Posts tagged Better Business Buearu

Debt Consolidation & Reduction

After checking out a debt consolidation company’s website &  the Better Business Bureau’s website, my dad decided to give them a call. I helped him print off all the credit card accounts that we have access to online & helped him get everything in order. My parents have two options to choose from. One that has a much lower payment per month, but will probably negatively affect their credit score. Or one that has a somewhat lower payment per month & probably won’t hurt their credit score. They’re obviously going to take the second option. This option will lower the amount they are paying now towards their debt & will help them get it paid off in 5 years. However, they will not be allowed to own any credit cards. I don’t see a problem with this, but my mom did. She thinks everyone “has” to have at least one credit card. I explained to her that no one “has” to have a credit card & there are many people who have taken the road less traveled & choose to live without one. The perfect example is NCN over at No Credit Needed. He doesn’t use credit cards & neither do a lot of people. There’s a lady that works with my aunt who doesn’t even have a debit card. I know this because back when I worked for a department store, we had this “event” we had to sell fragrance & cosmetic items for & this woman was nice enough to order a few items from me. The only problem was we needed a credit card or a debit card number to charge on the day of the event. She explained to me that she had gotten herself into some trouble with credit cards. After she got herself out of the situation she was in, she vowed never to use a credit card or debit card again. She said it was just too great of a temptation.

I think she’s right. I too sometimes get the urge to spend what I don’t have. I love cosmetics, even though most of them are not good for the enviroment, & I love electronics! I’ve had several different brands & styles of cell phones since I first got one at age 18. I have a habit of wanting to have the newest & best out there. I know I don’t really need these things, but these are some of the things that sometimes drive me to spend money I don’t have. That’s why I think it’s great that my parents won’t be able to use credit for a while. Maybe they will find out they’re much happier without the cards & choose not to get new ones when they’re able to. I would love to go back to the days when I didn’t have a credit card. It’s much easier to talk yourself out of buying something if you don’t have the money or the ability to charge it. I think once I get my credit card paid off that I will cancel all credit cards & try going without them for a while.

And since we’re talking about credit cards…

I posted earlier about my Citibank card offering a 0% interest rate on any balances I transfer until March 2009. I did go ahead & transfer my balances over. So now I only have one card with a balance!!! I can’t really consider my other accounts paid in full until the balances are paid off on the Citibank card, but at least it’s just one payment now instead of several. This should make my budgeting a little bit easier & hopefully I’ll be able to pay extra money towards it since there’s no interest. Once the credit card is gone I can focus on paying off my auto loan. That would be awesome! It’s been several years since I haven’t had to pay a car loan. That is definitely something I’m looking foward to. And I have every intention of driving my vehicle until the wheels fall off, so to speak. I don’t want to have another auto loan for a very long time!

[Edit: Asgreen over at Always The Planner has made reference to my post & has done some research about a company called Freedom Debt Relief. Thank you for the mention! 🙂 The company that my family is using is called Amerix Corporation. They have a satisfatory rating with the BBB. ]

Advertisements

Comments (2) »