So, about two years ago (2008) I made the horrible mistake of using my credit card with a 22% interest rate in order to try and get a job as a flight attendant. If you remember correctly, this was about the time the economy tanked and everything just went all wrong. So, I was already stupid for even using the credit card under the naive belief my investment in a better job would pay off and I'd be able to rapidly pay off the balance. The flight attendant plan didn't pan out and I was left working my meager hourly wage job with my hours getting severely cut. Then the business went under and I was seriously screwed and my car broke down (whipped out the credit card again). I finally got a new job and was getting back on my feet and catching up with my credit card when my car broke down again and couldn't get fixed (despite paying money into to find this out). And then I wound up moving. This included another credit card as well (but at 7% interest).
Anyway, not to bore you with the history of my credit card idiocy. In school, I had simply been taught credit cards were BAD. The importance of having GOOD credit was never explained and I really wish it would have been emphasized. So, I have very bad credit. However, I am in the process of trying to improve my awful credit score.
So, I'm going to try to make some credit posts as I pay it off. With my next paycheck, I should be able to pay off most of the Capital One credit card (about $1486 total balance). And I will be SO HAPPY to rid myself of one. That's the 7% one.
Chase, the 22% one has a much higher balance (obviously). It's at like 4K I believe. I will be calling them soon and trying to hash out a plan of some sort. Why the heck are they even allowed to make interest rates that high in the first place? I think 12% should be a cap. Or at least 15%. I mean, 22% seriously? But I had no credit at the time and apparently that was the best I could get (so how can someone with no credit get good credit if they're never on top of the payment because the interest is so insane? I know, I know. I should have made minimum purchases and paid them off right away instead of investing in a couple plane tickets for a job interview).
Honestly, I have no idea how I got the Capital One credit card. I know I WAS doing good with Chase up until the flight attendant, lay off, and car breaking down. Sadly, none of that is shown on your credit score. I'm glad they have all these credit score commercials lately, reminding people of how their credit score does affect major purchases.
I even tried consolidation, when I was attempting to join the military (because your income has to be higher than your payouts). There was something physically hindering me so I was unable to join the military, but I learned that consolidation is probably not the best thing. $150 a month, $37 going to each credit card company, $76 going to.... the consolidation company a month (after a fee to join??). It's like having three credit cards.
So, I figure it's best to pay it off in chunks at this point, which is what I'm going to attempt to do first with Capital One since it's easier. I remember reading Dave Ramsey BEFORE getting into credit debt and thinking I had my head screwed on straight for being smarter than everyone else and not using them in the first place (ahahaha, I guess that's karma for you). How the snowball effect was to work, once you get one paid off, you get another, and etc.
Of course, I'm gonna try and ring Chase this week and try to negotiate some kind of payment plan. But in the meantime, it'll be nice to have one less credit card to worry about so I'm hoping by the end of October I'll be finished with Capital One completely!!!!
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