How I Got Out Of Credit Card Debt
I knew I was in trouble when I was getting phone calls from creditors. It was definitely time to clean up my act. Luckily I had a job, so with some big changes to my lifestyle I’d be able to work on fixing my debt situation. I started by looking for advice on the internet and found ways to approach my situation.
I printed up all my credit card statements and just about had a heart attack! I had no idea my interest rates were so high! I now could see that the new dining room furniture set I’d just bought was costing me much more than I thought. It was time to really get this sorted out. I also didn’t know how bad my debt was, and quickly totaled it up to see the amount was in the $15,000 range.
So the articles I read recommended I next destroy my credit cards, so I did. I just took a pair of scissors and cut them up into tiny little pieces. I had fun with it and really shredded them, and they ended up all over the carpet. I pulled out my dyson upright vacuum cleaner and sucked up all the little bits of plastic and felt totally liberated.
Next, I organized my debts in order of which had the highest balance. The ones with the lowest balance were paid first, then I’d pay the minimum on the rest. This is called ‘Snowballing’ your debt. I successfully killed one card in the first month, and another the next, after that was a slow and steady progression of payments on all my cards. By the end of year 3, I had only two cards left to pay and had sliced my debt to almost nothing.
Next I phoned my remaining creditors and told them I was insisting they lower my credit rating. I told them if they didn’t, I’d move the balance to another card. After being transferred to different agents, both card issuers agreed, and I managed to get both APR’s down to only 8.9%! All I had to do was ask. This made paying the two cards off even easier since I wasn’t adding a big chunk of finance fees each month.
Now I’ve learned to spend much more wisely. If I have to pay credit, I tell myself I don’t need it. I still keep a couple of cards open for emergency use, but it’s not like before when I’d just use a card to buy lunch.
Now life is virtually stress free without that cloud hanging over my head. I can rest easy in my full size loft bed every single night knowing my finances are in good shape.
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