Cut up all credit cards except one-Updated 10/26 About This Page:

[TMWIlson7196]

This week Jay and I cut up all of our credit cards except one to have incase of emergencies. We decided that if we cut them up we can't use them. We know that will work. Now it's just time to pay them all off and be credit card debt free. We are hoping to be paid off in 5 years. It's going to be hard but I know we can do it. How do you become credit card debt free? Any advice you can give us would be great.

[omd]

You already took the first step. Now you need to focus on paying off the debt. You said you kept one in case of emergency but you really have to make sure it is a true emergency to use it. Pay cash from here on in. If you cannot afford it than you can't buy it. It will be difficult but I'm sure if you put your minds to it the balances will be paid and you will be debt free.

[FanOfMickey]

I am proud of you, I know that can't have been easy. I keep saying I am going to cut mine up, but then lose my nerve But I am thinking I just may have to do what you did.

I too am trying to pay off my CC's. I have not really used them, but not getting far in paying off. I am trying to start doing Dave Ramsey's plan again. I am working on putting $1,000. for my emergency fund. Then I will start to double my CC payment on my lowest. Then when I have that one paid off, put it towards my next lowest debt. and so forth.

[TMWIlson7196]

Originally Posted by FanOfMickey

I am proud of you, I know that can't have been easy. I keep saying I am going to cut mine up, but then lose my nerve But I am thinking I just may have to do what you did.

I too am trying to pay off my CC's. I have not really used them, but not getting far in paying off. I am trying to start doing Dave Ramsey's plan again. I am working on putting $1,000. for my emergency fund. Then I will start to double my CC payment on my lowest. Then when I have that one paid off, put it towards my next lowest debt. and so forth.

Thank you for being proud of me. I need all the encouragement I can get. Double cc payment on the lowest is a great idea. I never thought of that. I may have to try that one. Thanks for the advice. What Dave Ramsey plan?

[FanOfMickey]

Dave Ramsey pretty much recommends putting $1,000. in an emergency fund first for any such emergency that comes up.

Then you work on paying off your CC's by doubling payments on your lowest CC, while paying the minimum on your other CC's. Say you have 3 CC's, 1st with $1,000, 2nd with $2,000 and 3rd with $3,000. You would start paying off the $1,000.
Once the 1st is paid off, you go onto the 2nd CC by adding what you were paying to CC # 1 and adding it to the payment for CC #2.

His Website is Dave Ramsey Homepage - daveramsey.com

I find what he says makes sense.

[njpoppins]

I like Dave Ramsey's philosophy...no get rich quick gimmicks..Just old fashioned values toward money...and I think ALOT of people are sharing his views on money now that the economy has taken such a down turn...My favorite Dave Ramsey quote?..."I have no desire to keep up with the Jones'...The Jones' are broke!"

[FanOfMickey]

I rather like that quote too Norma Jean!!

[Colexis Mom]

Great job and keep up the great work! We only have one card, and don't charge more than we can afford to pay off every month! And it becomes a question of needs (food, gas) and wants (clothing, movies, etc.)! Sounds like you're headed in the right direction!

[dj1028]

While I don't believe in everything Dave Ramsey preaches, I think most of his principles are sound. You've taken a great first step in cutting up the credit cards and not using plastic. It sounds like you're committed to getting out of debt...good luck and keep us posted!

[debsta922]

Originally Posted by FanOfMickey

I am proud of you, I know that can't have been easy. I keep saying I am going to cut mine up, but then lose my nerve But I am thinking I just may have to do what you did.

I too am trying to pay off my CC's. I have not really used them, but not getting far in paying off. I am trying to start doing Dave Ramsey's plan again. I am working on putting $1,000. for my emergency fund. Then I will start to double my CC payment on my lowest. Then when I have that one paid off, put it towards my next lowest debt. and so forth.

I'm like you Janine... I can't quite cut them up... I have stopped using them though. We have been using the Snowball plan for 6 months now and have paid off quite a bit of debt... it's getting easier to say no to things we want, but don't need... but now we are trying to figure out how to do Christmas w/o credit cards, it will be the first time.

[Goofymomof2]

Great Job, Teresa! You've taken the first (and hardest) step. Like others here, I don't follow ALL of Dave Ramsey's ideas, but his no-nonsense approach to lowering your debt by snowballing your bills is dead-on. I used this approach many, many years ago when I first got out of college and realized how much credit card debt I'd accumulated. It took 2 years, but I've been successfully debt free for 15 years and DH and I only put on our card what we know we can pay off each month. We've been putting all of our expenses on it for 3 years now and we've never not paid it off. Once you get into a "debt free" mentaility, it's actually really easy to maintain.

Again, congratulations on taking that step!

[TMWIlson7196]

Thanks everyone for the words of encouragement. I need them.

[RoonieRooToo]

That is so awesome Teresa! We've gone through this ourselves 6 years ago when we weren't controlling our spending and I knew we were going to buy our current house. I used the snowball plan and we went cold turkey on all credit cards. Our mistake then was not cancelling the cards after we paid them off.

We built our house and moved and the whole furnishing an empty house strained our discipline and we ended up using the cards again. So, we got back to our "bad state" after three years of letting our discipline slide and slide. 18 months ago when I started our plan for me to quit my job we go a grip again and this time we've cancelled all cards but one and we got rid of that debt in the last 14 months which means our idea of "bad state" is a lot lower than it used to be. But it was interesting, it took just making that "mental switch" to get our discipline back once we decided.

So, I guess my point is, once you get through this and with the debt gone you will have built a new habit and it's one that, if you slide like we did, is not that hard to put back into place. I am very proud of you for taking this step to build strong financial habits. Congratulations!

[TMWIlson7196]

I have one question. Is it better to cancel a paid off credit card or leave it open? My mom watchs Suze Orman (I can't stand her nor do I agree with her) and Suze says you shouldn't cancel credit cards. What is your take on it? Do I or don't I??

[FanOfMickey]

I have heard you should leave them open and not close them. Some reason it hurts your credit score when you close them. Maybe someone will come along who knows for sure.