Back on the Wagon

I have found myself spending more lately, and being less frugal than I used to be.

During my divorce, I really bottomed out my credit.  I was unable to pay my bills, and my credit took a nose dive.  However, when the divorce was final, I was lucky enough to get a decent size settlement.  I was able to pay off all of my debt, and have $20,000 left over.  I put that money in a CD, thinking I would be buying a house soon.

I knew that I would need to rebuild my credit.  After discussing my situation with a friend who worked for a credit union, I took out a CD-secured personal loan from my credit union.  I opened a credit card, with terrible terms.  (Yearly membership fee, $7.00 monthly servicing fee, $200.00 credit line.  At least the interest rate is only 9.9%, although I paid no interest in 2008.)  At my friend’s suggestion, I also applied for and received a credit card through my credit union with a $1,000 limit.

Also during this time, I started my current job which is through a temp agency.  I have no benefits, no paid time off, no 401(k), nothing.  I have been told, repeatedly, that my boss wants to hire me.  I really don’t know what the hold up is, but my contract has been extended numerous times.  I’m making good money and I’ve been able to save over $1,600 since September.

Based on the promises of a job offer, when one of my CD’s matured in late November, I didn’t renew it, and instead had the credit union put it into my savings account.  Again, my thinking was I would be buying a house as soon as the permanent job offer was accepted.

Fast forward 6 weeks, no job offer, and the money in my savings account is $2,300 less.

How did this happen?  Easy.  The money was accessible.  Which was the whole reason I put it into a CD to begin with.  I am so good at “pissing” away my money.  Granted, when you add in the savings I managed to put away, I am only down $700, but still.  It was the credit union credit card that did it to me.  Since I am now a firm believer in paying off the card every month, I just had them deduct the amount from my savings account.

Today, I pulled the money out of my savings, and deposited it into the checking account that my ING savings is linked to.  When the bank check clears,  I am putting the money into ING.  I find that I am more inclined not to withdraw money from ING, and the interest rate is 6 times higher than what the credit union is paying.  It’s about the same as the credit union’s CD rates.  Plus it’s liquid, if and when that job offer should come along.

The credit card?  It’s going into the freezer in a block of ice.