Wednesday, March 3, 2010
July or August, write it down.
I went to pay my HSBC card today. lps 7,1000 . About 5000 went to interest. I hate that and it's all money that I will never see again but I keep telling myself this is just more and more of a reminder to me about not going so deep in debt in the future with nothing to show for.
With HSBC there is no negotiating, they want me to pay their credit card rates or pay the full amount. I can't do the second right now so I'm just paying the minimum until I can hit it with more.
So as I was driving back I was thinking about which cards I will cancel when I can. I have two cards with BacBamer, one with HSBC, one with Promerica, one with Citibank and the latest one with Ficohsa.
The BacBamer ones are the oldest ones and the ones with the most benefit to me, although lately the've become a bit tougher but I can understand given my recent payment history. I would probably keep those in my desk drawer for travel or for medical emergencies.
Ficohsa card is one i'm using for business transactions and it has an extrafinancing on it that is basically paying itself from the selling of Honduran goods to relatives in the US. So I would probably keep that in the short term but would let it go or keep paying the full balance when I get down to 0.
HSBC is going to go. I don't want to have to deal with them ever again. They aren't bad, they just don't care about me as a customer. Even a replacement card took two months and I just took it to cash my points with them.
Promerica and Citibank are the cards on arranged payment schedule. Meaning that i've talked with them and told them that I want a payment plan and then I would want to turn in the cards.
Promerica was very quick with that and I don't even get a CC statement, it's totally turned into a loan now. However the last time I was trying to see if I could extend my payment term to them they pulled a different number than I had, about 4000lps higher. I think I will come into their office with my receipts and settle the number before it's too late. This card will go too. They've been nice with customer service and everything but for some gut reason I hate them. It must be the 8000lps I have to come up with every month to pay because they gave only 36 months to pay back instead of 48 like Citibank.
Citibank cut me the same deal, however they keep sending me CC statement and actually turn my payment plan into an extrafinancing. So they seem to want to keep me as a customer. However that was probably back when it was Banco Uno. Lately I've seen them become more like HSBC. They want their money and little room for negotiation, period. I can understand that but I don't like it so they are going to go too.
So the reason for the title is that I was checking my balance on my company coop loan and the expected balances on my "loans" from Promerica and Citibank. It seems that on either July or August I can request a new loan for about 120,000lps, which wouldn't affect the take home pay amount I have right now (previous loan was 118,000). WIth that money I could pay the balance on the previous coop loan, which is a requirement, and I would have almost the exact amount to pay either Citibank or Promerica, for some reason they will both have balances of about 75 to 80k lps at about that time.
Going the completely opposite way of how I was going about two posts ago. I'm thinking I want to pay Promerica. even if they say I owe them a couple thousand lempiras more in late fees or so, I could still pull that from my emergency fund and be done with them. That would free up 8,000lps a month to:
1- Get back on schedule with Citibank (currently one month behind every month), this would take about a month and a half
2- Pay more towards HSBC and get rid of them ASAP.
3- Save more in my emergency fund and freedom accounts
I could pay Citibank back instead of being tied to them for another two years but that would only lower my outgoing cash flow by 5,000.00 , and i'm always a bit concerned as to how long I will be able to keep the morning job. Not that I'm bad at it, but since i'm on contract it would be easy for them to let me go.
I sure appreciate your comments and they definitely don't fall on deaf ears.
Posted by AJ at 7:35 PM