Credit Card Debt Report 2011 – Where Has The Credit Blogger Been?

Hello-

It’s time for another credit card debt report. Like I said in my last post over 2 years ago – time just flies by so fast. I have not written since June 2009. The reason being was I was not doing so well financially. I experienced a financial hardship and was struggling to pay the bills and did not feel like writing about that situation at the time.

Here’s some of what happened:

Unexpected medical bills for daugther
IRS bill for self employment taxes
Student loans coming off deferrment
Drop in self employment income

I was unable to afford the over $1,000 a month in credit card bills along with all my other expenses.

As I mentioned in June 2009, I was looking at debt relief options. I was considering bankruptcy and debt settlement. At the time I was not able to qualify for debt settlement because I could afford all the minimum monthly payments. When this changed, debt settlement was the option I would choose.

Unfortunately going through a financial crisis basically forced my path to debt settlement. I used a do it yourself debt settlement course called Zipdebt to lead me through the debt crisis. From late summer of 2009 until spring 2010 I was getting all the debt collection calls I could handle as I could not make any credit card bill payments.

I was attempting to settle my Bank of America, Chase, Citibank, and Discover Card accounts. I was using my USAA credit card to pay my business expenses.

At first no one wanted to settle. This happened for the first 3 to 4 months I fell behind on my bills. After 5 and close to 6 months the banks had a change of heart and were willing to settle.

The good news is that I was able to settle my Bank of America, Chase and Citibank debts. A total of over $43,000 for $13,000. The money for the debt settlement offers came from family, a whole life insurance policy, and savings.

So here is what my current credit card debt situation looks like:

USAA $11,106.54
Discover Card $4,676.27
Capital One $796.33

I have paid off my auto loan which was $7713 in June 09. I was able to use the debt snowball to knock out this loan early before my financial crisis hit.

My IRS tax debt is around $5000. This is for tax year 2010 and the rest of 2009. The IRS takes a payment of $450 a month.

Student loans are still up over $35,000 and coming down slowly with my $202 a month payment.

So it hasn’t been easy.

Just hanging in there and keeping my head up.

This is just a summary, there is more to share soon.

Have a great day!

-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

How long does it take to pay off a credit card?

Hello-

Way too damn long!

Just got an email from my Discover Card saying my new statement was available and the minimum payment due is only $37.  Cannot remember the last time I had a minimum payment due of only $37.

So I take a longer look at my statement and see that of that $37, about $21 would be going to interest each month.

Now that’s a great deal if you are the credit card company.  But it sucks if you are the consumer who is trying to pay off your credit card balance.

So I went over to one of the free credit card payment calculators to see just how long it would take me to pay that sucker off if I just made the minimum payment of $37.

And here’s what it gave me: “It will take you 146 months to be rid of your debt. In that time, you will pay $1,138.47 in interest.

If you devoted $36.53 to your debt every month, it would be paid off in 51 months, and would cost you $536.29 in interest.”

So it’ll take me 146 months to pay off my $1300 balance and I’ll pay $1100 in interest charges! FUCK!

Man that just makes me want to open a bank.  I should make an offer to buy Wells Fargo or WaMU!  How the heck are you ever supposed to get out of a mountain of credit card debt if you pay $37 as a minimum payment and $21 of that goes to interest charges each month?

The answer is that you are NOT!!!!

Don’t even think about a late fee or any other type of fee.

Those usually run $39 each time and that will each up about 4 months of principal payments.

So you know what to do: pay much more than the minimum if you ever want to lift the burdens of too much credit card debt off your shoulders.

On the bright side, you can see that I made over $600 worth of payments last month on my Discover Card balance so know I only owe $1314.  Hopefully I can have that sucker paid off by the end of the year.

That’s all for today.

Have a debt-free day!

-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