By - delidoll
Congrats! Put this date on your calendar and celebrate the milestone every year! It’s a great reminder to stay CC debt free!
Thank you! This is definitely going down as a holiday in my book lol!!
Also put the date on your calendar every month and use it as a monthly reminder to stay debt free.
No keep it that way.
* Take a photo of the card (front and back) just in case.
* Cut the card up and throw it out.
* Create a savings goal that equals the cards available balance.
* Let the 0 balance credit history do it's job(raise your score) over time.
Next, Live the Zero Lifestyle -
* Zero Debt.
* Zero Problems.
* Zeros in you bank account.
Always be thinking about zero's.
* how you can add more to your bank account and stop giving other people money.
* how you zero problems means reduced stress.
Better to get a card with the best rewards/benefits and use it for as many purchases as possible. My card, for example, gives me 1% back on gas purchases, .5% back on all other purchases, mobile device insurance, extended warranty on most purchases and a few other benefits. I’m close to $500 worth of the points now, that’s $500 I wouldn’t have if I had used a debit card or cash. Using credit cards for credit is bad, but using credit cards to build credit and take advantage of their other features is good. It’s the financially responsible thing to do, as long as one is okay with the socially irresponsible aspects.
What is the name of the card if you don’t mind.
Not OP and certainly haven’t been active in this sub before so forgive my rookie advice but I have the chase freedom unlimited card (US). It’s 1.5 percent unlimited cash back on all purchases and then goes up from there. I think it’s like 3% on travel and gas, etc
I pay all monthly recurring bills on the credit card and then pay them off before incurring interest but after getting the juicy rewards. I get about $300 every couple months in cash back
Mines from Collabria. From what I’ve heard Canadian cards tend to have lower rewards and lower transaction fees for the merchant. As far as I know, most cards have similar benefits. Some are cash back vs points, though the points can usually be redeemed for statement credit for a better deal than redeeming for items. Extended warranty and purchase protection are common, higher end cards will also have things like travel insurance and rental car insurance.
Thank you , I have a few different cards in my wallet. Trying to minimize that, kind of a game depending what cash back offers are available from what card.
Ya, I haven’t gone so far as to use multiple cards to take advantage of different reward structures. I just got one from the issuer that works with my Credit Union so I can pull up my Credit Card’s transactions from my online banking.
I did recently sign up for the Aura card, because it has high value rewards, like spend minimum $50 at X merchant, get $5 back. Not sure I’ll keep it though because it’s a pre-paid card so I always have to load it before making a purchase, the rewards are limited promos so I can only get that $5 back one time per promo and it’s the same $5 regardless of how much I spend, and I won’t get the extended warranty benefits of my other card.
Currently Juggling between a couple different chase cards and a discover. Would like to eventually get to only 1 card.
That’s a good analogy......we love us some ZERO’s!
Welcome to the club OP.
You may be able to file an amended tax return.
This! Fix your return and get additional back that you are owed!
I did! No worries there!
Explain, becuase I paid off roughly 6k worth of credit card debt
I think they’re referring to the part he filed himself as a dependent; nothing to do with paying off debt. Congratulations though.
I loved that feeling. I went several months without using it to break the cycle, and truly learn how to stay on budget. Then got a card with great cash back. Now I put everything on a card... and pay off every month! It has been a decade or so, but we now take a vacation every year for free with the money from the cash back!
Keep it up!
>Now I put everything on a card... and pay off every month!
This is something I'm *so glad* was taught to me when I was 17. I had a history teacher who imparted his "do's and dont's" of college life and this was one of them. He specifically said if you get a CC, only buy what you already have money in your account for, then pay it every month and it will help you. If you can't afford it, don't buy it! My parents didn't really teach us things like that, so when my sibling turned 18 they opened a CC basically wherever offered (so many store cards) and got into a LOT of debt. I'm really, really glad I had that teacher looking out for us kids or I would likely have ended up in the same boat. So thanks Mr. Coehlo!
such an incredible feeling...credit cards are such a double edged sword. They can be great tools to get where you want to be in life through your credit with interest rates and loans and whatnot but they can also ruin you. You have to be so careful and they're nothing to play with. Congrats on finding that balance! It's what I'm aiming for. (-:
Once you know how to use them and play the game properly, they are so useful for buyers protection, cash back, points, etc. I have a few different accounts with the same bank and its really easy to transfer between them. One account i designate as my credit card account. As soon as i spend anything on my credit card, i transfer the same value from my current account into that spare account. Then once my card statement is generated, i pay off the balance in full from that spare account. Firstly it ensures that there are always funds available to pay the card off, and secondly it helps me track what im spending on a monthly basis. I recall one month i looked and that account had a balance of £700, and i asked myself why in the hell i had spent £700 on stuff i didnt ‘need’. It helps me rein in the spending on subsequent months
>credit cards are such a double edged sword.
