Need strength to stop using credit cards

[DarleneW]

My DH and I had all of our credit cards paid off and were good for a while and somehow they got built up again . How does that happen ?
We are going to pay them off and then need the strength to stop using them as much as possible. My DH already took his out of his wallet and now it is my turn . Has anybody else done this and been successful? I want to buy a new car and can't afford to make the credit card payments and a car payment so I have to be real strong here. I figured I could get some good encouragement from all my disboard pals.

 

[QVCshopper]

In your case, I think it's best to put your cards away. There are many folks on here who do not charge anything and can give advice.

However, I do not think its the card's fault for people overspending in general. I charge everything and do not overspend; to me, my cards are cash and I use them as such, while getting great rewards (my card gives 2% into a college savings plan).

If people would see their cards as the real money it is, then those in debt would be far less. It's about living within--preferably below--your means. It's really a mental switch.

Good luck, op; you may want to check out Dave Ramsey.

 

[ICF]

However, I do not think its the card's fault for people overspending in general. I charge everything and do not overspend; to me, my cards are cash and I use them as such, while getting great rewards (my card gives 2% into a college savings plan).

This is correct.....spending problems are not really the fault of the CC. CC's are a way great way to earn free stuff. We charge EVERYTHING that we can and earn all sorts of free hotel stays, disney dollars and the like.

If you are spending more than you can afford to pay month after month, then you have a self control problem when it comes to spending.

In your case, you're probably better off cutting them up and just paying with cash until you learn to get your spending habits under control.

 

[Janepod]

Do you have a budget? If not, make one and stick to it.
It can be something as simple as a column or two in Excel - put the amount of money you have for the month at the top and keep deducting the expenses. If you know you have to spend $100 next week for bills, subtract the $100 already. As you see the balance dwindle, you know you have to cut back.

 

[kwhite1022]

Id get rid of all cards, expect one that you lower to a $1000 and put in a safty deposit box for traveling (which I do, incase we have some kind of serious car trouble or money stolen....etc) then it wont be easy access.

 

[DarleneW]

Thanks guys . Again I'm not sure how the card balances went up so high its just the little things that added up or unexpected things that got charged. We did it before so I know we can do it again. We are a few years from retirement so I definitely don't want to go into retirement with high credit card bills. So we will pay them off and then only have the regular house bills along with the car payment. I can get that for 0.9% interest which is certainly better than the interest on the credit card bills.

 

[daughtersrus]

Another thing my be to put up a picture of your dream car. Maybe on the fridge or bathroom mirror. That way you will have a constant reminder of what you're saving for.

 

[Doodlebug939]

I dont have any advice as I have traveled this same road. Still trucking along the road currently. I have had to look at what are my triggers for spending on credit cards. I am not one who pulls out the credit card monthly or even weekly but I have moments where I can "justify" the use of my card. I needed tires on the car and the truck so I charged them. In hind sight I should have saved for this months ago but didnt so now I have to pay them off.

At Christmas I used the cards but only charged $500. I know that it is a low amount but I should not have done it at all. So I have looked at what my triggers are and tried to minimize the use of the cards. For example, while the $500 for Christmas isnt bad I have started a Christmas fund so this fall I have cash in hand and a NO CHARGe goal.

And I always use a credit card when we travel. I know that we are going away this summer for two weeks but because I know I will charge for hotels and usually food. I have been setting aside $300 per month and buying $50-$100 in gift cards for places we always eat so when I return I will have minimum charges. It is tweeking your budget to fit your needs and then wants. You can do it girl!!!!

 

[DarleneW]

I dont have any advice as I have traveled this same road. Still trucking along the road currently. I have had to look at what are my triggers for spending on credit cards. I am not one who pulls out the credit card monthly or even weekly but I have moments where I can "justify" the use of my card. I needed tires on the car and the truck so I charged them. In hind sight I should have saved for this months ago but didnt so now I have to pay them off.

At Christmas I used the cards but only charged $500. I know that it is a low amount but I should not have done it at all. So I have looked at what my triggers are and tried to minimize the use of the cards. For example, while the $500 for Christmas isnt bad I have started a Christmas fund so this fall I have cash in hand and a NO CHARGe goal.

And I always use a credit card when we travel. I know that we are going away this summer for two weeks but because I know I will charge for hotels and usually food. I have been setting aside $300 per month and buying $50-$100 in gift cards for places we always eat so when I return I will have minimum charges. It is tweeking your budget to fit your needs and then wants. You can do it girl!!!!

Thanks this is probably what happened to us. We charge with the intention of paying it off and then it doesn't happen. Probably the biggest problem is being able to buy something cheaper online but of course the only way to pay for it is with a credit card and then it just adds up. We are determined to do better from now on. I also have a holiday club for Christmas but again a lot of stuff was ordered from Amazon and then the money was never put aside to pay it off. Although that credit card isn't really the problem. Talking about it here helps me be strong and know this is what I want to do and MUST do!!

