What’s in *your* wallet?

July 25th, 2007

What’s in your wallet?

Over at My Two Dollars last week, David started a “Start digging out of credit card debt challenge” for his readers who still have credit card debt (over here… me… over here… thanks). I decided to take part last week even though I am already working on my credit card debt and dedicated to digging out because I was sure there would be new ideas and tips I haven’t thought of along the way. Last week was basically gathering up the cards, figuring out how much owed on each one, only having one (lowest interest rate no balance) in your wallet for emergencies (true emergencies not fun), and of course, STOP using the cards. I’d already done all of those things so I was feeling like I was off to a good start.

This week’s challenge was calling your credit cards and requesting a lower interest rate. I knew that this step was coming. I knew it. Seriously, I am a big wuss about stuff like that. I have been telling myself for months I should do this. I always pay on time, my record with them is great, but…. well, I’m a wuss.

So, anyway…. this post is to thank David for giving me the final kick in the pants I needed. After seriously pondering it (and working up to it) for the past two days, I called Capital One this morning and requested a lower interest rate. I explained that I had recently gotten a 2.99% balance transfer offer from my Bank of America card where I have no balance (true actually) but I liked Capital One and the ease of use of their website (also true) and so I would like to stay with them and not switch (not quite as true), but I can’t ignore the difference between a 10.9% rate and a 2.99% rate.

And it was a moral victory for me! Not a whole lot of financial progress but I did it, I called and asked, and I am proud of myself. I did it! And you can too. If I can, really, anyone can. The worst that happens - they say no. And even if they do I bet you’ll feel proud of yourself for leaving your comfort zone and doing something proactive. I know I do.

They did actually lower my interest rate from 10.9% to 9.9%, so that was good and will help a wee bit for however much longer I have a balance on this card. They also told me I should take advantage of the balance transfer offer from Bank of America and then start using my Capital One card for purchases lol.

I may indeed use the Bank of America balance transfer I referred to if the Citibank card we applied for with the ‘0% interest on balance transfers for 12 months with no transfer fee’ offer doesn’t pan out. 0.0% beats 2.99%, especially since the Bank of America card has a balance transfer fee of 3% of the transferred amount with no upper cap. But that is its own separate subject. There are a few variables to take into consideration and tweaks to sort out that deserve a more detailed discussion.

Thanks David! Sometimes we all need a kick in the pants. I look forward to next Monday’s challenge.