In the last month, I have refactored my credit card debt in such a way that I am making some changes to my 2008 goals.  I have successfully opened another card and transferred $7,250 to it at a fixed 2.99%.  This past weekend, I got my lower rate (now 16.76%), previously existing card’s limit raised $700 and a 6 month low balance transfer rate on the same card, which I used to finish off my highest card (where the $7,250 came from) and put a dent in my overdraft protection
(17.9%), which I have been counting as credit card.

This refactoring means that my balances are (no particular order):

• Other debt (0%): $523.03
• Card 1 (24.24%): $0.00
• Card 2 (16.76%): $1,605.20
• Card 3 (2.99%): $7088.00 (newest card, transfer posted on statement closing date, so first payment made)
• Overdraft (17.9%): $124.82
• Auto Loan (8.59%): $8,299.01
• Student Loan (7.22%): $16.832.35

Before the current situation, I was planning my snowball to go through my Other Debt, Card 2, Card 1 and finishing with my overdraft this year. My Auto Loan and Student Loan would then have been worked on next year.  As a result of these changes, I have decided to reorder my attack to be, in order: Other Debt; Overdraft; Card 2 and Auto Loan this year, followed by Card 3 and Student Loan beginning next year.  To accomodate this, I am restating my goals effective immediately.

2008 Goals (in order for debts):

1. GET A NEW JOB!!!!
2. Eliminate Other Debt (0%): $523.03
3. Eliminate Overdraft (17.9%): $124.82
4. Eliminate Card 2 (16.76%): $1,605.20
5. Eliminate Auto Loan (8.59%): $8,299.01
6. Eliminate $10,552.06 in debt (sum of above).
7. Increase Cash and Cash Equivalents to $1,000.
8. Increase Retirement to $3,768 (by $1,650.98 over the next 9 months, including this month).
9. Increase Stock Portfolio to $500 (by $110, over the next 9 months, originally $400 but did a $100 contribution to get in on Visa).
10. Increase US Savings Bonds to $225 ($175 over the next 9 months, originally $200, but $25 bond found and not to be included in goal achievement).
11. Increase net worth to $9,783.98 ($13,209.28 over the next 9 months, represents the sum of above applied to current worth).

This restatement of goals represents an even more agressive plan, but will be easily attained once the first is achieved.  I expect to be earning the equivalent of $40-50 thousand per year, based on my current residence (which is a relatively cheap place to live).  This means if I move somewhere that costs 50% more to live, which I suspect, I will expect $60-75 thousand per year.  With any luck, I will not move somewhere cheaper, since 50% lower cost of living puts my expected income back where it started, at about $20-25 thousand per year, though I could live off about $10,000 in said cheaper area.

Thanks to these changes, I have new baselines, so I will not be stating progress for the month.

At least for those of us who truly want to get out of debt.

I just received notice from my highest interest card that a substantial portion of the balance was just paid, thanks to successfully opening another card with a VERY LOW fixed rate for transfers. The high rate was 24%, the new rate for that portion of my debt is now under 3% (better than a personal or consolidation loan).

The only unfortunate part is that the new card posted the transfer on the closing date of my March billing cycle, so I have to make the first payment in April, instead of the planned extra amount to finish off the high rate card in April (maybe I’ll transfer the rest, since both cards have the same limit).

Regardless, I am psyched about the increased speed this presents.

Oh, by the way, I have an interview in half an hour (heading out the door now) and another interview tomorrow at 8 AM… Wish me luck!!!

Wednesday night, I went online to one of my credit card companies to see if they had generated the bill yet.  I was happy to note that they did, but I discovered something that made me ecstatic…

They had lowered my rate by 5% from roughly 22% to roughly 17%, this was done without having to pick up a phone, dialing and asking (I’m a bit phone phobic, which makes that calling part difficult for me).