Day 4: Working on Our Game Plan

Today, I started looking at ways that we could more quickly pay off our debt.

We're trying to increase our credit limit on one of our lower interest cards so we can transfer the balance from our high-interest Target card to something lower. Even our lower interest rate cards aren't that low, but 14.25% is better than the 24.24% that Target charges. It would be even better if we could transfer it to the 8.99% card that I carry, but we maxed it out and they already increased our credit limit for an emergency in January, so we're kind of out of luck on that one. Because I am carrying such a high limit on my credit card, I don't think my credit union would approve us for a consolidation loan, otherwise I'd consolidate all of our higher interest debt into a personal consolidation loan at 10.99%.

I also looked into consolidating my student loans. My interest rates actually aren't too bad on my loans. They're exceptionally low, and I'd like to lock that in. I was looking at filing the consolidation application yesterday and read that the interest rate on my variable rate loans is actually supposed to go down on July 1, so I'm holding off on consolidating. I'm not 100% sure that I want to consolidate them anyway, if it means changing my payment plan and term of the loan.

I was also looking into refinancing our house, but after looking at the interest rates, closing costs, and the amount of time we anticipate staying in our house, I don't know that it would save us any money in the long run. Part of me wants to just stay in this house and pay it off so we don't have a mortgage anymore, but the other part of me wants something bigger and more convenient. I mean, if we're paying this much for a home, shouldn't it be a home we like? Once we get our credit cards paid off and start saving the amount of money we're paying every month, we can evaluate it a little more.

Speaking of credit cards, I have never really paid attention to what our monthly interest charges are on these cards. It kind of made me sick to really look at our statements and see $100+ in interest per month. Credit card companies really are out to keep people in debt, and people like me keep buying into it. I sometimes wonder how much people look at their statements and wonder if everybody else is perfectly content to remain oblivious to how much money they're giving the big, bad banks every month without batting an eye.

My husband and I had a heart to heart conversation about money tonight. It's sometimes difficult for us to discuss because we both feel attacked, like the other person is blaming us for the financial mess we're in. The fact is, we both have our vices and we both see no problem with spending money on our vice, but hold the other person responsible for spending money on theirs. During our discussion, I told him that we needed to be on the same page to improve our financial position, and he said that we were on the same page. Only time will tell.