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Paying Off Debt
by Majenica Moles
If you are like me, you are struggling with debt. Specifically credit card debt. We are in need of a new car, but we pay too much in credit card payments each month, so we can’t afford a car payment right now. We are now tasked with getting some of the credit cards paid off, so we can afford a new car.
The first thing I did, was to start up a spreadsheet. I needed to know exactly how much we are paying each month, and what the balances are for each one. I found out that we are paying nearly $500 per month in credit card payments. Ridiculous! There is nobody to blame but ourselves, though. The next logical step is to figure out how to pay these bad boys off!
I figured if I start with the lowest balance, and pay it off, that will be easier and I will see results quicker. Once you have a card paid off, you need to go on to the next. Keep this momentum up until you have them all paid off. The final step to this, is to shred those cards! All too often, it’s easy to just swipe a card for whatever you’re paying for. It’s convenient, and honestly, it makes you feel like you aren’t spending as much. While you are paying the cards off, you need to make sure to put them all away in a drawer, and do not use them! If you continue to use them, while trying to pay them off, it defeats the purpose.
Paying off credit card debt has a purpose. It helps you afford to purchase other things that are needed, like cars or appliances. More than that, though, it keeps you from paying high interest rates and gives you a sense of satisfaction when each card is paid off. Not having credit card debt will be a great feeling, I just know it! Think about how much you will be saving by not having to pay interest on your purchases. If you were to only pay the minimum payment on your credit card, without using it anymore, you would still be paying for a few years to pay it off. That is just crazy to me!
Chase Rubin has some great information about finances on his website. When you are trying to get your finances in order, and get things paid off, information is vital. The more you know, the better off you will be. I wish I would have thought long and hard before getting into debt with credit cards, but I didn’t. I didn’t do research, or read any information. I just went into it head first. We’ve never missed a payment, so we didn’t have to deal with increasing interest rates, or late fees. This has been great for our credit, but it would be better for our credit if they were paid off completely.
If you don’t have credit cards, I would recommend that you don’t get them. If you are set on getting a card, get a prepaid card. That way, you can’t spend any more than what you have paid into it. It will still help your credit, but you won’t be buried in credit card debt!
"Time spent with cats is never wasted." ~ Sigmund Freud