How To Pay Off $35,000 In Credit Card Debt In One Month

Several years ago, I put around $35,000 on my one and only credit card thanks to a home remodeling project and a new watch purchase. My “reward” was a 1% rebate towards my home mortgage, which is not bad considering $350 paid to principal is thousands in interest savings over the life of the loan.

$35,000 is the most I’ve ever put on a credit card in one month and it felt kind of odd. But, I really wanted to create a new bathroom from a closet to add functionality and value to my house. There’s an amazing amount of stuff you need to buy when building a new bathroom: wall tiles, toilet, limestone, shower heads, copper pipes, sinks, mirrors, lights, deep soaking jacuzzi jet tub, lights, light fixtures, paint, doors, crystal knobs, skylight, ventilator and so forth. $20,000 in materials adds up quick!

The watch was a Stainless Steel Daytona that cost $9,600, which I promptly sold for a profit three weeks later because a friend begged me to sell it to him! For those who know watches, the Stainless Steel Daytona is one of the most coveted watches on the market, which can’t be bought in any store. You need a jeweler, connections, or a history of purchases to gain access to this particular watch. It’s a big waste of money, but one of my weaknesses that I so conveniently categorize as a hobby to justify.

Add on all the other normal purchases of food, insurance, membership dues and transportation costs, racking up $35,000 in credit card debt in a month is just as easy done as said!

THE SECRET TO PAYING OFF $35,000 In CREDIT CARD DEBT

Small Business Credit Card Issuers: The Good, The Bad, and The Ugly

Searching for a new home. Canoe on the lakeWe all know the old adage, “you can’t judge a book by its cover.” What you might not know is that banks apparently had this in mind when branding business credit cards. You see, one would think there’d be significant differences between general-consumer and business credit cards. However, according to a recent Card Hub study, the only thing that really distinguishes a business credit card from a general-use card is the fact that a company is liable in addition to an individual cardholder.

Oh, and the fact the new credit card law (CARD Act) only applies to consumer credit cards. In light of this, a clear hierarchy of business credit card issuers actually emerges when you compare the extent to which issuers recognize the bond between consumers and business credit cards and in turn proactively apply CARD Act protections to these spending vehicles despite their branding.

Ultimately, you are left with a list of the good, the bad and the ugly business credit card issuers.

The Good

The European Debt Crisis is Still Alive and Kicking

For those with memories longer than the time it takes to read this article, the month of May is quickly approaching, and with it, the one-year anniversary of not only the “Flash Crash”, but also the moment when the European Debt Situation grabbed financial headlines, causing an immediate crisis of global proportions.  Capital suddenly flew to safe havens in the form of treasury bills and precious metals.  The Euro fell from its lofty perch relative to the greenback, and “PIIGS” was a euphemism that forever joined our daily lexicon of favored terms.

The Euro had strengthened from its debut to the $1.60 range, but the recession pulled it back.  As it began to recover afterwards, it staged another assault, rising to $1.51 until news of debt problems surfaced at the end of 2009.  In May, the full import of the debt problems became common knowledge, and the downdraft plummeted the Euro to its lowest value in four years, a startling $1.18.  Greece was the initial focus, but then the malaise spread to concerns over Portugal, Ireland, Italy, and Spain, the remaining members of the “PIIGS” anagram.

TIME TO GO ON A DIET

How One Late Payment Can Kill Your Credit Score

Don't Be LateRecently, FICO gave a small peek behind the curtain at how their scoring model works and showed just how much mortgage delinquencies affect your credit score.  The example they gave drew attention to three different FICO scores on the higher end of the spectrum (680, 720, and 780) and how one late payment of 30 days affected each score.

According to FICO, the impact of a 30-day late payment on a consumer s mortgage varies greatly depending on how high the consumer’s credit score already was.

They broke it down like this:

Book Review & Giveaway: Debt Free For Life by David Bach

I’m excited to review David Bach’s new book entitled, Debt Free For Life!  I’ve been a fan of David’s books since his very first bestseller, The Automatic Millionaire.  David writes in a very easy to understand, logical sort of way which allows readers to follow his advice easily.

I remember the first time I picked up one of his books, I was at Barnes & Nobles.  I sat in a corner for an entire hour and read the book from cover to cover.  Sorry David!  I know I should have bought it instead, but I was practicing my frugal ways at that time in my life.  Actually, I still am.

For someone who is in debt, and who has never read any of David’s books, I highly encourage you to read his latest, Debt Free For Life.  Given I’ve read practically every single one of David’s books, it’s hard for me to learn anything new.  That’s somewhat of bummer since I was hoping there would be something as innovative as the “latte factor” was 10 years ago.  Still, if you’ve only read one or two of his books and are on a mission to pay down debt, this book is perfect for you.

One of the best things about book reviews is access to an author’s mind.  I ask David five burning questions to challenge him beyond the plain vanilla, and to my delight he answers most of them quite directly.  Hope you guys enjoy the insight!  There are three books to giveaway at the end of the interview!

FINANCIAL SAMURAI QUESTIONS FOR DAVID BACH