After thinking about selling my house, I have decided to stick it out at least another year and am in the process of refinancing. The lower interest rate will save me quite a bit each month, and I am "rolling in" a home equity loan ($14,000) and the last remaining credit card I have ($10,000). The new monthly payment will be $600 less per month than what I've been paying.
I have paid off all my credit card debt at least three times in the past, then racked up more of those bad boys. I am older and wiser (maybe not wiser, but definitely older) now and hope never to travel down that path again. I do have a business credit card (one of my various jobs is a business that I own) that I can use if an emergency happens.
Something that I have often done in the past when my debts/expenses have decreased is to lessen up on my workload. I'll stop one or consulting or teaching gigs. This time, I'm actually trying to *increase* my workload. I will still have a mortgage (now for another 30 years) and I still have my enormous student loans (currently in deferment for another year). And as long as I live in this house, I will have repairs, renovations, and expenses. So, my hope (despite the fact that we're in a depression -- oops, "recession") is to find some more odds and ends of work and sock the money away into a combination of savings (for future house projects plus as a cushion if I lose jobs or have unforeseen expenses) and extra mortgage/student loan payments.
I am, however, wondering if I should keep the one credit card I do have, once it's paid off. My credit scores are 738, 766, and 740 (discovered during re-fi process), and while I really really don't ever want to apply for a loan again (will pay cash for my next car), I think credit scores are used in other areas, and I would like to have the best score possible. I think having the one card open with a zero balance would be beneficial to my credit rating, but it *might* also present a temptation for reckless spending.... Any thoughts from you frugalistas out there?
