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What a mess

September 19th, 2013 at 06:49 pm

Well its time to start focusing on debt. After a week or two my emergency fund will have the money back in it and then I can put money toward my credit card again.

I currently have 3 student loans that are growing instead of shrinking, 2.5 K on a credit card with an 19% interest rate and 500 on another that I will pay off immediately because that card has a 29.99% interest rate. The 2.5 K card scares me though. Last time at my old temp job I and all the other temps were laid off three weeks into our new contract and also the same week I was about to make my first big payment on my credit card.

And then there's the car loan. I've always had the thought that I shouldn't pay off the car loan before the time because if I get in an accident it was a waste of money I'm not sure how solid that thinking is. The fact of the matter is that the car needs a check up as it has been making strange noises. I hope its fine because that would mean having to make repairs and another depletion of my EF. Hopefully the repairs are under warranty.

The car is old though and paying it off would be awesome then I could use the trade in value toward a new one when the time comes.

But between the ageing car, the credit card debt I've feared paying off and my student loans of which half of growing instead of shrinking I'm frightened. Not to mention that this employment is temporary although its gone on longer than I could have ever imagined.

Guess I just have to take it one day at a time.

Posted in Credit Cards, Car | 4 Comments »

4 Responses to “What a mess”

  1. Bob B. Says:
    September 19th, 2013 at 07:15 pm 1379618156
    1379618156

    I would suggest not paying off the car loan early. Pay off the 29.99% card as soon as you are able, then focus on the 19% card. Make minimum payments on all other debts until your high interest debts are paid off. Good Luck!

  2. creditcardfree Says:
    September 19th, 2013 at 08:11 pm 1379621472
    1379621472

    It does feel really good to have less debt. I hope you can at least start sending in payments every so often to your loans that aren't as scary to part with. A lump sum of $2.5K can be a little much for some people.

  3. Permanent Temp Says:
    September 20th, 2013 at 05:15 am 1379654116
    1379654116

    Thank you Bob. Smile I am paying off the 29.99% card as soon as my check clears. I have also hid it so I don't use it again. I thought it would be smart to use it for these medical emergencies and then just pay it off immediately from my emergency fund. But I didn't think and started charging other things. I've learned the only thing that works is taking the damn thing out of my wallet. At one point my husband (who was not my husband then) held on to the card for me so I wouldn't use it.

    It's too bad I spent that money I could have made a nice credit card payment to my other card with that. But its over now. No more.

    Credit card free- don't I know it!! That 29.99% card used to be maxed out at 3K I didn't touch it again for like a year and then when the medical emergency happened well I outlined that earlier..

    I don't have a lump of 2.5K at the moment. I'd like to replenish 1K in my EF first in case I have another medical emergency or a problem with my car. Then depending on how long the job lasts I can make all sorts of payments to wipe out that last credit card. I haven't been credit card debt free for at least 4 years. Frown But it will be nice to be there again.

  4. Permanent Temp Says:
    September 20th, 2013 at 06:35 am 1379658906
    1379658906

    There we go. It's midnight and the 29.99% is now paid off and taken out of my wallet. May I never rack it up again. Smile

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