BECOMING DEBT-FREE/CREDIT CARD #1

BECOMING DEBT-FREE/CREDIT CARD #1

As I mentioned last week (click here to read), there are some steps that need setting up before you start blindly paying off shit. They help you get to this point in the process – which credit card should I pay off first? Some of you may be going, “How many fucking credit cards do you have!?!?” to which I reply “eight with balances on them.” I’ll wait for you to pick yourself up off the floor. In all fairness that’s between both AFH and remember, WE WEREN’T TAUGHT ABOUT FINANCE. We share two, I have four additional and AFH has two. Two of the four I have I keep around because I’ve had them for 12 years which helps with my credit score and they have low balances and low APRs on them. So, let’s get into card #1:

Name: Bank of America Cash Rewards Credit Card
APR: 21.49%
Limit: $24,000
Current Amount: $8,514

How did we get here: We opened this card together in December 2013 when we were newly engaged, gazing adoringly into each others eyes and conveniently not hearing the APR rate, just in love with the idea that we were getting our first joint “anything”. Fuck. It was at a zero balance in 2014 because we’d managed to pay it off but then 2015 happened. Our basement kept flooding and so we needed a french drain/dehumidifier system installed to prevent our house from falling into the ground ($7,000), various medical bills including the birth of our two kids ($12,000 – that shit’s expensive and I had GREAT health coverage) and some half-yearly payments to Progressive Insurance ($3,500) which increased like crazy because AFH had a rough 2016 and 2017 where he kept getting in minor accidents. We would attack this balance as much as we could but as mentioned in previous articles, kids happened and those little fuckers are costly.
How are we going to get out of it: The APR is stupid high so I did a zero balance transfer onto a new 0% APR Discover card last year to help us out as the interest payments were killing us (that card is currently sitting at $11,000 and some change but the minimum payments completely pay off the balance as we’re not going to be charged interest until July 2020). So, this BofA is our #1 payment right now. All other credit cards are getting the minimum. ANY spare change we get, any unexpected windfall and any money left in our checking account on payday from a previous paycheck is going towards it. At the end of each month I’ll report whereabouts we are and how we got there. Meanwhile I’ll be sitting here rocking back and forth in a corner like a rhesus monkey muttering, “this is going to work, right?” – FemaleGG

A blog/website where these happily married, 30-something parents of 2 little minions rant, rave, and speak in tongues. Raw, honest, and riddled with profanity. Get on board and let’s make The Ghost Generation awesome together! http://theghostgeneration.com Twitter.com/Gh0stGeneration

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