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    DRAGONCHILDE   56,424
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Exercising my Wallet

Monday, January 28, 2013

Now this isn't what you think. ;) No, I'm not spending money I can't afford.

I visited a financial advisor today! I contacted one to explain that I'm poor folks, but I still want to manage my money properly. You see, we're planning this year to buy a house, and move. The one we're in is broken down and unhealthy, so it's not worth keeping anymore.

Part of this is preparing for the financial strain and making some smart decisions. After consulting with the advisor, here's what my action plan is:

1) Apply for a 0% APR card to transfer my largest credit card balance (or as much as I can) to stop taking the insane 19.24% interest rate hit.
2) When my tax return comes in, pay off my lowest credit card balance. That's less than $1,000, but has an APR of 22.90%! It's going, and staying gone.
3) Save 5% of the estimate purchase price of our house for an FHA loan.
4) Pay off the main credit card balance. By snowballing my lowest credit card payment, I can pay that off by the end of the year.

So my first step has been taken. I applied for (and was approved for) a Discover It card... 0% APR for 14 months on balance transfers. Goal is to have that paid off in 11 months. I don't know what the limit is on it yet; I'll call later tonight. :)

So here I go. I'm getting physically fit... time to get financially fit.
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  Member Comments About This Blog Post:

SWEETMAHA 2/1/2013 10:49AM

    great job emoticon

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JADOMB 1/30/2013 12:59AM

    Yes, be sure to read the small print. Although on the surface, it sounds like you have a great plan. I'll pray that things work out for you guys.

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BILL60 1/29/2013 6:03AM

    Good for you.

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OBIESMOM2 1/28/2013 8:28PM

    sounds like a plan! I know you can do it.

make sure you read all the 'gotchas' (often there is a percentage fee for balance transfers). I usually have DH read it after I do to see if I missed anything because I find the wording so confusing.

1SOD made a good point. I have a reminder pop up every 4 months to run my free credit report. It's a good way to keep tabs on identity theft.





Comment edited on: 1/28/2013 8:30:21 PM

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1STATEOFDENIAL 1/28/2013 7:53PM

    If they didn't do this, you should: pull your free credit report from 1 of the 3 credit reporting agencies and review it closely. Make sure everything on there is correct and accurate. If there's anything wrong, get it fixed ASAP. A few months later pull another report, then a few months later pull the last (each of the 3 agencies gives you 1 free report a year). Making sure there is correct information on there is essential in having a healthier credit score. Having a healthier credit score allows you to get a better deal on a mortgage. Also, know that every time you open a new credit card or close an old card your credit score takes a hit, so get the credit card issues taken care of then don't open or close any accounts for a few months, preferrably a year or two before trying for a new loan.

Also, months before you're actually ready to buy a house, start asking around for a real estate agent. Don't just walk into a place and ask for one (I made this mistake and ended up with a moron loser, causing me to wait another year so I could get a new agent), ask friends and family for recommendations, then interview the agents to find one who fits your personality best.

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MERRY_XMAS 1/28/2013 5:34PM

    emoticon emoticon

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KATRINAKRAUT 1/28/2013 5:33PM

    The two go hand in hand. Good for you! good luck.

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