For example, the cards I have that currently have the highest APR’s are Orbitz (23.9%), Hooters (21.45%), Target (25.24%) and Best Buy (22.99%).

First of all, I have to admit that I wasn’t completely aware that these particular cards had such outlandish interest rates. Which is a grave mistake to make if you’re trying to clean up your credit. You have to know what you’re paying. I knew that Hooters was pretty high and Target, just because it’s Target. I did not really know Orbitz and Best Buy were though, which is another reason to keep a spreadsheet of your credit cards.

The good news is that the Target card and Best Buy card have the two lowest balances, so essentially the Snowball Method would work. I could pay those off and then “snowball” those monthly payments onto the next lowest balance. BUT, the next lowest balances, are the lowest APR’s on my list of credit cards which are Capital One Platinum (13.99%) and Juniper (15.99%). So paying in order by highest APR is not always going to work with the Snowball Method.

I think instead, I’ll go to the next credit card with the highest APR as these are not only ridiculous but a large chunk of money. The two very lowest APRs are the Chase cards that I’m on the Hardship Program with. Part of the agreement with them is that my APR would be lowered to 6.00%, but the cards are closed. I’m not even fiddling with those at the moment because the payments are taken directly from my bank account and aren’t costing me as much in interest as a couple of the other cards. I also have to keep in mind that my debt to credit ratio has to lower to increase my credit score, which means I need to pay down the cards with the high balances.

Something else I’ve realized is that after bankruptcy, you may be stuck with some pretty crappy cards that require a lot of fees and are at the bottom of the credit card food chain. Even though I waited and avoided those cards, I still ended up with a lot of cards that are not much better than the bottom ones. Yes, they’re unsecured and no they don’t have additional fees or annual fees, but all in all, they’re still pretty crappy credit card deals. I would advise bankruptcy filers to hold out for the best cards with low APRs, which you can get…it  just takes a little time and patience. Once I get these paid down, I may try for some better credit cards but as far as bad deals and extreme interest rates go, I’m pretty much done with them.

To address my two ridiculous reasons for renting instead of working toward buying I will say that buying a house is similar to deciding to have children. No one ever thinks it’s the “right” time. As far as #2 is concerned, I have decided to look harder. In my particular corner of the world, the housing arrangements vary from either really cheap and crappy to really nice and way too expensive. Yet, I know there has to be something in the middle that I will be happy raising my daughter in. Everyone knows that renting is throwing away money and I will not feel the least bit satisfied until I have some place of my own.

Still, there are things I need to get in order and here are the things I’ve come up with so far:

1) Pay down credit. I need to make a huge dent in what I owe in order to raise my credit score. This will help a great deal in getting a decent mortgage that I can pay and keep up with (which is my main concern).

2) Save a large down payment. I would like to have a large enough down payment saved up to help get a house with payments I can afford. I will need to be able to make the mortgage plus pay property taxes and insurance, which I am factoring into a monthly payment regardless of how it has to be paid. This means that I need to start saving more than the $100 I’m putting into my ING savings account.

3) Figure out my banking situation. This one is tough because I recently found out that one of the main banks that provides mortgages in my area is the small town bank that told me I would never make it as a single woman that has filed bankruptcy. I don’t wish to be prideful, but when I left that office in tears, I decided I would not ask them again for anything. Unfortunately, my parents’ realtor said that the Credit Union I adore won’t be able to provide any of the government programs for me. So either I need to start looking at other banks or I need to suck it up and eventually go back to little bank that I hate.

My bankruptcy is old enough that when combined with a clean credit report, it should be less of a problem when mortgage hunting. I am in no way delusional and know that in order to counter a bankruptcy from almost 7 years ago, I need to have perfect credit.  I really just need to save a lot more and pay down my credit cards a lot more, which seems daunting, but at one time, even acquiring credit seemed hopeless.

The biggest problem that weighs heavily on my mind is dealing with small town bank. What do you think? Suck it up…or find a lender somewhere else?

Anyway, I received an email from MyFICO regarding the results of their relationship and finances, Valentine’s Day Survey.  Although, I am not currently part of a couple, I thought this was kind of interesting.

Even though there are a number of statistics claiming that the number one cause of divorce is finances, according to the MyFICO survey, it appears that couples are finding ways to work things out financially…together. The most interesting part to me was that a) people are discussing finances as soon as the relationship is serious and b) 46% operate individually. If you think about how the typical household was run even 10 or 20 years ago, this is a good indication that we’ve come a long way (particularly women).

