Credit Card Worries and Update

President Obama signed a new bill regarding credit card rules which will go into effect in 9 months.

I need to do some research on it as I have heard there are some good and bad points to the new bill. I’ve heard that it could have an effect on “responsible” credit card users – by that I mean those who pay their bills on time, pay more than the minimum, etc. I’ve heard this new bill could mean that credit card companies will start charging yearly fees, and I make a point to hold cards that do not charge a yearly fee.

I’m very unhappy about the amount of credit card debt that we continue to hold.  I am paying twice the minimum on most of the cards, but it still feels like some months we’re taking one step forward and two steps backward.

Part of the reason for this is because we have still been funding Mr. A’s business with personal money at times. Soon that will change as his business money is being more thoroughly separated from our personal money.

An example, last month Mr. A had a job that was 80 miles away from home, and he went there for 23 days which we calculate cost $400 in gasoline.  That gasoline was charged to a personal credit card.  Usually there isn’t such a huge amount spent on gasoline for the work he does, so it is easy enough to absorb the cost.  But this time, I am making a payment directly from his business account to the credit card.

Mr. A is also now using a business credit card to purchase materials for jobs, so that is no longer showing up on the personal credit card debt.

At this time, our credit card debt is at $22K.  Here’s where we stand:

Chase 1: 13.24% with a current balance of $6213.68. However, additional payments in the amount of $700 will be sent by the end of May which will bring this total down.

Citicard: Interest rate went up from 0% to 9.24% in March with current balance of $2163.84. I need to see if any of my other cards have a 0% interest rate for balance transfers. I know one card that will do it for 6 months, so I should get it moved over!

Chase Green: 0% interest current balance $5587

FIA: 0% interest current balance $7041

I tell you against my better judgment I’m almost to the point where I would like to have the credit card debt wrapped into the mortgage, and then cut up all the credit cards, period. That would take it up to $71K. But then again, my better judgment says don’t wrap credit card debt into a 30 year mortgage.

Mr. A doesn’t think we should do it, because he reasons we could somehow come up with enough money for our mortgage at $500 no matter how bad things get, but the higher it is the more difficult it would be to make the payment. So in the meantime we continue to struggle.

I know eventually we’ll come up with a solution, but when or what that will be remains to be discovered.

Maybe I’ll just try to be grateful for the positive.

Today I’m grateful that:

  • Mr. A’s business is prospering and we are able to make credit card payments at all.
  • only one credit card is being used actively.
  • none of the cards are at their maximum limit.
  • most of the cards are at 0% interest.
  • Mr. A watches Dave Ramsey.

So how goes your financial situation lately? Anything frustrating you? Can you find something to be grateful about even with your frustration?

Mrs. Accountability

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