Friday, March 26, 2010

At The Top Of The Credit Mountain

Since the beginning of the year, it has been my extreme priority to pay off our credit cards and other loans, in order to ease our monthly budget. Yes, we got stuck in that rut and it is a huge burden to pay those blasted cards off each month. Well, not even pay them off, just to get by with the minimum or a little more than the minimum payment. I have allotted a set amount of money in our budget each month to pay off credit cards. Thankfully, I have paid off 4 cards since January, and closed them!

In paying them off, I started with the smallest balanced card. Paying that amount sometimes left me the rest of my budget money to pay towards another card. So, that is how it has been progressing each month, so easily honestly.

I have also taken the cards that we have a balance on out of my wallet to avoid the temptation of using them. The only thing with that is if you forget another form of payment when you are in the grocery store. This happened to me yesterday. I had cash enough for a certain amount and couldn't find my bank card to pay the difference, and of course since there was no credit card. I had the lovely, somewhat embarrassing task of taking items out of bags and giving them back. It wasn't too bad, because it wasn't necessities, but it did take time and I hate feeling like I'm holding others up. Oddly enough, when I took out those 4 items that I didn't have to have, the total was exactly the amount of cash I even dollar amount! Of course, I didn't charge anything that didn't need to be charged, so that is good too!

As April begins, we have 2 cards left which of course are the highest amounts. The tax return will be paying a portion of one for something we purchased designated towards buying with that money anyway.

I feel like I have finally reached the peak of the credit mountain and it will be downhill from here. We of course still have two loans to pay off, but the credit budget will then become the loan payment budget, in addition to what we are required to pay on those each month.

I strongly encourage you to not even fall into the lure that you have to have a credit card for good credit or even that it is necessary for spending. It is just an endless cycle of charging and paying, charging and paying. Your mortgage, utilities and other bills are enough that you can have good credit without using credit cards. Really, why do you need credit if you are able to pay with your bank account or cash anyway?! If it is something you can't afford, you probably don't need it anyway!

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