Of course, the fact that 69% of those included in the survey said they would not let debt ruin or affect the relationship is a little romantic. All in all, as the caption at the end states, it looks like relationships and finances are doing okay so far, and well, that’s kind of romantic too.

Happy Valentine’s Day!

1.  Chase Bank

Yes, I hated Chase Bank. Yes, I said they raped me because of the credit limit and interest rate slam. But that was yesterday and all I can do is move forward. I am still paying the monthly payments that were set up as part of the Hardship Program and even added the other Chase card to the program as well. The card was already closed and it doesn’t affect my credit score negatively; in fact if you’re having problems paying your bill I would actually recommend a Hardship Program. It lowered my interest and payments and the balance owing on the second card was actually lowered as well.  So although we’re not dating, we’re at least friends. Not BFF’s but at least I don’t break out into a rash when I think of them.

2. Canceling Satellite

I still think canceling Dish Network was a great decision. I’ve saved $70 a month for quite a while now (almost a year) and have lived just fine on DVDs. I will admit that once in a while when at my parents’ house or a someone else’s normal homes, I do miss cable television shows. Never enough to add it back though and pay the monthly fees.

3. Canceling the Land Line

What land line. I’m about to throw away the land line phone actually because I don’t ever plan on having one again. Saved at least $30 a month and this I can say I don’t miss it at all. In fact, I will go as far as saying that I think land lines in homes will become a thing of the past. Cell phones are more than capable of handling phone needs. It almost doesn’t make sense to have a phone at home AND a cell phone. I never did try a pay as you go phone, which would probably be cheaper, but since getting the iPhone I’ve become way too reliant on it to change anything.

4. Savings

I am still adding money every month to my savings account with ING. Ever since they had that contest that I didn’t win and I signed up for the automatic monthly transfer, the savings has been growing. Let me tell you, even though I forget about it, when I do think about that savings account it feels good. Knowing that you are saving instead of wishing you would each month is almost as awesome as finding free money. Almost but not really.

5. Debt

Things are getting paid off so I can see a light at the end of the financial tunnel. My medical bills are almost paid down as well as the dental bill (after setting up payment arrangements and asking for discounts). My credit cards need more work but I’m paying those down as well. Nothing is in collections and nothing has late payments so my credit score is well on its way back up.

Other News

I bought a pair of tall BearPaw boots. Kind of a cheaper version of the Uggs that I wanted, but now that I have them I don’t even want Uggs. These BearPaw boots are awesome and comfy and the warmest boots I’ve ever had. I can wear them with leggings and not freeze to death even though I live in American Siberia. I’m considering getting some for my daughter also.

I’m back in school to finish a couple degrees. I need to not only reduce my debt, but I need to make more money as well and furthering my education can only help. I know what you’re thinking. School loans are going to bring me back down into a black hole in a few years. I plan on having everything in order by then though so all I have to focus on is the school loans. I’m confident it’ll be okay.

Am I still bankrupt? I pay my bills, I feed my child, I’m happy, she’s happy. Yeah, I am kind of still bankrupt but I really can’t complain. It’s getting better for us and it’ll get better for you.

Really.

Most people post bankruptcy will want to start out with a secured credit card. Many secured cards include a ton of additional fees just to have the credit card, including monthly fees, annual fees, membership fees, and application fees. Orchard Bank offers subprime credit cards with less fees than most others.

When you apply with Orchard Bank you will answer a few personal questions before your credit is even checked to give you an idea which card you would be prequalified for. Then you can decide if you want to apply for that card. You could be prequalified for an unsecured credit card.  Here is a chart with the various fees and credit cards that Orchard Bank offers:

Because of this prequalification process, you don’t risk having a hard inquiry on your credit report for a credit card you don’t want.

Another thing to look for when shopping for a credit card post bankruptcy is to make sure, whether secured or unsecured, that the credit card and any payments you make are reported to the credit bureaus. There are many secured credit cards that do not report, which would not assist in repairing credit and would simply be a waste of money.

All in all, Orchard Bank is recommended for post bankruptcy filers and those with poor credit because of the minimal fees for subprime credit cards. Additionally, Orchard Bank is an extremely large and reputable bank which is an important factor when trying to repair your credit.

