Credit Card Report October 2010

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.

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16 comments to Credit Card Report October 2010

  • boo about the two balance weirdness. it would drive me bonkers, too, seeing only one of the two numbers decrease. paying credit cards can be so frustrating. however, i got excited today when i got one of my bills. it’s now going to be card #2 to get paid off this year :D i’ve been chipping away at this particular one for the entire time i’ve had it open heh. i feel so accomplished seeing those zero balances. yay for getting out of debt!

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    Mrs. Accountability Reply:

    @michelle, thanks! I love seeing those zero balances, too!! Thanks for visiting and commenting!

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  • WOW, that is a great decrease in credit card debt! Way to go!

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    Mrs. Accountability Reply:

    @Mrs. Money, thanks! I hope we can continue at this pace. I should really make monthly reports.

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  • Keep up the great work. Before you know it, it will be 10k, then 5k, then ZERO! Guess 2011 will be the year you become debt free?

    [Reply]

    Mrs. Accountability Reply:

    @Mr Credit Card, that would be fantastic if 2011 were the year of being debt free AGAIN! Whooo!

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  • That’s awesome progress and I’m also impressed that your credit scores have remained so high with the debt. Those things together show that you are clearly on the right path. Can’t wait to hear more progress reports as you achieve more and more milestones!

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    Mrs. Accountability Reply:

    @Money Beagle, it’s been a process, that’s for sure. Mr. A started out with no credit score at all, and he’s been helped a LOT since I put him on as a card holder on a couple of my accounts. The balance transfers that I did over a year ago really dinged my score, it was down to 722 at one point. I was used to have scores over 800, so I was really bummed. I will be sure to report more often.

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  • That is some fantastic movement. Question – with such amazing credit scores is your debt at 0%?

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    Mrs. Accountability Reply:

    @Evan, sadly no. None of the cards are 0% interest. I got skittish about opening new cards or doing balance transfers when my score dropped to 722 after the last balance transfer. I should look into it again though. Thanks for asking.

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  • That’s a great decrease!

    (As a side note, I use the American Express Costco card too. It’s nice getting a check back from them once a year…)

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    Mrs. Accountability Reply:

    @Jackie, thanks! I am going to start doing a monthly report since it seems like we are doing so good. I haven’t gotten too much from my AMEX Costco but I look forward to it now that I’m using it more often. Thanks for visiting and commenting!

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  • FB

    $5000 is nothing to sneeze at. But at $800+ a month being spent, I am not surprised :)

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  • Great job! I can’t wait to see that Chase card go down. Since we are a long way off from paying off our cards, I’ll have to just get happy for you and others who are doing this well!

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  • [...] in other blogs. Firstly, my good friend Mrs Accountability has updated us with her progress in her credit card debt reduction efforts. She is making progress and hopefully, she’ll be credit card debt free by next [...]

  • [...] Out of Debt Again, Mrs. Accountability reports that she and Mr. A managed to beat back their credit-card debt by over $5000 in just six months. Awesome! Congratulations, Mrs. [...]

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