Credit Card Debt/Finances Update – paid off another card!

After starting with over $51,000 in credit card debt on three cards, I am now down to $32,000 on one card!

Credit Card Debt:

American Express: $31,997

My interest expense on that card is about $250 a month, so maybe my interest rate is higher than I thought? I thought it was prime plus 3%.


Never again, I promise!

I have been able to make bigger payments than I originally budgeted for the last couple of months because I am rarely paying camping fees and my dining out expenses plummeted to almost nothing. I also sold my car (to pay taxes), so was able to drop the insurance and maintenance expenses of that vehicle. (When my permanent address moved to David’s house, our insurance also dropped on the RV and his car.)

I believe I am now upside down on my mortgage in Austin, as I owe about $238K and my new county tax appraisal dropped for the second year in a row. They say my house is now only valued at $225,400. (My lot is valued at $223K and my ‘improvement’ is only valued at $2,400! My house is only worth $2,400!?)

I am clearing (less property management fees) about $1,400 a month on rent. My payment is $2,020, but taxes should drop that just a bit (and I’ve now overpayed my escrow account for the year.)

Hopefully I can keep up with some big payments on that last card. If so, I’ll be out of (credit card) debt in one year!

I am trying again for a refinance on my home mortgage, as I have 6.75% fixed rate on it right now. (I was declined last summer.) I may have to do a cash-in refinance, though.

My plan for now is to start making huge payments on my mortgage (after my credit card debt is paid off) to try to get that paid down in 15 years or so. It is a central Austin house, which I believe will be a good long term investment. If I can do that, then I’d have a paid off, income generating asset by the time I am 55ish. (I’ve had stocks go to zero, so am more interested in investments I can understand and that have some inherent value!)

I’m almost 40 and net negative now.

Whew. My brain hurts.

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