February 2013 Credit Card Update

The last time I shared an update on our credit card debt was in October when we had $10873 in credit card debt.

Here are our current credit card balances:

  • AMEX $4572 (was $1809)
  • Chase $8280 (was $8714)
  • Wells Fargo Line of Credit $1063 (was $350)

$13915.00 is the grand total. 

Once again, our debt has increased.  By $3042.00.

And like the last time, I know why… of course I know why, I’d better know why!!

  • my used car needed a new engine and I wrote about that back in November
  • my husband’s two business vehicles are still out of commission so we have had to invest some repair money into our old Ford truck
  • my husband’s business did not make enough to meet his company overhead in January so we had to pay $235 out of our personal money (he had a job near the end of January which covered February’s overhead so I’m thankful for that)

I have to admit that the amount that our credit card debt went up is not actually as bad as I thought it would be.  I hate that it has gone up, yes, but I had been avoiding looking at the numbers for a couple of months because I thought it had increased by at least $5000.

Even though I had to buy a new engine for my car, I am still glad we made this choice instead of buying a brand new car.  Two of my friends in the last month bought brand new cars and I guess I could understand their reasoning a little bit better having gone through the experience I did with my car.  But on the other hand, I still don’t think I will ever buy a brand new car because I know good used cars can be found… wait, what am I saying?!  One of my friends’ car was 6 years old with about 50,000 miles and my other friend’s car was 7 years old with 73,000 miles.  Those two vehicles in my opinion would be considered good used cars, especially since the kept up with routine maintenance through the dealer.  But it’s not my business what other people do with their money, I can only try to manage my own.

I have been driving my car, and it is better on gas mileage than the big van I was driving.  It’s not as much as I had hoped.  Fueleconomy.gov says I should get 26mpg highway, and my commute is pretty much all highway driving.  I’m only getting 20-21 miles to the gallon, and it’s costing me about $18 each day to go in to work.  Of course the cost of gas has risen and we’re now paying $3.55/gallon.  I’m still driving the company van in one day each week and that costs around $25. My gas costs have dropped by about $14 each week.  It is great to see the tank filled for $45 rather than $95.

I feel confident that this year is going to be a good one for us and I am looking forward to seeing our debt go down.

What about you?  Are you struggling to get out of debt?  How is your journey going?

 

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10 comments to February 2013 Credit Card Update

  • Thankfully we haven’t had to use our credit cards this year, although we came close! Sometimes you just have to do what you have to do, and if that means using the cards, so be it. My goal is to pay off our credit cards this year. But life is unpredictable and we tend to get ‘hit’ with random expenses (medical is the worst) so who knows! I feel confidant we can at least put a big dent in the debt. Oh and gas, how I WISH I could cut down on our gas costs ($500-$600 per month!)

    [Reply]

    Mrs. Accountability Reply:

    Hi Angella, I hear you on the gas prices. And it’s getting higher every single day. It’s madness – it seems we’ll be paying $4/gallon before the month is up if it keeps up like it has been. I know what you mean about the random expenses. I do manage to keep a sinking fund for some things that I know are coming up, like auto insurance, eyeglasses/exam for me every two years, Triple A towing, etc., but we don’t have a lot more to put aside. I have a good feeling this year will be different. Good luck with your goals for this year! :-)

    [Reply]

  • I don’t have credit card debt, but I am trying to get rid of my car loan as quickly as possible. Only a little left!
    Alexis recently posted..Five ‘super foods’ you should try and include in your dietMy Profile

    [Reply]

    Mrs. Accountability Reply:

    Hi Alexis, that’s great that you almost have your car paid off! I hope it serves you well for many years to come.

    [Reply]

  • Alice

    I have eight days until my last ‘little’ debt is paid off, and I can’t wait! Two months ago I paid off another little one and it feels so good to have that extra money to roll over to other things.

    Once this small thing is paid off, I’m going to take that cash for a couple of months to build an emergency fund, then focus on what I have left. That consists of credit card debt (in my moms name – long story) and student loans. It feels so good to be at this point, I can’t even imagine what it’s going to feel like when I get more paid off.

    [Reply]

    Mrs. Accountability Reply:

    Alice, 8 days! I assume that means you get paid the last day of the month and you’re going to hit that last bit of debt and get rid of it! Awesome! I wish you the best of luck with your freedom from debt goals in 2013! :-)

    [Reply]

  • I was so excited to pay off husband’s truck last month and I had planned to put that $325 + $1000 of his quarterly bonuses onto paying off my car by August….but then last Friday, his company told him that his position was no longer needed and his pay will be cut $16,000 per year. That was like someone gutted us. He has already secured another position elsewhere (unfortunately it is in Mesa & we are in N. Phx…company truck is included – thank God!), the pay is still less than what he was originally making, but only $460/mo less as opposed to $1300/mo less! So, I am very thankful that I was able to pay off the truck for sure!! Now I just have to go out & find myself a job so I can get back on track with my debt snowball plan!

    [Reply]

  • Pam

    Right now my husband and I have some money set aside for emergencies, but if we ended up having to use credit for a while, I would likely use our home line plan. It’s like an equity loan and it has a much lower interest rate than our credit card. But, I hope not to ever have to touch it.
    Pam recently posted..How To Survive Financially After Losing Your JobMy Profile

    [Reply]

  • That stupid credit card debt! Your situation seems similar to mine. You know credit card debt is bad and you want to have it all paid off. Yet at the same time it doesn’t bother you that much that you have it and you continue to use the cards. I am the exact same way!

    I’m trying to break my cycle.. So I started a blog about paying off credit cards and recently launched a very unique 7-Step Plan as part of the site. I think you and your husband would make a perfect case study! Feel free to check it out on my site. The plan is totally free! If you do decide to join, I would love feedback from a fellow blogger. Thanks!
    Matthew Allen recently posted..I Need a Job Now and I Hate My Part-Time Job!My Profile

    [Reply]

    Mrs. Accountability Reply:

    Hi Matthew, actually it bothers me a huge amount that we have credit card debt. Yes, I have continued to use the credit cards and I hate that it was necessary. If I lived in the city, I would not have bought a car. I would be riding public transit but the nearest city from where I live is 16 miles away and I can’t move so I don’t feel that I have a choice at this point in having a car or not having a car. I’ll check out your 7-Step Plan. Thanks for stopping by and commenting!
    Mrs. Accountability recently posted..My Favorite Grocery Salvage Store Jumped the SharkMy Profile

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