Why We Stopped Using Credit Cards

We have paid off almost $6,000 in credit card debt.  We had a total of 7 credit cards.  These credit cards included, medical, retail, and banking.

We have vowed from this point on not to ever use one again.  Won't that hurt our credit scores? Probably.  However, we don't really need a credit score.  (I will explain more later.)

The following image is from www.myfico.com:

How a Fico Score is broken down:

Your credit score is only based on how much DEBT you have accumulated.

Fabian and I, young in adulthood, discovered credit cards thinking that's what every American has and needs.  We went to Bank of America and applied.  We were so excited to be approved and start earning our reward points!! Reward points, uh dumb.  You know I still had left over reward points totaling $15 from my credit card.  I couldn't use them toward the credit card though because it didn't total up to $30.  There the points sat never to be used. The credit card companies are out to scam you, not help you.

Why do we get so excited to be approved for a credit card? I mean, how stupid is that? We borrow so much money that our credit score is awesome.  All this means is that we're a slave to this company.  Our paycheck goes to these payments instead of where we actually want our paycheck to go.

We never have had a late payment on any credit card.  We might not have had enough money for food, but that was okay. We would just go out to eat and put it on the credit card.  #dumb

The main reasons for using our credit cards were for emergencies, clothes, and restaurants.

Emergency: Can I stress again how important having a beginner emergency fund of $1,000 is?  Not having an emergency fund is one of the most common uses for credit cards! We used the medical credit card because our dog got heart warms and Fabian needed a root canal. Both incidences were months apart.  Had we been saving instead of eating out every other night, I am certain we could have paid cash for said emergencies.  Instead we have paid hundreds of dollars in interest and annual fees.

What if you or your spouse loses his/her job and you owe money to all these different credit card companies and maybe also a car payment? #Scary Again, an emergency fund is a MUST!

Clothes: Only buy what you need. If your underwear or socks have holes in them, you might need to buy some new ones (with cash).  That cute must-have blouse in the store does not count as a "need". Talking to myself here.

Restaurants: Must I say more? So expensive.  Every now and then is fine (with cash).  More than twice a week is seriously pushing it.

My personal favorite reasons for not using credit cards:

1. I don't have to remember when every stinking payment is due
2. My wallet is slightly less cluttered
3. I don't owe any company money
4. These companies are not longer ripping me off with interest fees and annual fees

One thing I mentioned in a prior blog was that Fabian and I were paying $600 toward debt related payments every month. If we didn't have these payments, what could we do with this money?  We could have more opportunities to give and to bless others.  We could go traveling wherever we wanted. Our money would wholly be ours to do with what we please.

One of my favorite statements I get told about credit cards is "I pay it off every month". That's great, really.  But, I'm talking about a mind set.  A mind set about choosing not to borrow money from companies that basically own you.  A mind set that if I can't pay cash for it than I can't afford it. If I can't afford said thing, than I don't need it.  In the book of Proverbs it states that "...the borrower is slave to the lender.."

My husband and I refuse to be any person's slave.  We are free in Christ. We will live like we were truly meant to live.

Free. 

Would you like to get started paying off credit cards? Awesome.  First, get $1,000 saved! Remember not having an emergency fund is the most common reason for credit card use. Start by budgeting (Budeting Help) and putting every extra dollar toward saving. After you have finished saving, start using the same tools you used for saving and throw that money toward the smallest credit card debt.

Why the smallest? Setting baby steps and little goals first is essential to establishing momentum.  If you want to run a marathon, but haven't ran in a year, should you just go outside and run 26 miles? No, of course not! You should probably start by running in small intervals and then lead up to longer running intervals to complete your goal. Same goes for credit card debt.  The two are commonly interchangable. Start with the smallest.

It takes discipline and having a plan to reach a goal!

Happy Debt-Killing,
Leah