Moving along well..

Before, when I posted last, my bills were higher, after almost six months now, they are all coming down nicely.

Freecreditreport has my fico at 698. When my name’s ‘clean’ I won’t care about Fico anymore, but it is kind of like a ‘report card’ after having been at the bottom in 2002 of 520. this feels good. Conidering my annual income is $17,335 this last year.

Now, I have a signature closed end loan from my FCU with which I was paying off window treatments for the house. it is just about paid off (YAY!) I started off with a balance of 4700.00 a little under three years ago and am now at 688.40 USD. I see it as three months from now that will be gone.

My Penny’s and another small debt will also be gone, leaving a target card with a balance of $2889.56. They charge an APR of 22%

Question: Once the FCU loan is paid off, that will free up $200.00 a month. Should I pay off target with this, or should I get another closed end loan from Kinecta to pay Target and get the FCU’s 13% APR? Part of me wants to do that instead of Target getting that 22%. Any thoughts on this? Considering that $200.00 plus what I pay Target anyway would be going to Target without the SCEL that’s about $285.00 a month I’ll be paying them. That means about 10 months at 22% or 3 years at 13% if I were to do the SCEL. My other thought is yeah, get the SCEL and pay THEM early, but not at the higher APR.

I know going for another SCEL would be good interest-wise, but is there any other considerations I might be missing?

Congratulations on all your hard work! You’ve done a great job. I don’t know what a SCEL is so I can’t help you there. What I did was put all my things in order from highest interest rate to lowest. I’m paying off the highest interest rates first.

AH, my need to abbreviate :-) SCEL is a Signature Closed End Loan. It’s not lie a mortgage or secured, but the Federal Credit Union would pay the cards off, and I’d pay a set amount for 1-2-3- years. SCEL was my initials for the Fed. credit union’s loan.

Last night our dryer died, so there goes $329.00 for a new one. This was 18 years old an the electrical went in it :-(

At this rate I will never be able to get $1,000.00 built up.

I think I’ll do the signature closed end loan. That’ll be easiest with only one bill per month instead of three different ones. All of them are the same due dates, so….

Before you consolidate with your credit union, you should make sure a couple things happened (coming from a voice of experience):

  1. that your new interest rate isn’t super high (once the promo expires)
  2. that you close the credit cards you have AT THE SAME TIME you transfer the balances
  3. that once you get your little emergency fund saved, you pay more than the minimum (which will likely be less than you are dealing with now)

I consolidated my credit cards with a CU loan and I didn’t close them. So now, I have the same amount of CC debt I had last January AND that old debt on a CU loan.

It took me closing all my cards to stop having emergencies that required me to use them all the time.

Good luck. Do what you think will help you sleep at night, and help you get this debt paid off. Those are the two most important gauges for any decision–until, of course, we’re all out of debt!