 

[dzorn]

Thanks this is probably what happened to us. We charge with the intention of paying it off and then it doesn't happen. Probably the biggest problem is being able to buy something cheaper online but of course the only way to pay for it is with a credit card and then it just adds up. We are determined to do better from now on. I also have a holiday club for Christmas but again a lot of stuff was ordered from Amazon and then the money was never put aside to pay it off. Although that credit card isn't really the problem. Talking about it here helps me be strong and know this is what I want to do and MUST do!!

When you do order something on line pay it off as soon as it shows on your cc on line. Don't wait till the end of the month. I'll charge my groceries and come home and pay it off just for the rewards.

Denise in MI

 

[furb & dez]

When you do order something on line pay it off as soon as it shows on your cc on line. Don't wait till the end of the month.

Excellent advice.

And if you're not monitoring your CC statement online, that's probably why everything is "just appearing out of nowhere"! You're not tracking your own spending!

 

[Marionnette]

My DH and I had all of our credit cards paid off and were good for a while and somehow they got built up again . How does that happen ?
We are going to pay them off and then need the strength to stop using them as much as possible. My DH already took his out of his wallet and now it is my turn . Has anybody else done this and been successful? I want to buy a new car and can't afford to make the credit card payments and a car payment so I have to be real strong here. I figured I could get some good encouragement from all my disboard pals.

Some people go "cold turkey" with their credit cards in order to eliminate debt. You can call all of them and ask for the accounts to be frozen while you pay them down. That way, you CAN'T add to them.

In fact, you might want to freeze them with the intention of closing them once the balance is paid off. It will keep you from repeating this cycle over and over again.

If going credit card free is too scary for you, you can also ask the banks to lower your credit limits so that you cannot charge more than you can handle.

You know that you have it in you to get this done because you've done it before. Good luck doing it again.

 

[Disney Addicted]

I did this last year. Our CC was up to $6,300. From Jan-May, I took every dollar I earned from providing daycare and put it toward paying off our Visa. I added another worksheet to my spreadsheet, and watching the balance get lower and lower each week was amazing and motivating!
I was so excited and happy when it reached a $0 balance!

Then... my husband insisted on using the Visa to pay for new windows on the main level. I really did not want to argue over this but Now we have a $3,500 balance and I refuse to put another penny of my daycare money toward it. Luckily overtime for him has kicked in for a little while and I will be taking that money and putting it back to paying off the Visa.

Then I think I will "misplace" his CC. Ok, not really but damn I want to! I'm just going to insist anything else we save up first.

Mind you, I still use my CC but I keep detailed records on my spreadsheet and ensure the money is paid back promptly right away or the next pay cheque period.

I'm going to apply for an AirMiles or other reward card and cancel the Visa. I'm tired of seeing all the unexpected purchases go on Visa and not get a reward for them.

 

[englishteacha]

We only use CCs when we travel (to rent a car, mainly) or purchase something online. I used to use a debit card online but several family members had their checking accounts drained due to a hacker so now I use a CC, just in case. So I use a CC for those purposes ONLY. When I buy something with my CC, I go online and pay it as soon as it appears on the website.

We went years without a CC at all, so it's totally doable, even when you travel! I find, for me, the key is to have the cash to buy stuff. No cash? I don't buy it. We've had weeks where we had to make $50 last through payday, and we never even considered using the CC. We just stayed home and off shopping websites so we weren't even tempted to spend what we didn't need to.

I guess my advice to you is to put the CC away. If you have more than one, cancel all but one. Hide the CC! You don't actually NEED it. Pay for things with cash, check or a debit card. Only shop when you have to, not when you are bored. Make a list and stick to it.

We were debt free, except our house, when we were 25 (paid off all student loan and CC debt!!). We were so frustrated when my car died and we had to get a car loan last year. I had to have a reliable car, and we didn't have enough cash-in-hand for a reliable car, just another clunker. So we took out a small car loan, which we're trying to pay off as soon as we can!

 

[indimom]

We had this problem back in the day.

For us it was mainly poor planning/budgeting.

We would pay our bills and frequently spend the "extra" cash.

Then we would get hit with a car repair or the property taxes (expenses we realistically knew were coming, but didn't really think about until they arrived) when we didn't have any petty cash on hand. So, we would pay with the credit card. And of course, we would spend thoughtlessly at places like Target and the grocery store.

Our first step was to cut up the credit cards.

Our second was to start a budget. We decided how much money we would allow each month for groceries and eating out and splurge purchases. We planned ahead and saved for those larger non-monthly expenses rather than letting them sneak up on us. We saved for Christmas. That sort of thing.

After about four or five years of living without credit cards, we decided to try using them again. We've done fine. So, I really blaim it on our lack of a budget. That's what we really needed to get control of.

We now use our credit card for everything we can to earn rewards. We've had no issue with paying it off each month. Even when we got nailed with some unexpected medical bills/car repairs/etc. we've been able to keep everything under control with some budget adjustments.

