Friday, March 09, 2007

We Were Almost Caught In The Credit Card Trap...

With all the hoopla going on about NCN being featured on the Jean Chatzky Show on XM radio, I thought I'd share our near "trapped in credit card debt" experience. A few years back, my wife and I had about 2 years to save for a wedding, honeymoon, and a new home! At that time we were making decent money, a bit higher than average for Jersey. But that still didn't seem like enough for what we wanted.

We eventually decided to stretch it out and settle for a nice wedding and a condo. That's pretty much where the money ended, even with all of the wedding gifts. All of the condo updating like paint, new kitchen cabinets, new electrical, new furniture, etc. was paid for by credit cards. Luckily all the cards were newly applied for, and all of them offered zero percent financing for a year. After everything was said and done, we had gotten into a little over $15,000 in credit card debt! We had NEVER been that far into the hole before. For me it was something like 1 or 2 grand at the most, and my wife about the same.

I have to admit, I felt a little trapped. We had planned on saving for a house for the next five years. With that amount debt, I was afraid we wouldn't make it in time. Me being the over anxious and worrisome type, I wanted to climb out as fast as possible. With any hooks, ladders and ropes I could find! At one point I considered perhaps getting a short term loan at a National payday place thinking I can pay it off much faster and not have the debt show on my credit report, but I didn't know much about them at the time, so I stayed away.

By staying patient, focused and managing our money well, we were able to climb out of the hole in a little over 6 months. After cutting up the cards, we never looked back. Now all credit bills are paid off every month, with no charges, we maintain a excellent credit rating, and we get cash and valuable rewards by using them. Now here I am, trying to climb the financial ladder...slowly...but surely.

3 comments:

moneymonk said...

$15K in 6 months, WOW! Congrats to both of you.

Credit cards can be a trap, especially when they only allow you to pay 2% of the entire debt a month. Im glad you avoided a loan to pay off the debt.

What about the honeymoom? did it ever took place ?

John said...

Yes, and it was very nice. Aruba for a little over a week...

Payday Loan said...

Since credit cards are good to build your credit but still you can be trapped....