boyz, the credit crunch hit me. i thought i was "home free" because our car is paid for and we just made the last payment on our house trailer this month. but then the credit card statement came, and instead of increasing our credit line like they always do when we approach it, they kept it the same. i now have no more "credit" on my credit card. and our balance is $26,000. we've financed our cat "hobby" with the credit card for years 'cuz we spend far more than i bring home. we're hoping we can cut expenses a lot. and valerie will look for a job as a hotel maid when the travel season starts. i'm wondering, is anybody else having credit problems? (misery loves company)

Les, I went through a credit card crisis about 10 years ago. It was more my doin's than the wife's. It took a couple years and a little help to get out of it. I swore then never to have it happen again.
Now that your house is paid for it's time to start bringing your card debt down as fast as you can.

Les, sounds like you can maybe direct your house payments to the card like Jimi said. I don't know what your interest rate is but be sure to keep paying every month so that it doesn't skyrocket. Keep your credit score as high as possible to allow you future opportunities to shift that debt at a cheaper rate. I don't know all the details but it sounds like it may be better for you to pay down the debt before all other investments and maybe even sell something to do it. You don't need both kidneys anyway. Just kidding, but I've got a fair amount of debt myself, (mostly wife's school) it's very cheap since I work for a bank and get a good rate and maintain a good credit score but the thought of being without my job and having that rate go up is more of a threat each day in the banking industry. Hang in there!

One more.. I've seen some pre-press release announcements regarding credit card rates and to make a long story short, ALL banks are basically implementing a zero-tolerance policy when it comes to missing payments, etc. Rates could go way up if you miss just one payment. The Government wants to implement certain regulations too which in part is what's driving this effort. Unfortunately and ironically, only those with excellent credit scores will have options. There will be much news coverage regarding credit cards this year. 2009 will be the year in which many households deleverage which of course will be bad for retailers but good for the American citizen. I will be one of those this year..

thanks for the advice, boys. and, yes, my house payment is definitely going to the credit card now. already, in fact, we've made a dent in the card. we now have $1,800 in available credit. we've vowed not to use it ever again. in the meantime, we've got uncle henry's inheritance ($20,000) in case of emergency. our car is a 1997 ford with 144,000 miles, so i'm sure we might be facing repairs in the near future. thanks for the tip about not missing a payment. i'll make sure of that. our interest rate now is 12.15%, and i'm sure it'd be more like 19.99% if we miss a payment.

I have never paid interst on a credit card.A personal loan,refinance,equity loan are all better options.Interest much lower.I used Discover when I had my business.Ran up 50-60 thou a month but always paid it on time.It was nice getting checks in the mail for $1000 from Discover for using their card plus we only had to send 1 ck & their statement was broken down into different categories so it was like them doing your bookkeeping for you.Ineresting note back in Bob's day there was no credit.If you didn't have the money you didn't buy it.This generation is so spoiled but that will change when the clown takes office & takes all your $$$ so he can help the ones who are too lazy to work or try to better themselves.

Les and Val.... I feel your pain. One of the beauties of Jimi's leagues is an openess and love we all have for each other. We are all different but respectfull of what is important to each fellow member. Having said that, you have to understand I have come from a different era. For the wrong reasons I have made a lot of "right" decesions the past six years. Early in 2004 I deceided to stop "growing" my money and live off of past labors. So I got out of the stock market as I was sure before the elections of 2004 the Arabs would blow up something somewhere and the market would crash. (WRONG - thank goodness) Moved the money to CD's in several banks. Then in early 2006 it seemed the housing market was going too crazy to last and we sold our Condo at the peak of the market around here (June 2006)and put the proceeds in ten year CD's at 5.5%. Now use that interest to pay the rent and continue not to grow our money but feel we won't outlive it so it is a very relaxing feeling. **all of this is just luck**. I would think if you job at the library is relative safe then a saving accout of three months of income would be fine. I would think if you can mortage your trailer for 15 or better yet 30 years at around five or five and a half % you should do so and completely pay off those credit cards. If not paided in full each month they will eat you alive. Then work a budget you two and the cats can live with and stick to it with out fail no matter your wants. I think you will be suprised how much satisfaction you will feel and your enjoyment of life will be rewarding. Les, this just comes from an old guy who is in love with you, the OGBL, and doesn't know how to say anything IN SHORT FASHION. peace and a happy and better New Year to all.

Les: The only advice I can add to the ones already given to you is to see if you can get an equity loan on your paid up house trailer. Last year I got one on my paid up home to finance my daughter's wedding and I was going to also buy the car I was leasing. So I got a home equity variable rate loan which started at 7.24% and is now presently at the unbelievable rate of 2.49% which feels like almost a free interest loan. The monthly interest has gone from $144 to less than $75 a month on about $ 33,000- the amount I took originally. Also the loan can be changed to a fixed rate anytime I want in the future; which obviously at this time I'm not in any hurry to do since the fixed rate would be between 5% to 5 1/2% which we are a long way off. Good luck to you both in the New Year and lots of good health.

Also an equity line on home is tax deductable, where the credit card interest is not. Even if rates are the same that would save you some bucks.

Good luck!

OK, boyz, thanks for all the great suggestions and support. Valerie and I are taking action, as we speak. Each cat has been assigned a neighbor's farm to patrol for mice. The farmers have agreed to pay them 10 cents per mouse. For my part, I have stopped drinking. Although that might be a little too severe for the situation. I mean, maybe I should drink MORE to alleviate worrying about finances. Anyway, I'm looking forward to the February keeper announcements. That will be kinda like "pitchers and catchers report".

I like your analogy of the OGBL Keeper Anoncements and the Pitchers and Catchers reporting.