Well shoot. It appears the last time I made a report on our credit card debt was back in April! Time sure does fly!
In April, our credit card debt was at $20,731.85. I am quite pleased to report that we continue to go steadily pay that amount down, and are now at $15,537.02. That is a decrease of $5194.83 in six months. It always shocks me to see how much the amount has decreased because that looks like we’re paying $865 each month, and I never remember paying that much during a single month. We’re also still accruing interest, so how can the amount go down so quickly? I’m supposed to know that, aren’t I?
The amounts we owe: $5256.89 to my credit union credit card; $7055.75 to our line of credit and $3224.38 to a Chase card.
I have decided that the next credit card targeted for elimination is the Chase card. Once I set my mind to it, I do a pretty good job at sticking to my goal.
Speaking of credit cards, while paying bills over the weekend I took a closer look at something that I suspected was happening. I have a credit card which has two finance charges fees. This is something new since the recent changes in laws regarding credit cards. One is for a balance transfer that was transacted quite a long time ago, and the other is for current and recent purchases. Apparently the way this card works is the entire payment goes toward the balance transfer while the current and recent purchases continues to grow higher. The finance charge is 9.5% on both. However, it bothered me quite a bit when I noticed that the amount of the current and recent purchases is growing larger each month. This is because I have (had) DirecTV and our broadband charged onto that card. I then make a payment toward the card to pay those two bills in full.
I just don’t like how that one amount is growing higher and higher. I can’t really tell you why it bothers me so, because the total amount is going down. At any rate, I decided to switch both of those companies to my American Express Costco Card where I’ll be making a little bit of money in rewards. I’ve also been using my American Express Costco Card to buy my gas at Costco. And I always pay the American Express card in full. In fact, I usually sit down each weekend and use Billpay through Wells Fargo to send a check as sometimes American Express will not allow me to make a payment because not enough days have gone by.
I recently checked Mr. A’s and my credit scores through Credit Karma. While it’s reportedly not an actual credit score, I think it comes close enough that we can keep an eye on how we’re doing. Mr. A’s score is at 745, and mine is at 763. Mr. A’s credit score is doing fantastic, considering in February 2008 he wasn’t even showing up at the credit bureau.