I’ve never really been irresponsible with money, but it’s so easy to get in trouble with credit cards. I knew it was time to get my finances in order the minute I got my first call from a collection agency telling me I was in delinquency. So I looked on the web for more info to find ways to fix my problem and I found some methods on how to handle the situation.
I printed up all my credit card statements and just about had a heart attack! I had no idea my interest rates were so high! I now could see that the new dining room furniture set I’d just bought was costing me much more than I thought. It was time to really get this sorted out. I also didn’t know how bad my debt was, and quickly totaled it up to see the amount was in the $15,000 range.
So the articles I read recommended I next destroy my credit cards, so I did. I just took a pair of scissors and cut them up into tiny little pieces. I had fun with it and really shredded them, and they ended up all over the carpet. I pulled out my dyson upright vacuum cleaner and sucked up all the little bits of plastic and felt totally liberated.
Next, I organized my debts in order of which had the highest balance. The ones with the lowest balance were paid first, then I’d pay the minimum on the rest. This is called ‘Snowballing’ your debt. I successfully killed one card in the first month, and another the next, after that was a slow and steady progression of payments on all my cards. By the end of year 3, I had only two cards left to pay and had sliced my debt to almost nothing.
It was still going to take some time to get rid of these last two, so I called the card issuers and told them I needed them to reduce the interest rate. It took a lot of time on hold, but it totally paid off! Now I have two cards at 9% APR instead of 29%! Really, all you have to do is ask and I’m kind of bummed I didn’t try it sooner. Now there’s way less finance fees to pay each month,
Now I’ve learned how to spend wisely. If I can’t pay with cash, I can’t afford it. I still keep my cards a few cards open for emergencies and it also is helping to improve my credit rating, but I won’t ever go back to the reckless spending like before.
Now life is virtually stress free without that cloud hanging over my head. I can rest easy in my full size loft bed every single night knowing my finances are in good shape.
