Tuesday, June 30, 2009

My total CC debt now at $89K

My total CC debt was once at $143K in 2007.

So I'm at least making progress in paying my CC debt off. Goal for being debt free is in three years: 2012.

Of course, I've got other worries. My car comes off a lease at end of the year so I've got to prepare for that. Either save some cash to pay what I know I'll owe and then turn the car in and then buy a $2k beater car. Or get a new loan to buy the car outright and start making new payments at end of year.

I've also got to worry about taxes next year. Since I sold our house I dont have any more tax writeoffs. Its going to hurt next year. I'll probably owe around $9K, maybe more. And being in our 50's and with so much debt I doubt we'll ever own a home again. Not that we ever did anyway. All we ever did was make payments to a lender.

Well, at least we can cash flow my kids through college. Get them into being successful adults. At least I have that satisfaction.

Added $4500 medical debt

Well, last month my wife had some elective surgery. Cost was $7000 but we paid $2500 cash and put the rest of the debt ($4500) on a new card specifically taken out for this new debt.

Well, one step forward, two steps back - in terms of debt repayment, that is.

Household Financial Corp (HFC) creditor raised rate from 6% to 28.99%

HFC raised my rate from 6% to 28.99% last month. I called and was told I was not eligible for a rate reduction because I've already been on two back to back 6 month hardship plans and I had reached my hardship duration limit with them. An HFC customer service supervisor said they would not lower my rate and that they did not have anymore debt repayment plans available for me. The supervisor recommended I call their Hardship department. Their Hardship department told me to call AICCA at 800-450-1794. AICCA routed my call to CreditGuard of America (CGA). CGA said they could put me on a 9% interest rate debt repayment plan with my HFC creditor. I am waiting to hear back from CGA (and my HFC creditor) if this is acceptable.

Hope this works out.

When I was paying 6% interest my monthly payment was $144/mo. If they jack my rate up to 28.99% then my monthly payment would be $184/mo AND the financial charge would be about $183.50/mo. SO my minimum monthly payment would just barely cover the interest.