After credit card debt then what? - Page 2

JoyJoy · #21 (**permalink**) 02-17-2006, 07:01 PM

LOL Snoopy! I didn't think anyone else thought like this. I pay our Amex bill every two weeks just for that reason.

CRFSaver · #22 (**permalink**) 02-17-2006, 07:32 PM

When I paid off my credit cards and student loans I got an American Express card for the main reason it forced me to pay it off. Now I have the financial discipline (as well as income) that I should condiser a Visa since its accepted in more places.

JoyJoy · #23 (**permalink**) 02-18-2006, 06:53 AM

I agree with you CRFSaver that the Amex card does require discipline and one should have a Visa or Mastercard (or a debit card with the Visa or MC logo) for the places Amex is not accepted. Two cards, to me, is more than enough. WTG!!

BCHGRL · #24 (**permalink**) 02-18-2006, 09:28 AM

I have paid off my credit cards in the past. But I found no way around it when it came to financing our wedding. After our wedding in April, I expect our credit card balance to be around $10K. The interest rate is 9%. We will pay $1,500 a month until it is paid off. We both get extra paychecks a few times a year and that will go towards it too.

Once we get it paid off (October 06 is my goal), then we will put a portion towards the principle on our home and another portion will go towards our savings each month.

I'm really not stressed about paying it. We're maintaining our $8K in savings, and my car is paid off and his will be next month. If had run up $10K on stuff like e-bay or Home Shopping Network, then I'd feel bad. I don't feel bad about using a credit card for my wedding because otherwise we'd have to wait another 2 years to get married, and we've been dating for 4 and engaged for 1.5 years.

Keen · #25 (**permalink**) 02-18-2006, 09:38 AM

Bchgrl,

I don't understand, you are putting 10k approx of your wedding on a CC and planning on paying $1500 a month to clear it off all of it off by 10/06 (8 months from now)

...but it you saved cash for the wedding it would take you another 2 years?!?! I don't oject to anyone using CC's but those numbers dont make sense to me....

Am I missing something?

Ima saver · #26 (**permalink**) 02-18-2006, 11:37 AM

The american express that we have does allow you to make monthly payments, we do not have to pay it all off everymonth. But we do. It is only used for purchases for building a house. I deduct from that house's account, every time we use it, and pay it off when the bill comes in.
I would not spend 10K on a wedding if I had to charge everything, but knowing me, I wouldn't spend that much if it was given to me. I would keep the money and have a cheap wedding. I spent $100 on my last wedding.

Lostsoul33 · #27 (**permalink**) 02-18-2006, 06:12 PM

Ima, I'm with you. I wouldn't spend 10k on a wedding either. We got married in the Justice of the Peace backyard with only 2 friends accompanying us. A very cheap wedding and we're going on 9 years of happiness. I realize that everyone has different priorities though.

TBH · #28 (**permalink**) 02-18-2006, 06:29 PM

Hey, BCHGRL, go for it. Sounds like you have a plan you're comfortable with, and it sounds like you're committed to not paying CC interest on that 10K for years to come.

Congratulations.

sweeps · #29 (**permalink**) 02-18-2006, 06:34 PM

10k isn't very much for a wedding, especially if you live in a big city. You (hopefully) only do it once -- it should be a big deal.

baselle · #30 (**permalink**) 02-18-2006, 06:53 PM

You know, Keen, you raise a good point - with debit cards, bank cards, ATM cards, and internet banking, if you have substantial savings and credit history, do you really need a credit card specifically? Back in the day if you wanted to make a big purchase or travel overseas, unless you wanted to visit a brick and mortar bank between the hours of ten and three, you had to use a credit card. Hence the "emergency" aspect.

After I paid off my credit card, I took the payment and put it into the emergency fund, then savings, then fixed investment. Its fun watching the interest rate turn into interest yield.

robex · #31 (**permalink**) 02-18-2006, 09:27 PM

We've been without debt, other than a mortgage, for 15 years. We have had a $5000 car loan in that time. We do use credit cards, but pay them off monthly...

Some months were really hard, but we persevered and not having debt is what allowed me to be a stay at home mom. It also allowed Dh to semi-retire at 42.

Ima saver · #32 (**permalink**) 02-19-2006, 07:36 AM

Sorry, i have to disagree about the big wedding. When I got married, I had a party at my house. A friend got their minister to come over to marry us. We got all dressed up in our best clothes (that we had), no flowers. A friend made us a small wedding cake and a few other friends put out some food and snacks. We had an open bar and had a party, then left for the cruise I still have the memories and the pictures 29 years later. We spent about $100 on our wedding and I loved it.

