This topic contains 6 replies, has 7 voices, and was last updated by Forest Parks 1 year, 9 months ago.
January 1, 2013 at 4:06 pm #642
I got in serious credit card debt years ago and must say that I am no of the position that they will not be a part of my life.
How many people think you can sensibly manage a credit card after you have eliminated that debt?January 2, 2013 at 10:50 am #681
I’m in serious credit card debt right now and part of me wants to be rid of them forever, BUT another part of me wants to at least have one card on hand for emergencies.
Clearly, I am not able to sensibly manage a credit card now, so what makes me think I could do so once the debt is paid off?! I’m scared. Seriously. I mean, if I’m going to keep a card only to pay it off as soon as I use it, then why have it in the first place when I could just use my bank’s debit card, right??January 2, 2013 at 10:18 pm #728
Maintaining a credit card might be difficult but it helps to improve your credit score if you use it wisely and pay it off. I may be drowning in debt, but I have great credit…so as long as my credit card company doesn’t start charging an annual fee, I’ll keep it around and use it once in a while.January 3, 2013 at 11:10 am #731
I’m DEFINITELY anti-credit-card in the future. For me. It’s not the right decision for everyone, but it is for us. And it’s more idealistic than anything – we just choose not to participate in that industry. (Which means we don’t care about our credit scores, either; after the debt is paid off, we will have enough in cash to handle any purchases we need, including a residence!)
That said, the interesting thing is that I closed almost all our accounts (with balances still on them) and my credit score is higher than ever! :)January 4, 2013 at 8:22 am #754
I should be anti-cc, because I also have trouble controlling myself. I’d like to think if I have the perseverance to pay off my debt, though, I will be in a position where I can actually use the rewards that enticed me to sign up in the first place. I currently have 4 cards — my oldest card, I’ll keep for the credit history; I have an airline rewards card that has gotten me several flights “free” although the interest I’ve paid is more than the flights would have been; my third card is through the credit union and I have only ever used it for balance transfers, never purchases; my final card was just opened in October for a balance transfer.
My plan post-payoff is to keep the rewards card and the original card, and close the other two; although I just bought a house and don’t foresee needing any new credit for the next 7-10 years, so maybe I should chuck the original card as well.January 5, 2013 at 6:17 pm #770
I went from abusing to using credit cards in a positive way. I paid off my credit cards a couple of years ago. I was fortunate enough to win a contest to go on a debt-diet with Jean Chatzky and a sponsoring website. I had to report every dime spent and my progress at paying off debt to her and discuss it in a weekly phone call; and I had to blog my weekly challenges and successes. I analyzed every penny I spent. I negotiated new rates on credit cards, cable, home and auto insurance, etc. For the first time in my life, I looked for ways to save and payoff debt. Paying off credit cards became a bigger high than shopping.
That experience changed my whole outlook on finances. Since then, in order to ‘tickle’ my credit score, I use my cards every month and pay them off every month-because I budget for it. I have money in my accounts to pay off the cards before I charge anything to them. I am keeping my credit score high because once I pay off my mortgage and auto next year, I will be doing some home improvement to prepare my house for my retirement sometime in the next decade. I want to replace the roof, the windows, the siding, the plumbing, etc. I am diverting as much to savings as I can while still accelerating payments on my mortgage and auto in order to have no debt other than monthly living expenses. Hopefully, most home upgrades can be paid in cash. If I have to borrow-I want to get the best interest rate possible, so maintaining an excellent credit rating is a priority of mine.
I challenged myself not to fail-not to fall back into old habits. That was enough incentive for me not to fail with the use of credit cards.January 10, 2013 at 9:01 pm #863
The link below: your American Express card and your Visa card having their daily discussion about you.
You ever wonder why everyone on earth is trying to get out of debt…but noone on earth wants to give up their credit cards to do so? Well allow me introduce you to the world of pimpin:
Just like in the pimp game, credit cards keep you broke and with just enough money to think nothing’s wrong. They’ll encourage you with incentives to charge all the latest clothes, shoes and handbags that you’ll never want or use so they can keep you “lookin good, pretty and all that …but no doooough”.
Once “they get a b*tch, they got a b*tch”. I don’t have to tell you that the higher the balance you rack up, the more difficult (nearly impossible) it is to get free from it. And how did this happen to begin? Because even though everything was going “right” and you were so called “using your credit cards responsibly”, by design of the system, one day you slipped up. You sent in a payment or clicked the pay now button online and for whatever reason (even though you know damn well you did it the right way) that payment never got there. Then two large fees are instantly assessed (a late fee and an over the limit fee) to a balance that you were having trouble paying down to begin with. Now you can’t come up with the total minimum payment due so you let that overlimit balance sit through another pay period while it racks up additional interest fees you also can’t handle. Then on top of that, here’s the kicker: all of your other 12 credit cards are raising your interest rates on those balances you can’t afford to pay down simply because they’ve noticed your delinquencies on that original credit card. Fun fun fun huh?
“Anyone can control her body, but what you’ve got to do is control her mind“. The reason these little evil, mini loans have worked so well is because the marketing has worked …so well. Many of you truly believe not only should you never be caught without one but that you actually needa credit card for anything, be it emergencies, building your credit score or even for the so called perks and the freebies. Well lets look at the realities:
First off, if an emergency comes, the last thing you want to do is clean up that emergency using a tool set up for you to have a larger emergency trying to pay for that cleanup in the future. The true emergency fund is…guess what…AN EMERGENCY FUND. Save 6-9months worth of fixed expenses in cash then stash it away and you wont have to pay 30% in APR on every “emergency” that comes along.
Next, as discussed in our Why You Don’t Need Credit page, the only reason someone would be dumb enough to try and build up a credit score is to potentially use that credit score at some point in the future. Folks, don’t be dumb. Anything you really need can be bought with cash and with money you’ve already made. Act your wage.
Lastly – you want to do what?? Buy a Coach bag so you can earn extra reward points and then use those reward points on a trip to Miami…like next week? You’re going to buy a $3,000 bag so you can save $100 on a plane ticket? Thats like spending a dollar to get three cents back.
The moral of the story is that the sooner you wake up and realize you don’t even have to play in the game to begin, the sooner you stop being pimped out to the credit card industry. Cash or visa check card/visa debit card (which works just like a credit card without the debt) is all you need when you’re out in the streets.
The rewards of keeping these mini loans in your day to day lives (“reward” points, tshirts, flyer miles) don’t even come close to outweighing the risks (intense stress, depression, dealing with crooked debt collectors and even possibly bankruptcy). As a matter of fact, if you really want to take control of your life, you’d go find those cards right now, pull out the sharpest pair of scissors you could find and then proceed to cut them &%$^&*as up.
FYI- Once you do cut em up, you can then opt out of receiving credit card offers in the mail FOREVER here: http://www.getrichslowly.org/blog/2006/06/06/how-to-opt-out-of-credit-card-offers-forever/
The best way to get out of debt is to follow the process of STAYING out of debt.