Wake-Up Call

Over the past year, we've had a few major wake-up calls. I know that the vast majority has been a result of the economy spiraling downward, but it has had a very real impact on our finances. Here's an overview of what we've been hit with over the past 8 months: 

• 1st credit card slashed limit by $12,900 (no reason given)
• 2nd credit card slashed limit by $10,000 (citing high utilization, likely due to 1st card slashing available credit)
• 2nd credit card issuer closed account (citing high utilization & decreased credit score, likely due to both credit cards eliminating all available credit)
• Several cards increased interest rates & switched from fixed to variable APR
• Tried to refinance mortgage, but couldn't because we owe way more than it's worth (and we would have had to pay a significant penalty due to poor credit score, which plummeted when credit cards #1 & #2 slashed limits)
• 3rd credit card hiked minimum payments from 2% to 5%

I really hate being at the mercy of the credit card companies. We've NEVER missed a payment, or even been late, but they're still able to change the rules on us whenever they want. We have to juggle our budget around to accommodate increased monthly payments (some of them pretty significant!) whenever we get a "Change of Terms" letter in the mail, both from increased interest rates and from increased monthly minimum payments. 

But the worst part is how all their changes have impacted our credit scores, which in turn has impacted us financially. We're paying more in insurance premiums, which are partially based on credit scores. Had we refinanced, we would have had to pay an extra $3000 in up-front closing costs, due to a less than ideal credit score. 

I'm so ready to be free from credit cards. It's still a ways off, but I'm feeling motivated!