After being swallowed whole by credit card (interest rate of 24%?? Are fricking KIDDING ME?), I decided to take my financial matters into my own hands and get all proactive and stuff.

I made an appointment at my bank on Monday morning. I had 3 major problems:

1. My credit card bill was/is ridiculous. I have a balance of about $4000, at an interest rate of 24%. I was making payments, but I was really only paying the interest, hence getting nowhere. I never used to carry any balance on my card, but after a year of living above my means, followed by months of unemployment, the bill snowballed.
2. I was/is in a vicious cycle known as Overdraft Protection. I would constantly be a few hundred dollars into my overdraft. When I would get paid, most of it would go to the overdraft, leaving me little. I got in my head that the overdraft was just extra money, so I always had -$200 showing up on my account.
3. Banking fees. On my last statement, I must have paid $50 in banking fees. Bastards. Even though it was my fault.

I thought about how to get out of these situations - besides faking my own death and running away with Mr. Wonderful to the Yucatan. I really don't know much about financial stuff, but a good option seemed to be getting a personal loan (at a substantially lower interest rate), with pre-approved payments. I went to the bank with this plan.

Unlike most of my other plans, this one actually worked! I discussed everything with Lisa, who was very nice and normal. One feels very vulnerable going to a bank. I'm used to lying about my finances all the time, to nearly everyone, so it's hard to break the habit at the bank. It's all right there on her screen. I felt naked. And not in a good way, my friends.

Nevertheless, we worked out the conditions of the loan. I'll be getting $4500, which will cover the credit card, and the overdraft. I'm getting rid of one of my accounts that was charging me $1.25 per transaction. It is a floating rate of about %14, which will be deduced bi-weekly (about $70). I'll have it all payed off in 3 years.

Can I hear a boo-yah?

After everything was signed and initialed, she told me that my credit rating is actually really good, and that I got pretty much the best interest rate they can give out. She said that the credit card was just starting to negatively impact things, and that I came at the right time. I guess I should give partial credit (no pun intended) to my mother, who put visions of destitution and aluminum-can collection into my head after hearing part of my financial situation (she will NEVER get the full story, for fear her head my implode).

Also, I do realize that instead of paying off my debt, I've potentially doubled it. I can very well continue to use my credit card as I have, as well as continue to pay off the personal loan. It may happen, but I think just going through what I have, I will appreciate, be wary of it.

This cautionary tale brought to you by.....