get out of credit card debt

getting excited for pay day just so i can pay off more of the credit cards. lol

I have paid off five cards now.

Updated everything again last night.

I wish I had never got a credit card, but I guess at the end of the day it taught me that I really need to think about spending only what i have, and what the definition and value of saving is. How hard work pays off. The interest just builds up too fast, then lated fees because I lots my job. In a few months my credit card had about 200 dollars in late, and then over limit charges because of late fees. But I was flat broke. Anyway, things have turn around and I am in a lucky situation for now. I realize i need to start saving and paying off my debts. A little tricky since I have to pay for my schooling (3G) but should be done by the end of the year.

So credit card wise, only 2,100 dollars to go! Then def canceling one card!

but surely I am achieving this goal. I have entered into a debt management program and outside of that I have very few debts to pay off. Getting into a debt management program was one of the most emotionally cleansing experiences. It just takes so much pressure off. I wish I had done it months before.

I have one card selected that I want to pay off in October – a belt-tightening stretch, but I think I can do it.

http://demibrix.blogspot.com

Ummm….so the WONDERFUL people at Chase upped my credit limit by A LOT! I understand that they did this because my credit is getting better AND they want me to spend spend spend. Welp, that is JUST what I did! I am NOT getting mad at myself though, its a non productive use of energy in my opinion.

I have 2 more credit cards that’ll be paid off next month SO I am going to focus on just one credit card at a time. Chase, which has the HIGHEST balance currently, will be paid off first and then I will go right on down the line. Plastic can be dangerous!

So I have two of my MANY credit cards totally and completely paid off and I couldn’t be more estatic about it. I only have a little more to go on most of them and two of them are still pretty huge. Slow and steady has been working out just fine in this situation and I plan to continue on my path to becomming and staying debt free.

I did my exit counseling for my student loan and won’t have to start paying that back until September SO I am socking away some cash in my savings for that and my upcoming car insurance that is due in August. Saving I need to work on some more but paying things on time I have down pat!

FEELS SOOOOOO GOOD!

I plan to start doing this. It bothers me all the time. I plan to pay them off and get rid of one. Getting a second one was a big mistake though at the time I had no money after losing my purse with money for rent since I had lost my check book. It had to get paid somehow, but still. Credit cards are evil in my eyes now. It was to easy for me to get carried away, I never thought it would be this hard for me to get a job after my other one ended. Should also start considering a savings account!

A few months back I said to myself, this can’t go like this. Bills of $10,000 on my 2 credit cards and no money in the bank. I do have a decent job but I had no discipline in regards to money management. I can tell you that being in debt and missing discipline spills over in every part of your life. It’s like sickness that will make you unsuccessful everywhere, from work, to dating to health etc..

The first thing I realized is that I am like a child when it comes to spending. Immature and I set myself a few goals a few months back. So far it shows good results.

So here are things I did so far to reduce my debt to half and falling down… This is not a product of my genius, I just collected information available from various sources. But hope it helps:

1) Pay ONLY CASH for purchases (forget credit card for day-to-day purchases, and don’t do large purchases when there is no money). Cash is the king.

2) Stop that “pay-check-to-paycheck” attitude. You have to LIVE AT LESS than what you can earn. Even if it is just 1 dollar less. But you have to do it, it is psychological.

3) Start investing for retirement (start with simple savings account and put monthly payment there). This is again more psychological than technical.

4) Make your money WORK. Set some expectations for your money and check on monthly basis if those expectations have been met (=your net worth must go up every month, even if it is just 1 dollar).

5) You must have a budget that you set month IN ADVANCE. If you need to pay by credit card, then PREPAY IT. It’s easy to do. With most credit card companies there is not a problem to put more money on your credit card than required. You can even keep a POSITIVE BALANCE every month and use the card till you used up that balance and reach 0. Your credit card company will be happy. Since you are giving them free money in their pocket. Again, you don’t need to do that, but it really helps! Try it.

6) Be disciplined. Don’t let your credit card company chase you down like a 5 year old. Man up (or woman up) and have a good attitude so you can be proud for yourself. Don’t avoid looking at that bank account or credit card statement every day. Face it.

7) Give every dollar a JOB. I mean a function, so every time you purchase something, set the expectations for every dollar. Don’t just get your money to go away like if you flush down the toilet.

8) sign up for some online financial and budgeting tools like Yodlee MoneyCente or Quicken Online. Both are free. Have a joy doing this every day.

9) Don’t be afraid to TELL people in conversation that you are in debt and are working to get out of it. This is psychological. The right friends will understand it and even help you out. People who won’t understand it are not your friends.

10) Don’t forget to donate! This has again psychological effect. But I don’t mean shelling out money to someone who has same problems as you. This won’t help them. You have to give your money a job. So select a good cause for donating. In addition to that – donating is not only money, it can be your time. Donate your time. By helping others to change their lives you help yourself.

(P.S. If it helps you, you can cut that credit card in half.)