Mikes_Wife06:
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Money to-do list complete (well, almost!)

Posted Tuesday, March 11, 2008 1:53 PM

As I mentioned in a previous blog post, my credit card debt is finally gone! Whoo hoo! Mike and I had originally planned to have it paid off by this time last year but life happened and I'm sure you know how that old song and dance goes. The important thing is that we actually managed to do it. We still have two car loans and Mike's debt that he brought into the marriage, but now our debt snowball is bigger than ever and we're hoping to have paid off everything but his car loan by April of 2009.

On top of that good news, I've also been working on ways to cut our monthly expenses down as well. Just today, I've managed to cut our cable internet bill down by $4.95 each month (discontinued wireless internet since my laptop died and I don't really need a new one), cut our National Fuel bill down by $21.65 after enrolling in budget billing, closed two credit cards that I've never used (I'm not worried about that temporarily hurting my score), and have looked into cutting our cell phone bill by around $50/month. Mike and I have also been discussing switching our internet provider and taking advantage of a great deal that is currently being offered by another company. Lastly, I enrolled us for electronic billing statements from as many of our utility companies as I possibly could to help us cut down on the amount of mail we receive. Whew! It's been a busy day!

Posted by Mikes_Wife06
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Comments

re: Money to-do list complete (well, almost!)

Good for you!  It sounds like you are right on track.  What do you mean by closing out your credit cards temporarily hurting your credit score?  I've never heard of that...

Posted by Choensa    Tuesday, March 11, 2008 2:02 PM


re: Money to-do list complete (well, almost!)

If you have open lines of credit that you never use, it can reflect negatively on your credit report, potentially hurt your score.  You always have to call to cancel too.  Cutting them up doesn't count as cancelled.  My friend thought that once you cut it up, it was cancelled, she was SOOOO WRONG!  I think that is what she meant by temporarily hurting her credit.  

I just paid off my last credit card.  It feels so good to eliminate debts.  Congrats on the savings too!

Posted by MandyE-worth    Tuesday, March 11, 2008 2:26 PM


re: Money to-do list complete (well, almost!)

Good job!  So far, we're on the same "plan" you're on.  We call it our Debt Diet.  We've paid off my car and all my credit.  Now we're using my now empty credit card for gas and groceries, which we'll pay off each month but allowing us a ton of points (I get 3 points for every dollar spent on the card) which we'll use for gift cards to go to dinner every once in awhile.  We are close to paying off my husband's car and credit.  Just a few more things and we'll be much better off.  (well, except for the darn house payment and school loan)

I need to work harder on reducing my monthly expenses.  I spend way too much at the grocery, and I need to learn to stop buying things for our house!  Our internet is way too expensive so we're looking into maybe switching as well.

Posted by edmo    Tuesday, March 11, 2008 2:37 PM


re: Money to-do list complete (well, almost!)

Wow, I had no idea I could respond to my own post! Buy anywho...what I was referring to in terms of my credit score taking a temporary hit when closing my 2 credit cards is that your credit score is mainly determined by your debt to available credit ratio. Having alot of accounts open actually helps to improve your score if you do not regularly carry balances on your cards as it actually decreases your debt to credit ratio. The only time multiple open accounts can hurt you is when applying for a mortgage since lenders see this as a risk factor to get in debt quickly and default on your loan. When you close accounts, your debt to credit ratio actually increases and your score will therefore take a temporary hit. With responsible credit use, your score will rebound within a few months time.

Posted by Mikes_Wife06    Tuesday, March 11, 2008 2:52 PM


re: Money to-do list complete (well, almost!)

Smart woman - I like people who know their credit reports, since I look at them all the time at my job.  A lot of people really don't understand them at all . . . It's good to have a low debt to credit ratio, but don't go getting tons of random credit cards!  I'd actually like to see a few that are regularly paid down, not too many, not too few.  :)

Posted by Mrs. Rachel A.    Tuesday, March 11, 2008 4:05 PM


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