Credit Card #1 has been a thorn in our side for over two years. We have a huge balance at a fairly high interest rate we have been chipping away at, but it’s been slow going. Right before the new credit laws went into effect, the company increased our interest rate by several points even though we’ve never missed a payment (on anything, ever) and always pay more than the minimum payment. This company has also slowly but surely whittled down our credit limit to where it’s always barely over the amount we owe, and we’ve taken a ding on our credit score every time they “re-evaluate” us.
Over the past few months we have received several offers for 0% interest credit cards, but haven’t taken advantage of them because none of the offers were enough to cover the balance on Credit Card #1, and the length of the promotion was never enough that we could pay the entire balance before time ran out and the interest rate jumped right back up, usually to a higher rate than what we currently pay.
That changed yesterday though with an offer from the bank/company that handles our homeowners and car insurance. We were offered 0% interest until September 2013, and a credit line that more than covers the remaining balance on Credit Card #1. Since our goal was to have the balance paid in full by June 2013, this more than works for us. We have been paying nearly (or over) $100 per month in interest on the balance, but now every last cent each month will go to paying down the principle!
I would have like to have added on the student loan and Credit Card #2 balances so we could have just one payment with no interest every month, but we didn’t get enough of a credit line to cover those as well. However, the interest rate on the student loan is only 2.9%, and Credit Card #2 still has a very low promotional rate and will be paid in full by the end of April, so I don’t feel too badly about leaving them alone for now. The orthodontist balance is already interest free and will be paid in full by the end of June so there’s no sense in moving that one either. But we will be done, done, done with the Credit Card #1 bank for good!
Patience does have its rewards!
P.S. Don’t forget to enter the Kiwi knife giveaway for a chance to win two sharp, versatile kitchen knives.
Happy dance for you! I bet there is also some satisfaction in not having to deal with the other credit card company anymore.
Wonderful news! I am so happy that this works out so well for you! I bet with that extra $100 going to the payment, and not interest you will be even more motivated to get it paid off quicker. I wouldn’t be surprised if you get rid of that debt faster than expected. Sounds like you are on track to have a great year!
Yay! Once in while the stars align and it all works out!