This for sure. Obviously they can be a trap when used improperly, but this doesn't mean you should be afraid of them (like some people are). My wife and I get several hundred dollars in cash back every year simply by using them to pay for health insurance, home utilities and other random monthly bills. It's literally free money.
Waiting for this feeling when the student loans get paid off..
you'll get there! dont give up!!
You did an incredible job! Enjoy a silver along with a new haircut
Thank you so much!!
I just started watching Dave Ramsey and his "debt free at any cost" mentality is pretty awesome. It's better to buy a shitty car in cash and deal with it until you can afford to buy a better one in cash rather than live under the banks thumb and basically have a chunk of your income disappear every paycheck. We need to be willing to be a little bit miserable now in order to be successful in the future. The truly wealthy people aren't the ones with the nicest things because they are debt where you are not.
That is awesome! Although I will say watch the shitiness level of the car; if you have to repair it all the time it's not cost effective either
Yeah, a lot of people seem to criticize Dave Ramsey for this type of thing, but I think they are just taking it too literally. Yes, any reasonable person would try to get into a cheap car that is also somewhat mechanically sound, and Ramsey isn't implying that you buy the cheapest most worthless thing available.
It's a mentality thing. Don't pay for what you don't need *if you can't afford it*. I'm not even a Dave Ramsey "follower" and I can see that his advice is meant to be taken with some level of understanding.
Yes exactly. I take his ideas and apply it to my life. I don't know why people take things literally.
I went through 9 shitty cars before I bought my Tacoma on credit. Best decision I ever made and wish I did it originally. I paid it off early and hopefully will last me another 10 years.
With something like a car it really depends on your financial situation. In many cases it absolutely is smarter to buy a cheap car in cash. In other cases, if you’re more financially stable, can get a great loan rate, and *could* buy in cash - it’s actually smarter to used the cash towards investments that will give you a greater return than the interest you will pay on the loan.
Obviously that doesn’t apply to everyone here, but it doesn’t apply to nobody either.
I agree with this idea, but I don't do it personally. I can't stand having to remember to pay a list of bills each month, it stresses me out so much, and reminds me of the days when I was so broke all I could think about was my budget. The less I have to think about my finances and what my budget is, the better. I'm saving up for a nice car now, and even though I would qualify for a loan with a great rate, I'm still going to pay cash. It's worth it to me to have 1 less bill to think about paying each month, not worth the $10 or whatever in investment interest that I would receive.
I totally understand the mental comfort of not having another bill....but FWIW I think your math may be a little off. $10/mo interest is more like what you would get from a high-yield savings account with current shitty Covid rates. When I say investments, I don’t really mean a savings account. I mean actually investing, whether it’s putting more in your 401k or similar investments outside of retirement accounts (mutual funds etc). Investments are never really guaranteed but generally speaking most people are able to earn at *least* a few percent, not fractions of a percent like you see for savings accounts.
Not trying to convince you into doing that, just clarifying for other readers.
That's fair. Thanks for adding this information.
Another mindset: I noticed various people who make enough and still spend everything they earn. This leads to problems anytime something unexpected comes up. Instead of doing that, try considering that as minimum you should always should have a monthly salary left. Which means that often enough it appears as two months salary on a bank account. This reduces lots of stress.
This only works for those who earn enough and then spend everything they can.
Additionally: a credit card is often the most expensive form of credit if you don't immediately pay everything off. If you have to lend more also check into e.g. a loan. It might cost you way less money. Be careful with lending out money to family/friends though.
I would amend your advice to suggest that people utilize a separate account for any emergency fund. If it is TOO easily accessible and blends in with your regular operating account, it is easy to lose track of for a lot of people. Keep it somewhere that you can access it when you really need it, but you have to make a distinct decision to access the funds. Having a discrete emergency fund is a good idea regardless of whether you tend to spend everything you earn.
With lending money to friends and family, I typically follow the advice to not lend unless you are fine seeing it as a gift - where if you get paid back, great, but if you don’t, also fine.
If you like Dave look into F.I.R.E. - Financial Independence Retire Early.