BCHGRL · #33 (**permalink**) 02-19-2006, 09:51 AM

I can pay it off in 8 months, but it would take me 2 years to save for it. Why? Because life gets in the way when you are saving for something "optional" like a wedding, not like something necessary like debt. When we got engaged, I planned to save for the wedding and buy a house when we were married. Then a hurricane hit our area and housing prices doubled. We had to buy then or we would never be able to own. Next week will be 1 year we've owned our home and we could profit $50K or more if we were to sell our home today, and the market is considered "slow" compared to last year. Homes that went for $150K in 2003 are now selling for up to $400K in our area. I also had to buy a home 45 minutes away from my job. We couldn't afford anything closer, so I have to pay twice the amount in gas as I did in my previous budget.

Do you realize that the average wedding cost is now $22,000? My perspective is that I am saving 1/2 price. As for home weddings without flowers or anything fancy, that is great for those of you who did it and have great memories. However, when immediate family is traveling up to 20 hours and spending hundred of dollars in hotel costs to attend, I feel obligated to throw more than a house party. This is only going to happen once. I'm trying to do things that are memorable but aren't extremely costly, such as holding a beach ceremony (free location) and having a reception at a Zoo where animals, such as monkeys and birds, greet our guests ($50 per animal w/handler). Dress is casual so we're saving there, and I'm using my Aunt, a notary public, as my officiate. We're using our own vehicles for transportation. My mom is baking cookies for wedding favors. I had my mom's wedding gown remade beautifully for $200 (including the veil), but then the dry cleaners ruined it so I had to buy new. We're hanging out with family at the local beaches afterwards instead of going on a honeymoon. We'll take our honeymoon one year after our wedding, and we will only go once we have enough saved. (Unlike the wedding where folks make plans early, you can delay the honeymoon if you need to save longer.) We'll be saving on our honeymoon too because we'll stay with our military friends scattered throughout Europe.

Ima saver · #34 (**permalink**) 02-19-2006, 10:22 AM

Well it sound like a wonderful plan and I hope you have the greatest day of your life. I have no family and didn't back then either, so maybe that is the difference.
That is great that your house is worth so much more now, you were smart to buy it then.

BCHGRL · #35 (**permalink**) 02-19-2006, 10:33 AM

PS - I forgot to mention that I do not have a wedding planner. There is a local business that provides wedding services that cost in up to $2,500. I just go to their website and get great ideas and find a way to incorporate them in my wedding.

Check it out:
http://www.barefootweddings.net/

Sorry to get off topic. . .

markitcat · #36 (**permalink**) 02-19-2006, 11:47 AM

I have no CC. I use my debit card for everthing. I seldom carry cash except when I go to flea markets. This keeps me honest. I know how much money I have, bills get paid first, And I keep good records of where most of my money goes. About 10 years ago I was way over in CC debt, have paid it all off. Now just have my House, 5 more years, my car 2 more years, A student loan that we've been milking for over 10 years, it's too easy to defer payments. I don't even know how much is owed still cuz it's hubby's loan and he pays it, but I should check on that. I have a $500 balance left with garage for recent work on my car that I will pay off with income tax refund. The car broke down on Christmas eve with electrical problems, and I was cash poor. We are in the best finacial condition in our lives, and after all those years of paying off debt, we are now starting to build some savings.

Ima saver · #37 (**permalink**) 02-19-2006, 11:53 AM

Good for you markitcat!

elcheapo · #38 (**permalink**) 02-19-2006, 10:05 PM

well, i have no credit cards after I paided off the last one that was it, that was about
10 years ago.
then I paided off my car
and then my house.
I have a debit card that I use only for travel.
Good luck on your goal JoyJoy life seems just a little sweeter when the only person you are working for is yourself. ( well at least thats my viewpoint anyway)

Tree0164 · #39 (**permalink**) 02-20-2006, 02:00 AM

What did you do after you paid off your credit card debt?

Trying to build an emergency fund and increased our retirement savings.

What cards did you keep and why?

I keep one for travel expenses for my husband that are reimbursed. We use the debit card for the majority our purchases. Rarely cash.

How long have you been debt free? (not including the mortgage unless you have paid that off too). Credit card debt free since July 2004, do have a car loan that we took out in May 2005.

JoyJoy · #40 (**permalink**) 02-21-2006, 03:42 PM

Quote:

Originally Posted by elcheapo

well, i have no credit cards after I paided off the last one that was it, that was about
10 years ago.
then I paided off my car
and then my house.
I have a debit card that I use only for travel.
Good luck on your goal JoyJoy life seems just a little sweeter when the only person you are working for is yourself. ( well at least thats my viewpoint anyway)

Thanks elcheapo! I'm feeling good vibes already knowing that soon and very soon this nightmare with the credit card debt will end!

Congratulations on paying off your cards, car and house! WTG