We applied for a credit limit increase on one of our lower interest credit cards last week. I included a coversheet with the application, stating that we were looking to increase our credit limit specifically so that we could request a balance transfer for one of our higher interest cards.
They called my husband on Friday and told him that based on the information they had in hand, they could not approve us because of our high amount of unsecured debt. They asked him to send copies of both of our last pay stubs, but he wasn't clear on whether these paystubs were to try and approve us for a credit limit increase, or if they were trying to put the debt into a personal loan with a fixed term.
We discussed our options and decided that we did not want a personal loan. Although the payments would be lower, because there would be a lower interest rate, we don't like the idea of a required monthly payment that is higher than our required payment now. The interest savings would not be so great that it would be a good option for us, especially since we're trying to stick to a somewhat self designed debt payoff program anyway.
The biggest roadblock we have in paying off our debt is our desire for instant gratification. Last year we went on a great vacation on the Gulf coast of Florida. We stayed in a resort right on the beach and had a great time. We also racked up over $2000 in debt. Some of my family is going to Florida in August and they've been asking if we're going with them. It's hard because we both want to go, but also both know that it's not financially responsible or feasible for us to go. We're just not used to being this broke, and it's hard to reign in our spending.
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