Our 2007 Goals Status, Part 3: Pay Off Credit Card Debt By November 2007
Posted on December 10, 2007 by Him and tagged credit, debt, goals
This is part 3 of our retrospective look at our 2007 goals. Here's part 1 and part 2.
When we first started this blog, we had $18,054.88 in credit card debt. A year later, in January 2007, we reduced it to $11,560.40. It was our goal this year to eradicate all of our credit card debt by November 2007.
On June 18, 2007, a whole 5 months early, we sent in our last payment. Suck it, credit card interest.
The road to no more credit card debt was an interesting one. While Her had higher balances, I had atrocious interest rates. One of the first things I did was to reduce my retirement contributions to pay off the credit card debt. I eventually played the balance transfer game for the lowest interest rate until all of my credit card debt was at 2.99%.
When both Her and I had paid off all of our non-0% credit card debt, we signed up for rewards cards that we judiciously paid off every month, making sure not to pay any interest charges. We've used those cards to accrue rewards that will pay for much of our honeymoon. It's about time we took back from the credit card companies what they took from us. That last sentence made me sound like a vindictive barbarian. I digress.
Status: Completed.
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MVP | Dec 11, 2007
Sorry to be a buzzkill. But while it's awesome that you paid off your credit cards, I still don't see how the credit cards owe you anything, or how you deserve anything back from them. I'm certainly no fan of credit card companies, but they DID essentially loan you thousands of dollars when you wanted it. Granted, it was on their terms, but you accepted those terms. I'm glad you now feel good about taking advantage of their rewards programs, but I just don't get where they owe consumers anything more than they've already given them. They're in business to get our money, after all.
Him | Dec 11, 2007 | Reply to MVP
MVP - Sorry for trying to interject a little humor into the blog post. Next time, I'll try and NOT to look at the bright side of our current credit card use and continue to self-flagellate ourselves for our past abusive spending! Thanks!
MVP: You're right, they are in business to get our money. But they often go about it in a less than ethical manner. Flooding financially naive 18 year olds with offers, jacking up limits once they see unhealthy spending habits, slashing minimum payments to such a level those in dire financial situations pay up to 3 times their original balance.
They breed an environment that encourages bad spending. And while it is true that we all entered into the agreements willingly, the same can be said about tobacco products.
So, the credit card companies don't really owe us anything. You're right. But it certainly feels good to get a jab in after being crushed by negative numbers.
But I too digress.
Congratulations. Now stay that way, eh?
Him | Dec 11, 2007 | Reply to Ed
Ed - Credit cards did not "breed an environment that encourages bad spending." That was all us. We were very self-aware of every penny we put on those cards. Unlike many who write about PF, we're not in the category of regretting (most) of the purchases on those cards.
But you're damn straight that it does feel good to know that we're going to be getting free stuff on their dime. Suck it, credit cards.
Debt Help | Dec 11, 2007
This is one of the reasons why I shy away from credit card companies, it is so easy to lose sight of the budget that you have set for yourself when you have a card, you would automatically think that "I can pay it back anytime but I need this right now"
About the credit card companies and rewards cards, I honestly don't see any good with it.. If you didn't have interest to pay for the card and just saved the money, won't you be able to buy it as well? It seems the same to me..
devil | Dec 13, 2007
Many congrats on paying off those cards. It's a great feeling, isn't it?
Of course, your shredder will be getting quite a workout in 2008 with all of the new credit card offers.
I paid off all my credit cards in 1992, haven't paid cc interest since, and I STILL get tons of offers for cards. They're wasting their paper and postage on me.
Laura | Dec 10, 2007
Congrats and you should get something from the credit card companies. You deserve it!
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