[ What a b*tch! ]
This is my 6th installment for this series.
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.
THE SIXTH BILL
Previous Balance- $933.79
New Purchases- $0.00
Payments- $133.00 ($67.00 posted on 9/14 & $66.00 posted on 9/27)
Credits, Fees, etc.- $0.00
Interest Charge- $11.21
New Balance- $812.00
Minimum Payment Due- $64.00
Days in Billing Period- 31
TOTAL INTEREST CHARGED: $106.50
TOTAL PAYMENTS SENT: $1,591.50
Notes: Yay, it’s getting lower. The $82.00 payment that you guys voted for won’t be reflected until the next bill, don’t worry. It’s nice seeing the interest drop each month. If I ever end up using this card again, I’m going to make sure I get the no-interest terms, if they’re available. I know the terms and stuff vary between different providers but hopefully I’ll get a better deal.
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:
Have you considered putting everything on a 0%?
Honestly, my credit still isn’t good enough to obtain a new card, let alone one with a 0% balance transfer. I actually have too many card right now but they’re older and keep my available credit high. I’m getting closer though, hopefully a few more months and 30-40 bucks in interest left. That would be a good idea for most other people though.
You’re making great progress. I wouldn’t mess with balance transfers at this point. You’ll crush this very soon.
I can’t wait.