.

-The Credit Blogger