Wednesday, July 11, 2007


In preparation for getting our $1000 Baby Emergency Fund finished (hopefully within a month!), I went online to figure out our Baby Step 2 (this is Dave Ramsey's plan for those of you unfamiliar with the baby steps). This is to pay off all debt except the house.

So we have the smaller cc, HSBC, at about $3500, and the larger one, DM, at about $10,000. Then, I went back to check interest rates. DM - 27% for an old $2000 cash advance (which will be paid off LAST, of course) and 21% for the rest. HSBC - I thought was at 24%, but they jacked my rate up to 30% (!!!!) last September. OMG - THIRTY PERCENT!

Now, I know banks need to make money, I know no one forced us to use them - but 30% is usury. That should NOT be legal.

It really ticked me off - at myself for not even noticing, but also as a drive, a fire, to get them paid off. I want them gone!!!



Jennifer said...

You're going to feel sooo happy when those debts are gone. I agree that those kinds of interest rates just aren't right!

jayedee said...

it IS usury!
but what a motivator!

paidtwice said...

that is crazy! I assume you can't get them to lower the rates or transfer to a different rate? Ugh that stinks. sorry. :(