[StBernard] Reps. Maloney and Gutierrez hail Subcommittee passage of Credit Cardholders' Bill of Rights

[Westley Annis]

"Washington, DC - Reps. Carolyn B. Maloney (D-NY) and Rep. Luis Gutierrez (D
- IL) hailed today's passage of the "Credit Cardholders' Bill of Rights,"

Jer Responds:

Credit/Smedic!

In my earlier years, I too, feel into the credit card crunch and felt every
bit entrapped by the state of my economy in which I had placed my life's
finances.

Like many, I built up a "card of houses" in which I had more credit cards
than can fit in 2 or 3 wallets. In my earlier youth, I believed that credit
was cool--that having more than 20 cards was a prestigious endeavor and
loved to end my suffering by stopping everywhere and shopping anywhere
knowing my impulsive nature could make me as happy as a "slob eating in a
fast-foot restaurant".

Buy now and pay later was the order of the day and at a specific point, I
realized I owed $30,000 in credit card debt and the things I had purchased
earlier had either "worn down" or faded away and I bought another material
object to replace the former. However, yes, I still owed on the cards. The
cards grew to 18%, then 21% and 24% and beyond making the payout only
culminating with Aladdin's Lamp and a Genie's wish.

The principals on the card were hardly matched as every payment was made
either with the minimum or with a double minimum but at no time were the
credit cards becoming paid down. Too much interest was being added and no
principal. I was getting nowhere. To help ease on the interest percentage, I
"negotiated" with the card banks. In many cases I told them I can get a
lower percentage with "x bank" and I found the interest percentage dropped
3-8% just in this maneuver. I also found a low-enough bank percentage (for
example one charging 14%) and had them buy the other cards (consolidating in
that respect) debt. So now I had one card with a 7-12% rate reduction.

It helped for a while hut I wanted to take it further since I still owed a
lot.

I was beginning to fall behind at one point and I needed to make a serious
decision that was workable and feasible.

I used my bank and a second mortgage (as collateral) to make a personal
loan. I figured the smaller % charged to be about 1/3 to 1/4 of the interest
charged. With the borrowed money, I was able to pay out the loan. Within
about 10 years, I paid out the second mortgage and found I could save
additional money in which I could apply the savings of adding $100-200 a
month extra to my original mortgage. By writing, pay an extra $200, for
example, to the mortgage principal, the first mortgage was paid out about 4
years ahead of time (and I started with 10 years of my mortgage remaining).

Now I had a debt-free mortgage. I loved the freedom of $500 a month on
mortgage payments.

Then, came Katrina a year later and the home was demolished forever.

Believe that many millions were and are plagued over credit card debt as I
was. Today, I am credit-card debt free and use one or two for convenience,
but pay the entire charge each month leaving a zero balance, and
subsequently, no interest added.

It worked for me, can't say everyone as individuals have to make decisions,
adhere to a strict plan and pray a lot while envisioning a debt-free credit
card life.

--jer--