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 highest balance were to paid off first, and you pay just the minimum on the rest. This is what experts call the ‘Snowball’ approach to getting rid of debt. In my first payment, I wiped out one card and paid the minimum on the rest. The second month, I put a nice dent in my Mastercard bill and it went on like this for about three years. By the end of year three I had only two cards left and only about $4000 left to pay.
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.
The feeling from taming your debt is so amazing. I know now I’ll never get calls again from debt collectors, and I can sleep nice and easy every night on my comfy full size loft bed.