I hope this helps! Good Luck!

 

[SandrA9810]

Open a Paypal account, connect it to your bank account, if you want to do online shopping. If you're looking for security. Your normal checking account card should have a visa/mastercard logo on it for CC shopping.

Credit cards are like invisible money to me. I can swipe it, even watch the bank account daily, it's just not physically real. Give me a $20, and I'll wind up saving half of it in my jar.

This past Christmas, my aunt finally filed her tax return and got her first time home buyers credit. Most of that was to repay my grandmother, the rest of it to use for furniture for the living room/kitchen. To say the least, I went a little over board. I knew her price range for the dining room table, and stayed in it. But it was all the little extras, like the place mats, chair pads, and Christmas dinner. Then there were presents. They were all things that she needed, but didn't need immediately and could've held off on till later.

 

[Gumbo4x4]

The problem with CC's is that it's just way too easy to spend more than you would if you had to use cash. For me, the only thing I use mine on is gas since I pay at the pump. We used to put groceries & such on the cards to take advantage of kick-backs from the card, but it's just not worth it when you find yourself with a bill that you struggle to pay.

I suggest sitting down with pen & paper (or a spreadsheet), add up your monthly income, and deduct your known monthly expenses (be sure to include things like real estate taxes, insurance, or other things that may not be billed every month). This should include gas & routine maintenance on the cars, mortgage, car payment, and any & all utility bills, but not groceries or entertainment expenses. Use worst case scenario on your utilties, not the low end or average. If you have a big balance on your CC and need to pay it down, include a monthly payment as well.

After you've deducted all the expenses from your income, see what you have left to spend in a month. Now, deduct the amount you wish to set aside for "rainy day", general savings, unexpected whoops, whatever.

What you're left with at the end, divide by 4.3. And every week, withdraw that amount from the bank.

Whatever you have in cash, that is yours to spend. If you are good & use lots of coupons this week or make good deals, or just decide you don't "need" as much as you thought, you may have extra for a new pair of shoes next week or a restaurant meal, or a night at the movies, whatever. If not, when the money runs out, you're done until next week. PERIOD.

For my family, it's not the fancy restaurants or clothes that trips us up with CC's. It's the "oh, this is on sale, and I have a coupon, so even if I don't need it, now's the time to buy" mentality that winds up running up the charges. But, because coupons & sales are pretty cyclical, there's really no reason to ever stock up. Ditto for all the other grocery/mundane stuff. Oh, pork tenderloin, let's have that for dinner one night (even if it's not on the list). When you buy with cash, you know you have to cut something ELSE out in order to avoid a very embarassing situation at the cash register.

With a CC, picking up something not on your list doesn't cause you to put something else back. Pretty soon, your $100 grocery bill is $175 and you don't even realize how much you overspent. I find it way, way too easy to run up several hundred bucks on the CC $5, $10, or $20 at a pop.

With a cash plan like this, you WANT to spend less & less, because you know "if I can pocket $20 this week, next week, and the one after that, I have $60 all to myself to spend any way I want". And you can see the results right in your wallet.

Anyway, this seems to work for us. We've slipped into bad habits many times. It was always easy in the old days when the wife & I both had good jobs, the cars were paid off, and the kids weren't born. But, we have to be much more careful now, because it's so much more difficult at our current income level to catch up when we fall behind

 

[emcclay]

I hid mine in an old iPod box. The cut-out for the iPod is the perfect size for all my cards I refuse to use now. Charging is so addicting because it's available money! Just get them paid off and keep them for emergencies.

 

[North of Mouse]

My DH and I had all of our credit cards paid off and were good for a while and somehow they got built up again . How does that happen ?
We are going to pay them off and then need the strength to stop using them as much as possible. My DH already took his out of his wallet and now it is my turn . Has anybody else done this and been successful? I want to buy a new car and can't afford to make the credit card payments and a car payment so I have to be real strong here. I figured I could get some good encouragement from all my disboard pals.

It happens because you are using them to buy what you can't afford. Quick, get out the scissors and CUT THEM NOW. Some people cannot handle the temptation, seem to forget it's paying just like cash when you use them - my daughter has the same problem - does not own cards anymore. On the other hand her dad & I have no issues with them. We use our "Disney" cards for points for our "fixes" at WDW for everything we spend each month, then promptly pay them off. You should not keep ANY cards and pay those off and use cash only, otherwise you will have this vicious cycle again, and retirement time will be there, and you won't ever be able to retire wishing you the best of luck

 

[disneyofcourse]

I go "cold turkey" sometimes and just put my card on the shelf at home for a few weeks(2-4 weeks usually). When I do this I'll pre-plan to spend only x amount and have that amount in cash. When its gone, well, its gone! I actually started leaving my card at the start of this month since last month I put 2k+ on it (some DVC dues on that bill). After I paid that bill I told myself to calm the Heck down with the spending for this month.