Recent Divine Discussions

Friday, March 16, 2007

Attacking my Credit Card Debt

For the last 2 months I have paid about 10 dollars over the minimum payment on ALL my credit cards. This resulted in my credit score increasing by 18 points (as 2/28/06). 18 dang on points!!!!! Just by paying an extra $100(total) for the last two months.

After my credit score went up the 18 points I decided to try and get myself a new credit card. I know they always say "dont apply for new credit cards" but the purpose of this card is not to spend money but to decrease it! Makes no sense huh?!! Let me go further.

Here are my criterias for the new credit card:

  • 0% APR on purchases and balance transfers for at least 12 months
  • No fee on balance transfer
  • Awards or cash back on purchases
  • Low APR after promo ends

I found all those in Discover Gas Card (not only for gas purchases). I got approved for $4000. I transfered the rest of my credit card balances to the new card. So now i have ALL my credit card debt on 2 cards that both have 0% APR until April 2008 (I did the same thing but with a card I already had that was offering the 0% Balance Transfer). So what did this save me:

  1. I saved $140 a month on credit card payments (thats $140 dollars off my monthly expenses. Debt-to-income ratio is now down to 50%!!
  2. I saved $1442 in interest I would have accrued by the time I plan to pay these off (12/07).

So now when I pay my CC debt each month I actually see the balance going down.

Man.....God is soooo goood!!!

1 comment:

Rad said...

Good move girl. Im trying to get the score up a little higher to play the 0% balance transfer game and start making some money off of these credit cards. turn the tables on 'em. 12/07 seems like along shot, you'll pay them off before then