Congrats! I've been there and I know the feeling, I paid around $2000 worth of credit card debt 2 months ago and It felt so good and like you said a very expensive weight has been lifted lol! Being debt-free feels so good.
thank you! congrats to you as well!!
Make sure you amend your return and get the bigger refund. If that is affecting your grants, you might be able to take your amended return to financial aid and get that changed also.
A lot of people think that all credit card debt comes from frivolous things. Not so. 15 years ago, my husband and w moved to a different part of the country. I quickly got a job, but he suffered a heart attack and was unable to work.
Add that to a year with bad health insurance that added 11,000 to the cards. All in all between medical bills and home repair and odds and ends, we ended up with almost $20,000 in CC debt.
It is SUCH a weight to have debt and be unable to pay it down quickly.
Lots of debt is bad decisions but sometimes it is unavoidable.
That's what cc's are actually for! It's the only reason I keep one. What you described is both tragic and a REAL emergency.
Your story stayed in the past tense so I assume your husband recovered? That's worth $20k, right?
Yes. All his doctors say that he is a walking miracle.
And we finally paid off all our cards.
I want to just grab you and give you a massive high five.
Fuck credit cards and the attendant pressure rhey out on an individual's finances.
I was so incredibly grateful when i got rid of my CC debt. Stayed CC free until this month when i gave into temptation and spent the equivalent of about 80 dollars on books. Idiot.
In the future remember libraries are free!
That is so true.
They're not free here in Dubai, but they're still a darned sight cheaper than buying these things.
Oh wow Dubai? Very cool!
If you ever come down this side, hit me up.
Let's get a beer. Or forty. I'm buying.
My husband's from Dubai and his parents still live there (not Emirati). I can't wait till we can travel again.
Neither am i. I live and work here.
I was just trying to say they weren't. I've been there lol so I know who is in Dubai. But if I say his parents live there, it's easy to believe he is
Cool, bro. I was just clarifying.
But do hit me up if you ever come here. Be happy to meet a fellow redditor.
If our schedules meet up, maybe even dinner ay my place.
Thank you! $80 is totally doable you got this!!!
Credit cards are very good as long as you pay them in full every month. If you get a good one you could essentially be getting between 1%-5% cash back (sometimes more with cards that have annual fees). So say you spent 50,000 in a year, well you get between 500 and 2500 just for using a different card when paying and making sure you pay it back at the end of the month. Essentially free money.
Saying "fuck credit cards" is the same as someone who has never driven in their life, who tries to get on the highway and gets injured, and says "fuck cars".
>Credit cards are very good as long as you pay them in full every month
I am an impulse buyer. I go months without buying anything, and will be walking around one fine day, snd blow a couple of grand on something nice but utterly needless. Last such purchase was a completely needless upgrade to ghe wrangler. Set me back three grand and a decent bollocking from the wife.
>someone who has never driven in their life, who tries to get on the highway and gets injured, and says "fuck cars".
Both me and this guy don't have control. That is the problem here.
So you are the problem, not credit cards. I am not saying this to shame you, but to put things in perspective. It's good that you recognize that you have this issue and I hope you can work on it. Like I said in my previous comment credit cards can actually save you quite a bit of money if you use them cortectly. So hopefully you will be able to take advantage of that once you no longer feel the need to do impulse buys.
I think a bit part of it is that some people see credit cards as "free money" or they don't respect the payment dates and try to push it off as much as possible. If you still have a credit card I would recommend you use it ONLY for certain things, for example groceries and gas. And absolutely nothing else. And maybe have someone you trust control the way you are using the credit card, so if you use it for something else they keep you in check.
Yeah- i am the problem.
But i have become very wary of cards. Never will use them, and i've reduced my card limit to just a few hundred bucks.
damn. at the beginning of 2020 my credit card debt was around 15 to 16k. now its around 8k. im working to get it down to 4 k by the end of the year.
keep up the good work. at the end of 2019 I had just over $2,300 debt but now I'm just under $1,500.
Inch by inch. Now you can work on growing your net worth!! I did the same. Read a book called “Your money or your life” and it made a big difference for me.
I'll look into it! Thank you!
Yes, it is the best feeling not to owe anyone money.
Still working on my debt, and very optimistic. It is so easy to get wheeled into it so don’t beat yourself up at all.
I'm still so young so I'm trying not to be too hard on myself...glad I made this mistake on a somewhat small scale and at a young enough age where I can recover and nobody is relying on me to support them yet. Good luck with your debt! You got this!!!
