The Life of The Evil Credit Card- part 5

evil credit card[ What a b*tch! ] This is my 5th installment for this series. If you haven’t read the previous installments or if you want to refresh:

Part 1 – Part 2 – Part 3 – Part 4

The basics:

  • I applied and was approved for a $3,000 credit limit on 4/12/11
  • On the same day ( 4/12/11) I charged a complete root canal & filling on the card = $2,297.00
  • 48 month promotional period = 14.9% APR
  • Minimum monthly payments = $64.00
  • If I paid only the minimum payment of $64.00, in 4 years it would be paid off. I would have paid $3,095.00, which is $798.00 in interest.
  • If I paid $80.00 a month, I would have paid $2,887.00, which is $590.00 in interest.


Previous Balance- $1,119.94
New Purchases- $0.00
Payments- $199.00 ($100.00 posted on 8/15 & $32.00 posted on 8/23 & $67.00 posted on 8/30)
Credits, Fees, etc.- $0.00
Interest Charge- $12.85
New Balance- $933.79
Minimum Payment Due- $64.00
Days in Billing Period- 30



Notes: I’m so happy to finally have the balance on this card under $1,000 and can’t wait until it’s paid off. So far, I’ve managed to pay off about 60% of my balance and I’m feeling better with each payment I send in—no matter how small.

The other day, a fellow blogger commented and asked why I don’t just pay it off with our savings. Oh, I’ve thought about it so many times, but in reality it just wouldn’t be as beneficial to me. I know that I’m paying interest, $95.29 so far but that’s (in my opinion, for our circumstances) okay.

If I were to just take the money from savings to pay it off, I wouldn’t replace it with the same urgency as I would make payments on the card. I also wouldn’t really remember how bad I got burned from adding some debt back into our lives. If I end up paying around $140.00 in interest but take something away from this experience, such as avoid repeating the same mistakes in the future, then that will be a $140.00 well spent.

Actually, I guess until we get health insurance, this card might keep getting used (I need to keep looking for inexpensive insurance) but I wouldn’t run up balances on other cards and such. Everybody is different and some things work better/differently for others, but for us…this is the right choice. If I keep making only the minimum payment from here on out: evil credit card part 5

About Jen Perkins

Likes: saving money, being debt free (aside from our house), zombies, travel, getting money, blogging and dogs. Dislikes: debt, being broke, bunnies, wasting money, not having enough money to travel the world and paying interest. Facebook  ♥  Twitter  ♥  Google+  ♥  RSS


The Life of The Evil Credit Card- part 5 — 6 Comments

  1. Credit cards are an unfortunate evil sometimes. 2 years ago my wife and I had to use a credit card for some medical bills. It totally sucks adding debt to your finances – especially when it’s a credit card – but sometimes that’s how life goes.

    Good for you though on paying it down quickly.

    • I just call it the evil credit card because of the high APR and the fact that I had finally become debt-free before this. 😉

  2. I recently had an unexpected incident occur, so I charged it to my recently paid off cc. I often get asked why I didn’t just use my savings, but I view it just like you do. I would not save money as quickly as I would pay off the credit card. I hate being in debt so the credit card will be paid off quickly. However I wouldn’t feel the urgency to build my savings back up as fast. I am glad I came across someone who thinks its not crazy to pay interest when you have the money to pay the bill.