Archive for February 4th, 2010
An Update on My debts
| Debt | Interest Rate | Amount Owed |
|---|---|---|
| American Express | 3.99% – until paid | ~ $5,800 |
| Home | 5.75% – until balloon February 2011 | ~ $135,000 |
| Truck | 4.49% | ~ $5,100 |
| Car | 3.99% | ~ $9,400 |
| Camper/RV | 8% | ~ $17,000 |
| Student Loan | 3.5% | ~ $12,000 |
I said the following at one point here on the site, and it turned out to be so true. Although my rates haven’t changed, more than one of my friend’s credit cards had favorable rates that were supposedly "locked in" and which subsequently jumped nearly 20%. Therefore, despite the lower interest rate, American Express remains the focus of my debt payoff plan. Once it is gone, I will start work on another debt. (Which will either be my RV or my home.)
The thing is, I would like to pay off the camper before the American Express bill because the interest rate is so much more favorable. However, with the current state of the economy and the ever-changing nature of credit card agreements, I worry that my American Express credit card terms will change drastically and unexpectedly and I’ll lose that lovely 3.99% interest rate until the balance is paid off….
I have friends who are dealing with unscrupulous credit card companies right now and I have little faith in them myself these days. My biggest fear is that before the new credit card agreement rules go into effect later in the year, many credit card companies might try to take advantage of as many loopholes in the credit card agreements as possible to keep from having customers locked in with very favorable terms long-term.