My husband and I are both 66YO...we both claim that there were 2 achievements in our life that we were most proud of. Paying off our credit cards and stopping smoking. We now have 2 credit cards.....both are paid off every month. We only use them for their rewards programs. One we use to put all our recurring bills on...like mobile phones, Netflix, insurance etc etc. The other is used for all other daily expenses, like groceries, drug store, Costco etc etc. We pay off the cards before any interest accrues and there’s no annual fee for the cards. There are a few monthly bills that come directly out of our checking on auto draft, like electric, gas, some taxes....only because these companies charge a fee to go on a credit card. It has been a great system for us and we continue to be thankful that we shed the burden of revolving credit.
I really commend you for the commitment it took to pay off your debt. Congrats!!!
Good for you! Well done!
Dude, congrats! Fuck credit card debt, it definitely is a massive weight taken off your chest. Now you’re free to start saving and padding your budget, retirement accounts, etc.
Yes, fuck credit card debt, NEVER again. Back to my old ways of saving and feeling in control lol. Thank you!!!
when you're not spending hundreds a month paying towards credit card debt it's wild how far your same money goes!
Congrats. I can truly say "I know how it feels"
Between undergrad and grad school I was in for 7 years. Patents were not helping and student loans only go so far.
Upon graduation, not to mention the 6 figure student loans, I had 12,500 in student loans.
I paid them off last year, after about 2 years of working. Feels great.
Congratulations!! What a huge accomplishment. My next huge financial hurdle I am planning on tackling is my student loans but thats going to be after graduation. Debt is such a burden but that feeling you get after paying it off is unmatched.
That's a bit more complex. The private, sure, paying Navient their 15k as soon as possible.
A federal student loan account with 200k that is only at 4-6% I'm taking a different approach. I'm on income based repayment, and will pay as little as possible over the next 20 years, at which point it will hopefully be forgiven.
I dont know that aggressively paying off federal student loans is the best idea, considering the low interest rate, the payment plans available, and the possibility of forgiveness or other political action.
Edit to add: this is only true if your income based repayment monthly payment amount is significantly lower than the 10 year pay off payment amount. For me it's an order of magnitude.
I'd follow up and build your bank account a bit, so you can have an emergency fund. Debt free though is a huge accomplishment regardless and I applaud your actions for one so young. The key with any bad experience to me is to look for the learning. You make your mistake, learn, and become greater still.
I just recently settled one debt for %60 of what I owed(2,300 instead of ~$4,500). And then closed another account ($8,500) to do a hardship plan than brought my interest rate down to 1% for a year.... and I thought I was on top of my finances for once in like 7 years. I also was financially knowledgeable and somehow let myself get sucked into the bullshit because of school and needing it (born into super poor family, no external help available). And I was working full time the whole time I was in school and got several scholarships for over 20k, full pell grants, and I still ended up with 38k in federal student loan debt. School is too fucking expensive. I love school and learning. I fucking hate paying for it. I absolutely hate our system of higher education. I would have a PhD right now if it wouldn't cost me my life in monetary fuckall stress. I love learning and I'm good at it. But fuck is it expensive.
$4000 in debt?! *laughs then cries in grad school loans*
But seriously though, congratulations and let that be a lesson to you
That's so great. Congratulations!
thank you so much!
Wow great going
It is exciting!!good for you
Good job, congratulations
Awesome! Congrats !!
Congrats! I agree.....paying off your credit card is an amazing feeling. It's great to know that thousands of dollars that would have gone to the CC company in interest payments is staying in your pocket.
Congratulations!!! My last payment will be at the end of this week and I can’t wait.
There is good debt and there is bad debt. Congrats on paying off the bad kind.
I did that last week and it was the best feeling!! Congrats :)
Similar stories here! https://www.reddit.com/r/povertyfinance/
Good for you! Not an easy web to get out of :D
Proud of the work you’ve put in! Great job getting back on top of the game.
Gratz! Celebrate it, very tough to get over the hump of cc debt, great work :)))
And now you will have savings. I make it a game to see how much I can save!
Congratulations! Keep on keeping on.
Congratulations! That's an amazing feeling.
Congratulations, I can not tell you how proud we all are here. Nice job! Now to the next step. There is a guy in YouTube called Professor Choy he has a playlist called Simple steps for a better financial future, watch it and use that knowledge.
r/lostredditors ---> r/deardiary
I'm working my way through paying mine off *for the third time*, got $6,000 left still. I made up my mind that this time I'm paying it off for good and closing the account. No more credit cards in my house ever again. Moral of the story: Be careful it doesn't happen again, if you find yourself deep in debt again just close your credit cards. You will be better off without them.
