How I Am Using My Bank of America Credit Card to Pay Off My Credit Card Debt (June Edition)

trishasaccount By trishasaccount, 10th Jun 2014 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Debt

For the last month, I have been using my personal Bank of America Rewards Credit Card to pay off my existing credit card debt. Then--God willing--I will use the card to add a small amount of income to my monthly budget. Here's how it's going so far:

Part I: The Current State of My Credit

It's working everybody! Currently, I owe $3,478.80 on my credit card, which is a pay-off amount of $38.11 this month, and a whopping (ha!) $21.20 below my $3,500 credit limit. If that doesn't feel like progress to me, I don't know what will. I'm not going to lie, it was hard. Once I paid the card down below the limit, it was tempting to just pay for a few items here-and-there without immediately transferring the money from my checking, but I managed to pull through. Additionally, I have accumulated $20.20 in cash rewards on the credit card, and I can't wait until I reach $25.

Part II: My Goals During June's Billing Cycle

Since obviously, I would like to continue with this success, I am going to lay down a few simple goals for this upcoming billing cycle (June 9-July 7):

Continue with the payment trend, aiming to get the balance approximately $40 from the credit limit (this will allow me to use the card to buy gas for my car--the biggest rewards value).

Reach a credit card rewards value of $25 and roll this over into the balance on the card.

Overall, I would like to see my balance on the card fall below $3,450 by the month's end.

Part III: Questions and Comments

When I first published my original article proposing this plan to pay off my credit card debt, I got some really great feedback from other Wikinut readers/authors. I wanted to address some of those questions and comments here.

1. My plan could easily get derailed by an unexpected expense. This is 100% correct and a real concern of mine. So, here's what I did: I emptied couch cushions, change jars, car cup holders, and deposited my coins into my emergency fund. Additionally, I rooted around my townhouse and pulled out everything I didn't need anymore and could sell, beginning with books. All in all, I currently have a little over $117 in my emergency fund, and I'm not done yet.

2. Did I try seeing a credit counselor and did I ask for a credit line increase? No, and yes. I did not bother with the credit counselor because I (incorrectly or not) assumed that it would cost me money to do so. I did ask for an increase in my line of credit, but was denied.

3. Does the benefit to using the card outweigh the APR that I would pay just to have it? In my case, yes. I don't think I stated this very clearly in the first article, but as long as I buy something for $2.50, and pay $3 on the account, each little amount is deducted from the "due" amount on the card (which is typically $30 total). Therefore, at the end of each month, I have paid what is due, and there is zero interest charged at all.

4. Do I share expenses with another adult? Nope. Not much else to say about that.

5. Should I sell one of the vehicles to pay off some of the debt? Maybe so, but I haven't quite reached the point of desperation required to do that.

For Further Reading...

If you want to know how this all got started, please read:

How I Am Using My Bank of America Credit Card to Pay Off My Credit Card Debt

Please leave any other questions/comments you may have and I will address them in the next edition.

Thank you,


Credit Card, Credit Card Rewards, Debt, Low Income, Paying Debts

Meet the author

author avatar trishasaccount
I'm a 32-year-old mother, teacher, nonprofit worker, partner, and all-around exhausted woman. But there's no sense in complaining when life is so much stinkin' fun.

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author avatar Lady Aiyanna
11th Jun 2014 (#)

Learnt one thing in my life, never have a credit card. Earn your money and use it accordingly. Transferring balances incurs interests from both side with an illusion that it is coming down but it isn't. Learnt my lesson and never again. Live within your means and enjoy life with no stress or worries.

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author avatar trishasaccount
11th Jun 2014 (#)

There is no balance transfer taking place, sorry if I didn't make that clear. I am using the card as a debit and it is paid expense-to-expense as such. Thanks for reading.

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author avatar Phyl Campbell
11th Jun 2014 (#)

Thanks for answering all my concerns! When I saw my credit counselor, the consult was free and what I saved in interest more than covered the fee for the service.
Having and using credit is essential to US living. Without established credit, obtaining a home loan is very difficult, among other things.
Continued good luck and success with your plan!

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author avatar trishasaccount
11th Jun 2014 (#)

If I can find a free consultation, I will definitely check out a credit counselor. It sounds like it is worth the time and attention. I do own my cars outright and have a mortgage (which I am current on), so this card would be the first item to negatively impact my credit if I don't get it under control. Right now, my score is just above 700.

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author avatar Phyl Campbell
11th Jun 2014 (#)

Good for you! I do not mean to tell you what to do, as you are obviously a responsible adult. I just know how much I didn't know or believe and believe in paying forward what I can. I do wish you well, and am glad you are sharing your journey with us!

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author avatar WOGIAM
11th Jun 2014 (#)

I wish you the best and hope you are able to pay off all balances on your credit card. It may not be easy but with determination, you will succeed.

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author avatar cnwriter..carolina
11th Jun 2014 (#)

i too wish you the best...

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author avatar Fern Mc Costigan
22nd Jun 2014 (#)

Interesting post

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