Independence

me: I can’t afford my contacts.

  w/o using a cc
 A: i can’t afford a hair cut
  we suck
  
 me: haha, we’re pathetic
 A: lol i know
me: welcome to being 20-something and independant.
 A: 20-Something: It’s Not As Fun As It Sounds 

So right now I’m very concerned with my grown up finances and paying things off and saving money and still being able to have fun.  I’ve always been a money saver.  It’s what my family knows me as…but when I moved here, those funds were quickly dried up.  I am now back to saving money, as well as paying off a credit card and student loans from grad school.  Luckily I have no undergrad loans as I have a very generous family.  They would have paid for grad school too if I’d let them, but when I was looking at grad schools they said they would not pay for it, so I held to that, although they offered.

Since I am in the process of paying off loans and a cc (I’ve been good about never achieving an extraordinary balance), I have taken interest in both my spending limit and my interest levels.  Of course, your spending limit increases when they feel like you can handle spending more money, which I suppose is flattering, but I for no reason need to spend so much money that I don’t have, so I called and had my credit limit decreased by over 50%.  While I was on the phone, I also thought it may be worth my time to ask about getting my interest rate lowered, because, all it really takes is asking…

As of my last billing period my interest rate was 17.55%.  That is effing insane!  I was given 2 choices, have it lowered for the life of my cc to 6% + the market % or something, bringing it to about 12%, but it could fluctuate as that second percentage changes, or I could lower it to 7.99% for the next 7 months.  After that 7 months I will have to call again and have it lowered again.  Hopefully in that time though I can pay it off and close it.  To me it makes the most sense to pay the lowest percentage possible, if this is by way of a temporary interest rate, so be it.

As for my student loans, I have 2.  1 for each year of grad school.  My interest rates on those are quite reasonable.  My min payment a month is significant and scares me a bit, but if I pay the minimum it will take me 10 years to pay off my loans.  Because of this I pay more.  Not much more, but it’s what I can afford.  I’d like to pay these off in 5 years, here’s hoping for a raise!

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2 responses to “Independence

  1. FYI, you should probably NEVER have a credit card limit decreased because that in turn decreases your overall available credit and again decreases your credit score. You did good on reducing the interest rate though, good move there. Don’t close your credit card account when you are done with it either, just shred it if you don’t want to use it. Having a $0 balance on a credit card is much less detrimental to your credit score than closing an account.

  2. So speaking of grown up finances…I have fairly a fairly high balance on my credit card. I should have apid it off with my last paycheck…but instead I dropped over $5000 on furniture and electronics. I guess my point is even though I make enough to pay off everything, I’m no more adult about it.

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