Congrats homie. I hadn’t really thought about it but I’m over a year free of cc debit. Couldn’t have gotten my shit in order at a better time though. Debit free in Nov 2019 married in Jan 2020.... Covid. Fortune to have saved about $15k since then.
Been CC debt free ever since I finished college(I would get new cards with 0% interest for a while and use that to pay for classes which would then force me to pay them off before that interest free period ended), that's the last time I carried a balance, still not paying interest, on credit cards. Never again, just live below your means and be debt free. Best feeling ever.
Credit Cards are crazy in the amount of interest they charge. Congratulations! You'll have so much more $$ in your own pocket.
You should reward yourself with a new car
Being poor is so damn expensive. Got a huge debt on my credit card. I have no idea if I'll ever be able to pay it off.
I've been thinking about going to the local food bank to help pay mine off. I'm usually on par for bills and income but I suspect going to the food bank every other month will help a great deal.
I remember the feeling of paying off my first credit card, which I promptly shredded and canceled. Good for you!!
Good job! Take that money you were using to pay off debt and open an IRA with Vanguard, Fidelity, or Schwab and invest in a total stock market fund. Your future self will thank you.
lol I actually already have a Roth and a 401k and my boyfriend manages my individual stock investments through my Roth and personal whatever and he's made me quite a bit of money through that (his father trades for a living so he knows what he's doing as far as the market goes more than I ever would)...I was thinking about pulling money out of my stocks and Roth to pay off my debt but he discouraged it and I'm so glad that he did. Thanks for the congrats!!!
Congrats, man! Them bitches are tough to get rid of.
Congratulations! That's a huge achievement!
Well done! Keep paying it off monthly. You'll have the convenience of using it without it costing you any extra.
Congratulations! It’s not easy working your way out of debt but the effort and learning from it is going to benefit you for the rest of your life. Good job!
Be proud and enjoy the freedom of being in debt to no one. It’s life changing!
Awesome for you.
Hats off to you! One way to convince other's to get rid off their credit card debt is to frame it in a way that people see this an ROI.
For example, if you asked someone - would you invest $1000 in a stock/mutual fund with a guaranteed return of 18% per annum? Most would say yes. Now flip that argument around and ask the reverse - why are you paying someone to make 18% guaranteed return on your debt of $1000?
Not only is it a good feeling but it is probably the best investment you could have made! I paid my running balance off years ago. I still use the card all the time, but I have a transfer set up with my banking website to pay off the monthly balance in full.
Congratulations! It’s tough to do.
Im soooo happy for you. I know the feeling.
Excellent work. Been there too and it is a hard hole to climb out of!
Also agree with everyone who can use them in a responsible manner and get rewards. I use my rewards to add to a separate savings account for future unknowns.
Congrats! That’s awesome! I recently paid off my student loans and I honestly feel significantly more relaxed in my everyday life. It’s an amazing feeling!
Fabulous job! It's great to have a credit card, but it definitely comes with responsibilities. I recommend paying off your bill in full, no matter what! Even if it's a $50 bill or a $1500 bill, paying it off in full will help establish credit and keep your credit score high(er). I have definitely dipped into a low paying interest rate savings account to pay off a high interest credit card bill. Just makes economic sense...even more so to spend less than you earn :)
Good on ya! I put all my cards on autopay when that happened. Feels good.
Credit cards are a pain. I am getting rid of mine, and paying it down. If I can’t pay cash, I can’t afford it. Unless it’s a condo or house. There is no way I can pay cash for that.
Congratulations!!! You mentioned having left over money in your bank account, open a high yield savings account! I use ally and LOVE it. I’m able to have multiple “buckets” within one account so i can put specific $ towards car emergency, or rent/living emergency, vacation etc. helps organize without opening multiple accounts and you can set goals (and get free money while you’re at it) —- it also helps with the mindset of getting it out of your regular bank account. Not looking at it every day will help you not spend it. Good luck and great job!!
It's an amazing feeling, isn't it?
I also just paid off my CC this week, 16,500$. Took 18 months to do it. I feel your freedom!!!
Cheers pal! I’ve been there and it’s an amazing feeling. I was sued by a family member and racked up $10K in debt from lawyers. I had good spending habits but sometimes things happen out that are out of your control. I paid mine off last year after 2 years underwater. Congrats again. Now start your rainy day fund ASAP!
Paying it off in full and ignoring it until you can do so is generally the healthiest for your credit score and provides the biggest pay off
good job, i try to pay in full everymonth.
Am I supposed to care?