I have talked about it previously but had not taken out a personal consolidation loan until now. So I decided on a round figure of $24,000 which pays off my wife’s Discover, my Discover, AMEX and our bank VISA credit card. The interest rate is not the greatest in the world at 13.99%; although I thought that over the phone we agreed on 11.99% because I chose automatic payments, but I am not 100% sure on that!
My payment is just under $500 a month over 72 months, which is a little more than the minimum payment requirements; but less than what I was actually paying on the credit cards. The aim with this consolidation loan was not to reduce the payment amount; but to create some structure with a single payment instead of four separate payments while limiting spending on the four credit cards.
Due to a slight miscalculation of not factoring in interest accrued while the loan was processing; I still have a small balance on my bank VISA; but that is manageable; I can zero that balance in a few months.
The downside of taking out this loan at such a high interest rate is that I will be paying close to $12,000 interest; but that is less than the interest rates of the credit cards that ranged from 16.24% to 20.24%.
From a personal point of view; I feel much better about my finances. Before I felt that our spending was out of control due to mostly medical bills and short term unemployment; bills continue to come in even if you don’t have cash readily on hand. I require structure in my finances and credit cards don’t offer that.
Moving onto my [ almost ] sugar free diet; since the scare with my eyesight, I have been trying really hard to limit my sugar intake. Which means no more Pepsi, which is the toughest pill to swallow, I previously had too much blood in my Pepsi stream. I was not much of a candy eater; but now I can’t have the candy; I suddenly want it more. It is amazing how much you take things for granted until they’re gone.
I have even started taking Splenda in my tea and coffee; which is taking some getting used to. But it’s all for a good cause; that cause being saving my eyesight. Yes, I should say that I have type 2 diabetes, hence the sugar free diet; something I did not take that seriously until it impacted my visual acuity.
I also suffer from depression at times and this sudden change to little to no sugar in my diet has made that depression worse. I find myself to be short tempered, especially with the kids constantly in and out of my office while I am trying to work. Another example, which happened just this morning is my office door doesn’t always latch first time; I found myself getting angry with the door as stupid as it sounds.
I’m hoping that this irritability will go away in time as my body adjusts to a very low sugar diet. You wouldn’t think giving up sugar would be so tough, the Pepsi in particularly had become like a drug for me, drinking upto four liters a day. I guess for a couple of months I will be saying sorry to my family a lot after I snap at them for very minor things. I don’t like feeling this way, but I must stick with the program.