If it were a test I would’ve gotten the big fat F-. My results were actually like 17 out of 60 points and the conclusion was “becoming wealthy will be an uphill struggle” or as I interpreted it “no way in hell are you going to be wealthy”.

Luckily, I don’t put much weight in those kinds of quizzes, nor have I ever thought of becoming wealthy. I guess after actually thinking about it, I think of it like everyone does. As Dr. Seuss said, Oh! The Places You’ll Go. But, in reality I’m happy with being a little ahead of things. Not in debt. Not struggling. Able to take care of my home and my daughter sufficiently. Being wealthy would sure be nice, but not necessary.

There were also interesting notes included with the answers I selected on the quiz. Such as the statement that wealthy people are generally optimists. This seems obvious. If you have money, it may be easier to be optimistic. Isn’t there a rule that all wealthy people have to be happy anyway? It’s a little more difficult for a homeless person to not be a pessimist. Yet, being extremely optimist can hurt your chances of becoming wealthy. The explanation was that extreme optimists spend money less wisely. I think the example was “why pinch pennies if tomorrow is fabulous anyway?” This was one of the very few questions I actually selected correctly, but after thinking about it, I think I may actually be an extreme optimist. But that’s only because I’m in denial.

Another thing I found interesting was that those that are only children are more likely to be wealthy. The more siblings you have, the less chance you have. Not sure how that applies when you’re an adult and away from home except that you may be more likely to go to college with less siblings.

Something that was obvious to me though, was that attractive people make more money. I’m thinking maybe because of the confidence factor. I’m not sure. Also that married people are more likely to become wealthy and single parents are broke. Not the words of the quiz, my interpretation and pretty obvious to me.

I’m not going to give it all away. Be honest and try out the quiz. I failed it but it was still fun. Plus if you absolutely can’t sleep with a low score hanging over your head, you can take it again and pass it.  I did. And I got “Lucky you! Riches come easy!” Who cares if I lied.

I passed.

You’re on your own. And you know what you know.
And YOU are the guy who’ll decide where to go. -Dr. Seuss Oh! The Places You’ll Go

My boss scheduled it on our calendar and then went through my files himself, while I piled up all of the mustard, ketchup and butter packets onto my desk. “What happens if I need hot sauce one day?”

“Yeah,” my boss said. “Because not a day goes by that I don’t wish I had a packet of hot sauce.”

I think I annoy him. Anyway I threw it all into the trashcan after he made a comment about how hoarding starts.

I did hoard all of those packets of sauce. I also hoard money except not in a good way. I have found that lately I’ve been afraid to spend any money, like on bills. I’ll wait until the last possible second to pay just because I don’t want to pay. Yet, if something at the store is less than $10, I’ll probably buy it. Which is stupid, because an electricity bill of $200 is way more worth paying than a bunch of gadgets at multiple times that cost less than $10 but by the end of the month total $200. See what I mean? I’m so afraid of not having any money that I neglect to pay larger bills but waste money on a bunch of smaller ones.

If I’m going to be a hoarder, I would prefer to hoard savings accounts. I don’t see how I could go wrong with a bunch of savings accounts or a bunch of money in savings accounts. I think I’m going to make a point of paying my large bills early (and not when faced with disconnection) and stuffing everything else into my savings account at ING.

Would make more sense. Until then, I’ll refrain from saving hot sauce packets and spending my money on cheap things just because they’re cheap.

“Everyone knows, the more you make, the more you spend,” says good friend I’m complaining to.

Yes, everyone has heard that. But it can’t possibly be a valid excuse for staying broke. It actually doesn’t even make great sense when you think about it. This I think is why broke people stay broke. We think we need more, we think we deserve more, we spend money on things we didn’t need before we had the money.

I heard once that broke people stay broke mainly out of habit. A bunch of bad habits to be more specific. Which explains why a person could win a truckload of cash on a scratch off ticket and be right back where they started in less than a month. You’ve heard the stories. We’ve all gasped and thought, “what a moron. I’d never…”

When broke people get money they spend it. We get a tax refund, we spend it. We are given a few extra dollars, we spend it. We work more and make more and…we spend it. Fiscally intelligent people and people with money, know that if you don’t have any money and you get a couple thousand extra, you don’t treat yourself to a fantastic dinner party, shopping spree for your entire family, a new car you didn’t need before, or a vacation that will leave you with nothing to show for it. It is nice, as I’ve stated in previous posts, to treat ourselves. There is a difference between wasting every penny of extra money that we get and rewarding ourselves occasionally with a latte.

