Paid off Credit Card Debit for the first time in 19 years. Reps until I'm out

[DustinTheHuss]

*Debt! Not Debit lol.

I've accumulated $1-3,000 a year in credit card debt once we had our daughter. I never had credit card debt before then, but I did take 4 years off to stay home with her and things got really tough then. It was worth every penny, though! It actually peaked even higher at $22,000 4 years ago as I was in a tough situation at home and traveling to Florida often, so I took out a lower interest home loan because I found myself getting behind in the interest of $250 a month. I was able to get the debt reduced to $8,000, and I just paid it off!

I sold a ton of items on eBay that I never use, such as wedding china and stemware. This really helped with inflation and no pay increases over the past couple of years.

I definitely don't want to get in this situation again so I am budgeting better.

[tripod29]

As you know, it's very rare (if ever) I say anything nice to you bc of what you are. But if this is true, GJDM. Srs, vry srs. Cut those things up and only purchase what you actually can afford


Inb4 debtcels and "muh points "

[Tshadows]

Congrats on doing that.

[mtpockets]

Well done Dusty!! Congrats girl...

[OldFartTom]

Many years ago I had a credit card debt, was only relatively small, but I couldn't see how to pay it. I got a consolidation loan and used that to pay it (destroyed card and closed credit card was part of the deal). When I got the Loan paid (2 years) it felt good. A huge weight off my shoulders.

I use credit cards again, necessity, but never will go back to that debt again, I still remember the worry that I had in the very back of my mind.

Really good to hear you paid it and closed it (tell us you also you closed the account and snipped up the card??)

Enjoy that feeling!

[jreacher]

Good job. That's not easy to pay off that much with the high interest rates on credit cards. I'm happy for you.

[induced_drag]

Glad for you. Never go back. It is a shame how many people fall prey to the endless cycle.

Only thing I say now, is use them to your advantage. Also teach your kids to use them. (properly).

One thing many dont know is at 16 you can add your child as 'authorized user'. This automatically transfers your credit to them. So they can start building credit at an early age. Credit score has far reaching impacts these days. Auto insurance premiums...etc. If you dont educate your kids on how the navigate the financial system, they are doomed to repeat others mistakes and fall into the traps.

The schools teach all kinds of useless garbage to our kids. They should take a small portion of that time and educate them on how to navigate the world of finance and credit and how large an impact it will have on their lives.

[DustinTheHuss]

Glad for you. Never go back. It is a shame how many people fall prey to the endless cycle.

Only thing I say now, is use them to your advantage. Also teach your kids to use them. (properly).

One thing many dont know is at 16 you can add your child as 'authorized user'. This automatically transfers your credit to them. So they can start building credit at an early age. Credit score has far reaching impacts these days. Auto insurance premiums...etc. If you dont educate your kids on how the navigate the financial system, they are doomed to repeat others mistakes and fall into the traps.

The schools teach all kinds of useless garbage to our kids. They should take a small portion of that time and educate them on how to navigate the world of finance and credit and how large an impact it will have on their lives.

I did not know that. I remember my parents had me open a credit card account with a $500 limit when I was in college so I could build credit and learn about finances, even though I took finance classes.

Good job. That's not easy to pay off that much with the high interest rates on credit cards. I'm happy for you.

Thank you jreacher! It was a definite wake-up call that I was living beyond my means.

Many years ago I had a credit card debt, was only relatively small, but I couldn't see how to pay it. I got a consolidation loan and used that to pay it (destroyed card and closed credit card was part of the deal). When I got the Loan paid (2 years) it felt good. A huge weight off my shoulders.

I use credit cards again, necessity, but never will go back to that debt again, I still remember the worry that I had in the very back of my mind.

Really good to hear you paid it and closed it (tell us you also you closed the account and snipped up the card??)

Enjoy that feeling!

Well, that's the tough part as my husband doesn't like using the debit card for small charges here and there as he has to then manually enter those expenses into Quicken.

Come to think of it, maybe there is a way I can get one with a pre-fixed spending limit, like $500 a month, so I don't get in this mess again. Then gas and food purchases from our work cafe can go on there, as they only accept cards.

I read somewhere the average US credit card balance is $9,000, and here I had $22,000! But again a lot of that was for trips to Florida as my husband and daughter were ganging up on me and calling me names so I needed a way to escape to control my mental health.

Well done Dusty!! Congrats girl...

Thank you!

Congrats on doing that.

Thank you!

