Considering Credit Limits

by JC

Many years ago, I joined the Air Force, and they "gave" me a credit card for the Base BX. It was really my first credit card, and boy did I spend. Then, I started getting other credit cards, and before I knew it, I was in a lot of debt. I had finally turned 21, and started taking money from a credit card to be able to go to the bars. I am in no way, an alcoholic, but at the time it was just for fun. Once my credit card got maxed out, I had no money to do anything.

I wasn't having any fun anymore. I couldn't even go out to a movie, because I didn't have any money. I was "borrowing" from my, now, husband, just to pay my bills. I finally woke up one morning, and decided that I had to get out of this vicious circle. Now, what I learned from all of this, is that it isn't easy to get out of debt. And you certainly can't do it overnight.

In another article written in here, someone said that you have to get mad at yourself. I'm not so sure that you have to do that, but you do need to realize that you have to get out of the "pit." I started making minimum payments on all cards, except one. That one card, I paid twice what the minimum payment was. I also stopped buying things on credit. With that one card, I decided that I was going to pay it off first. Then, when that one was paid off, I went to another one, and used the money that I was paying to pay the first card, and started paying off the next, and so on. Eventually, I making huge payments to one card, as they were all getting paid off, and it felt even better. I still have credit card debt today - three years later. But, my debt isn't as much as it was, and I do have a little more left over each month than I did. I've learned that you can't just use credit to buy the things you want. We have one card that we use, with a very low fixed interest rate, and we are still paying off others. Whenever we have extra money somewhere, we pay a credit card bill with it.

I would never say that credit cards are bad. They are great for emergencies, and convenient. You just have to know what your financial limit is, and not spend more than that. And I don't mean, your credit card limit. If you have money in a savings account, use it to pay off a credit card. The rate of return is much higher when comparing the interest that you receive from a savings account, to the amount of interest you pay on a credit card.

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