Opinions Wanted...

[Frugal_Cheap_Pants]

The Information:

I sold my MP3 player on Ebay...I bought it last month from Dell...charging it on the Dell card...I have 18 months with no intrest on that card. I have various other credit cards which carry balances and intrest rates...

The Question:

Should I apply the $100 from the MP3 player to the Dell card or to another credit card?

I don't want to waste this money or the opportunity to apply it in an effective/useful manner.

[abowers]

Out of curiosity, why did you sell your Mp3 Player 1 month after buying it? You could use the money to pay off another card with a higher interest rate, if you know you'll have money to pay off the Dell card before the interest rate increases.

[Frugal_Cheap_Pants]

I sold it because I felt really bad for buying it...I didn't really need it....I didn't really want it...and I don't like the idea of paying monthly fees to download music to it...It was yet another irresponsible purchase.

I am working really hard to break this habit. I wish I could get hypnotized or something to stop spending needlessly...lol...I think quitting smoking was easier than not spending money!!

[lrjohnson]

Frugal-this mind trick has helped me not purchase things, maybe it will work for you a little: I "decide" I'm going to get an item. I comparison shop, I get excited, I get into it. For a few days or even weeks, I "know" I'm going to treat myself to that item. I luxuriate in my soon-to-be-ownership. And, sometimes, that's enough. I know it sounds werid. I do it with restaurants too; days ahead I decide on the burrito, then the quesadilla, then the menudo. By the time I get there, I've "enjoyed" all three dishes in my head. For me I think knowing that's it's possible does it; I can only play this mind trick with things I could conceivably get, not big ticket items beyond my reach. It can make shopping less awful; instead of "I could never buy a $400 antique dresser" I think, "Boy, beautiful dresser. Where would I put it? Does it match? Will my sweaters fit? How can I get it home? What is this stores hours" And somehow, knowing it COULD be, takes the edge off the longing. And, if a few weeks later I do decide to go ahead with a purchase, I've tried in on for size in my head. I've been "about to" buy an MP3 player for about a year and a half now. Good luck.

[robex]

lrjohnson, that is a great idea on how to save yourself money! I hate hearing parents tell their kids at the store that they can't have something because they can't afford it...pet peeve of mine. When our kids want something that we're not willing to buy them, we let them know that although we can afford it, that's not what we're choosing to spend our money on. They have never whined or argued with this answer. I figure if it's really worth it to them, they'll spend their own money on it.
Frugal Cheap Pants, good for you for living up to your new priorities!

[ISAYHI]

lrjohnson -
I noticed years ago that the only part of shopping I enjoy is putting the dang stuff in the cart. I hate paying for it, lugging it home & putting it away. I found this out one time when I had a kid crises, that required me to leave a full shopping cart. I ended up going back and only purchasing a couple of things that had been in my cart. Wierd huh?

[Ima saver]

Frugal, at least you realize that you buy these things you really don't need. That is the first step. I would apply the $100 to the credit card with the highest interest rate.

[Tree0164]

I would put it towards the Dell credit card.... why have that hanging over your head when you don't even have the merchandise any more.

Could you have returned it to Dell and got a full credit?

[abowers]

I was wondering if it could have been returned for full credit too, but assumed it was already too late. There should have been some sort of time period from Dell where you could return it.

[Frugal_Cheap_Pants]

Yes there was a time period and I missed out....I spent most that time feeling guilty over the purchase....I like the idea mentioned earlier by lrjohnson. This purchase was a spur of the moment thing and I felt bad afterwards and it ended up being something I didn't really want/need. I am sure I will be struggling with this for a while. It's hard not to shop...especially online...I guess I need a hobby.

As for the money, I still can't figure out where to put it...The Chase card has 26% intrest...the Dell card is still intrest free for a while...I have to put it somewhere and QUICKLY before I go buy something else I don't need...

Thanks for all the input....it really really helps!

[Tree0164]

With chase being 26% interest , I would put it towards that. You really need to think about getting that lowered.

Also do you have anything esle to sell?

[Ima saver]

26% interest!! That is terrible. Pay the $100 on it and have a garage sale. How much do you owe to Chase?? You must get this paid off.

[Frugal_Cheap_Pants]

Sadly, I have 2 other cards that have horrible intrest. I'm not sure why. Our credit is good, nothing on the credit report...payments are made on time...

I owe a little under $1,700 on the Chase card...I have a plan in place that will have us paying that card off in November...I must be diligent and stick to the plan!

[Ima saver]

Gosh I sure hope you do. Do you know your credit score? Do you get offers to transfer your balance to 0 % interest cards (or low interest) I get those almost every day. You should not be paying more than 12% interest if you have good credit.
Could you shop around and find some cards with lower interest rates? I am not good with computers, but I bet some one on here could help you find cards with lower rates!

[nanamom]

When I was little my Mom made us wait two weeks before we bought something in order for us to see if we really wanted it or if it was a spur of the moment purchase. Most of the time we didn't buy the thing or even remember what it was two weeks later. I would advise you to leave your credit cards at home when you go shopping and pay off the highest interest rate one ASAP. If you have anything else to sell, do so and get that card paid off. When the dell card's grace period is up, what will the interest be?

[Frugal_Cheap_Pants]

Thanks for the advice. I am working hard to curb my spending. Tomorrow I will be paying off the Sears mastercard (31% intrest) with our tax refund. I'm planning to take the $100 I was paying there and add it to the monthly payments of the Chase. I also have 3 other cards and the Dell card.

I've figured out the monthly payment on the Dell card so that I will not have to pay interest. I have it scheduled to be paid off 2 months before the intrest kicks in, just to be safe.

According to my plan, we'll be debt free by August 2007. I just have to be positive and keep coming here for saving advice!!

I have been getting quite a few of those low/no interest card offers in the mail but I'm a bit scared of them. I guess it's because, now I'm scared of credit in general!

[sweeps]

Keep up the good work, FCP.

[frugalfarmwife]

If you haven't been late on ANY card payments and your credit score is good the best thing IF YOU CAN CURB YOUR SPENDING would be to find a card that would give you a 0% interest rate and transfer your other CC's to it. I just did this with a few low balances, I got a card that is 0% interest until 02/07 and what I do is figure out what it would take to pay it off by that date, pay the minimum on the card and put the rest in a high interest savings account monthly. This way I'll pay no interest on the CC and actually make a bit of money on the rest of the payoff money, next Jan I'll just take the saved money and pay the card off

And take the 100 and pay it on the highest interest card you have!

One other silly piece of advice that DOES help to curb spending, take post it notes and write on them "do I NEED it or do I WANT it?" Put them in your wallet, on each CC you use, then you have to LOOK at this every time you go to spend, silly but it WORKS!

KJ