Get Out of Debt! Book Two: Finding Money to Reduce Expenses by David Rye & Marcia Rye

Author:David Rye & Marcia Rye
Language: eng
Format: epub
Tags: Personal Finance, Business and Economics
Publisher: An imprint of Adams Media, Inc.
Published: 2009-07-15T00:00:00+00:00

#47. I’m charging everything to my credit cards. How do I just kick the habit for good?

Kicking the credit card habit is a lot like kicking smoking. Hiding them in a safe place won’t cut it. Take all of the credit cards out of your wallet, stack them neatly in a pile, and cut up all of them except for one to be used for emergencies only. If you are not able to accomplish this first step, you will never cure your credit card habit.

Replace your credit cards with a debit card. If you don’t have a debit card, visit the bank where you have a checking account and they will give you one. Start paying with either a debit card or check. Tell your family and close associates what you are doing and solicit their advice and encouragement.

#48. What will happen to me once I solve my credit card habit?

Three wonderful things that will happen. First, you’ll start buying less of what you really don’t need. When you use a credit card for a purchase, it doesn’t feel the same as when you have to pull hard-earned money out of your wallet. According to recent studies, credit cards account for over 50 percent of the impulse-buying patterns of shoppers. Second, your total debt will start to shrink exponentially. As high-interest card balances get paid off, you’ll end up with money you didn’t know you had for investing or to pay off other loans. Finally, once you’re out of debt, you’ll feel great. Yes, you may keep one or two cards for emergency expenses to cover yourself.

But when you learn to consistently pay the balance off at the end of each month, you will know you’ve kicked the credit card habit for good. Remember for every month you miss making a minimum balance payment, thirty or more points can get deducted from your credit score (refer to Question 43 for more information).

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