October 2012 Credit Card Debt Update

The last time I shared our credit card debt was in July when I did the balance transfer when we had $9880 in credit card debt.

Here are our current credit card balances:

  • AMEX $1809
  • Chase $8714
  • Wells Fargo Line of Credit $350

$10873.00 is the grand total. 

As you can see, our debt increased.  I can tell you one reason why – we had to buy $1600 worth of tires for one of our vehicles after Mr. A’s business vehicles were disabled.  Why $1600?  That’s what I asked. But it was a situation where we were stuck without any options.   We have a 25 year old truck which we use to haul our water.  The engine was rebuilt less than two years ago.  The community well is less than a mile from our home, so the six year old, dry rotted tires were not a problem for the little bit of driving that was being done.  But when we had to start driving on the highway, in less than two weeks time, Mr. A had three blowouts.  This vehicle was given to us by my in-laws and they had special rims placed on the vehicle, which of course required special tires.  Giant tires which probably decrease the miles per gallon significantly.

It wasn’t until after we bought two new tires for $800 that I had my brainstorm.  I told Mr. A we should buy four regular style rims from a junk yard, and then buy four regular tires.  But then Mr. A had the third blowout and before I knew it we had bought four new tires to the tune of $1600.  For a long time I was saving back money for new tires but then I had to seriously deplete our sinking funds.

I am paying $300 each month to the Chase Card, $100 to the AMEX and whatever extra I can find to the Wells Fargo Line of Credit. I hope to have the Line of Credit paid off soon, as it is the balance left on the car.

If I can ever start driving my little car, I anticipate a savings of at least $175 each month in gasoline costs since it should get much better mileage than the passenger van I am still driving.  I told my employer it won’t be long, and I was told, “No hurry!”  So I haven’t been stressing out about it too much.

The remaining problem with the little car is the ignition key gets stuck.  It gets stuck in several ways.  I can put the key in and take it out, but I cannot turn the car on.  When I finally get it turned on, I can turn it off, but the key won’t come out.   I have done some research, and it can be a costly repair.  So I am waiting on Mr. A to come up with a cheaper solution.

I hope the next time I share an update our debt will be under $10,000.  This is such a struggle!   I have been blogging over five years now, working on this debt. I am grateful I have a job and we have enough money to make ends meet.   There are many people in worse situations, and there are people with much larger amounts of debt.  I feel embarrassed at times though because I have read so many personal finance bloggers who are able to get out of ten times as much debt as we’ve had in half the time.

Thanks for reading and following along on our journey.

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10 thoughts on “October 2012 Credit Card Debt Update

  1. Ouch, those are some expensive tires. Hopefully you can get new rims in the next few years before they need to be replaced again. Setbacks can be discouraging but you will get there!


    Mrs. Accountability Reply:

    Jackie, I was just telling my husband today that we need to start putting aside money for the next set of tires, and with planning, we should be able to replace the rims and tires for much less than that amount. Plus, I have heard that these monster tires cause more wind resistance and the vehicle gets worse gas mileage. Thanks for stopping by!


  2. Debt seems to have a mind of its own. When you think you have something accounted for something else comes up. Emergency funds really do come in handy. Hopefully you can find a way to fix the ignition problem. $1600 for tires I have been there before.
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    Mrs. Accountability Reply:

    Hi Thomas, yes, frustrating. Actually what is really frustrating is I had a sinking fund where I was saving money for tires – while I wouldn’t have had $1600, I was saving $100/month so I may have had around $1200 but I had to stop saving for that particular sinking fund since we haven’t had the money. I hope we can fix the ignition problem for not a lot of money too. Thanks for your comment. Mrs. A


  3. Couple of things….About the tires get in touch with a couple of junk yards and tell them your looking for tires and rims….gotta be cheaper than $1600. And the ignition…spray a bit of …just a bit…of liquid wrench in the key slot. Chances are a bit of crud has gotten in the key slot and is causing the problem, Good Luck with the CC debt.


    Mrs. Accountability Reply:

    Hi Jestjack, right – that was my thought too. We should keep an eye out in the meantime. We’ve already sprayed the ignition and did this tapping thing that is supposed to set the cylinders back correctly. My husband knows how to get the key in and out and showed me how yesterday. I have to turn the key towards me (it takes all the strength I have in order to make it work), then it will let me turn it on, and take out the key. I don’t think this is going to be a permanent fix but hopefully will last until we can come with another solution. Thanks for stopping by and commenting!


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