This is obviously a problem I have or I wouldn’t have been complaining in the first place. I struggle with having extra money and not touching it. I’ve cut out a lot of expenses, I have paid down a bunch of bills and I have budgeted fairly well for over a year. I am still not doing well, and if I get a big head thinking I have somehow accomplished something I could end up right back where I started.

No matter how much money you make, if you don’t manage it wisely, you won’t get anywhere. I should know this from my past and I should have learned by now.

My new Anti-Broke Person’s Mantra: I will not be a broke person my entire life. I will be one of the financially intelligent.

It may not be now or anytime soon, but my reward will be a debt free life. I just have to keep my head on a little while longer.

And although I watched the movie with her, my mind was still going and working and wondering. Trying to keep track of the things I still need to get finished up tonight. Did I forget something? I always forget something. Unfortunately, I don’t remember much about Ponyo. Luckily, the Movie Gallery is going out of business so DVDs are less than $5. Since we don’t have satellite television anymore I’ve been buying really cheap movies to watch. So, we can watch it again sometime and maybe I’ll pay attention.

Frugalness and making money and budgeting can get out of hand, I think. We can become so focused on the making of money that we forget why we are making the money. In my case, I want to get out of debt, I want to take care of my daughter, I want to give her a good life until she is able to give herself a fantastic life on her own.

Giving her a good life though doesn’t mean buying her games I don’t have time to play and providing nice clothes so the other kids and parents don’t pity her for having an unmarried mother. (That’s actually for my benefit anyway. I doubt anyone else really cares what my 6 year old is wearing.)

A good life for my daughter also has to include time and sharing. Doing things together, having fun, enjoying today because today is short. She’s 6 and it seems like only yesterday she was learning to walk. Based upon this definition, have I given her a good life so far? Maybe not.

I’m considering taking her to the movies this weekend. Not because I have a coupon or there’s a great deal. Movie theaters don’t really fit into my budget. My bills are not paid and I am not out of debt (yet). I’m taking her because we deserve it. She puts up with me and watches me work until she goes to bed daily. She understands when I tell her we don’t have money for that, although she did suggest once to just go that machine at the gas station to get some. There is room in everyone’s budget to forget about the budget and to consider what we’re doing and if in the long run it will be worth it.

To me, it is worth all of the work. But sometimes we need to breathe a little. Which means movies or dinner or vacations we can’t really afford, and if things really work out…maybe even a trip to Hollywood. Or Texas, she has suggested that too.

Have a great weekend, everyone! (And spend a little. You won’t die.)

This is of course, supposed to be our month to ponder the importance of financial literacy. Even though I do try to accomplish this daily, I still think it’s important to point it out, especially if this special month helps someone else jumpstart their own financial wellness.

There is a website for Financial Literacy Month which includes an opportunity to take a pledge and commit to at least beginning the journey to achieve financial literacy.

Taking the Pledge

According to the website, www.financialliteracymonth.com, 5756 people have taken the pledge to making a commitment to their financial futures. This means (among other things) accepting responsibility for changing your financial situation, believing you can change and identifying the benefits of changing. Check. Check and Check.

Clearing out Clutter

I’ve been working on this forever, and Mint.com is helping. The Financial Literacy Month website includes a handy guide for determining which tote full of paper you should toss out and which ones you should keep.

Appoint a CFO of the Household

I nominate me and no one nominates the 6 year old. So I guess that means I’m the CFO. (gavel knock…next!)

Get Copies of Credit Reports

I think Financial Literacy Month is stalking me. I just did this like 3 days ago.

Okay, wow. That’s a lot of Partying.

Just noticed there are 30 steps to taking the pledge. Maybe you’re supposed to do one step a day? I didn’t see that suggestion anywhere. I will save you all the play by play on the next 26 steps, but do know that there will be 5757 people that have taken the pledge to change their financial situation when I get finished with the rest. Check out the website and join me. There are also tips and gadgets, tools and resources for achieving financial wellness as well as handy motivational certificates.

Happy Financial Literacy Month anyway!

Oh, and by the way…Miss Bankrupt was included in the Len Penzo’s Best of the Best in Money and Personal Finance #13 Anniversary Edition! Check out the other 12 posts that were chosen. This on top of Financial Literacy Month? Break out the bubbly…cheap bubbly, that is.