[mtpockets]

"muh points "

Das me

I buy everything on credit... Everything...

And have it set to pay the cards off at the end of every month so there is no interest.


A couple of years back that paid for a trip to Vegas

If they are going to pay me to use it.

I will.

[OGfrom06]

Congrats

Credit cards are EVIL TEMPTATIONS!

Their Evilness far outweighs their benefits

[Plateauplower]

Das me

I buy everything on credit... Everything...

And have it set to pay the cards off at the end of every month so there is no interest.


A couple of years back that paid for a trip to Vegas

If they are going to pay me to use it.

I will.

I do the same but take all the proceeds as statement credits. Not sure how that works but no 1099s despite around $2000+/year in essentially getting cash back. Currently using Amazon Prime card, but Amazon is declining in value to me with changes to prime video, prices being higher than other places and I might cancel my prime membership and try to find a new card. I tried to buy my last truck on that credit card, but the dealership wouldn't let me.

[BogSniper]

*Debt! Not Debit lol.

I've accumulated $1-3,000 a year in credit card debt once we had our daughter. I never had credit card debt before then, but I did take 4 years off to stay home with her and things got really tough then. It was worth every penny, though! It actually peaked even higher at $22,000 4 years ago as I was in a tough situation at home and traveling to Florida often, so I took out a lower interest home loan because I found myself getting behind in the interest of $250 a month. I was able to get the debt reduced to $8,000, and I just paid it off!

I sold a ton of items on eBay that I never use, such as wedding china and stemware. This really helped with inflation and no pay increases over the past couple of years.

I definitely don't want to get in this situation again so I am budgeting better.

This is fantastic news. To some, it may not mean much, to others, it may seem impossible. Paying off debt requires a lot of energy and focus, like bodybuilding.

Interest on 22k of cc debt isn't fun. I'm glad you've learned.

I had a divorce a few years ago and up until that point, I had carelessly spent and consolidated debt for years. The divorce and subsequent insolvency made me do a complete 180 on my spending and now I have better restraint. Glad to you do as well. That's the key. Not to mention how depressing it was to always have debt hanging over your head. I bet your lifts are much more enjoyable too, now that you're enjoying your new milestone.

Boooom

[induced_drag]

I do the same but take all the proceeds as statement credits. Not sure how that works but no 1099s despite around $2000+/year in essentially getting cash back. Currently using Amazon Prime card, but Amazon is declining in value to me with changes to prime video, prices being higher than other places and I might cancel my prime membership and try to find a new card. I tried to buy my last truck on that credit card, but the dealership wouldn't let me.

I hate paying for cell phones more than anything. My son broke his old iphone. I think it was a old X to give you an idea of age. He has never broken a phone before and is good with his stuff. I was shocked to see what Iphones run. (I am an android guy).

I took the sting out of it by using Amazon points. I had not used any in a while, and it did not feel as bad to pay $900 for a cell phone since it was costing me anything out of pocket. Silly, yes, but somehow makes me feel better.

Just bought new tires for my truck on Amazon. Same price as discount tire, but got the 6% back and they ship them to my local tire place and they get put on. Another $90 in amazon points right there!

Hate to give them so much money because the power they hold, but they make everything so easy....and anytime we have ever had an issue, their customer service has been incredible. EG....ordered my son a new computer processor which was like $500. It came and someone had pulled it out of package. (so nothing in the package). They did not even question me. Just shipped me a new one...no questions asked.

[Plateauplower]

I hate paying for cell phones more than anything. My son broke his old iphone. I think it was a old X to give you an idea of age. He has never broken a phone before and is good with his stuff. I was shocked to see what Iphones run. (I am an android guy).

I took the sting out of it by using Amazon points. I had not used any in a while, and it did not feel as bad to pay $900 for a cell phone since it was costing me anything out of pocket. Silly, yes, but somehow makes me feel better.

Just bought new tires for my truck on Amazon. Same price as discount tire, but got the 6% back and they ship them to my local tire place and they get put on. Another $90 in amazon points right there!

Hate to give them so much money because the power they hold, but they make everything so easy....and anytime we have ever had an issue, their customer service has been incredible. EG....ordered my son a new computer processor which was like $500. It came and someone had pulled it out of package. (so nothing in the package). They did not even question me. Just shipped me a new one...no questions asked.

I agree, it does take the sting out of unplanned expenses being essentially "free money". I had been saving my points for a while and it completely took care of Christmas this year. I typically average $2000-$5,000 per month in credit card purchases (paid off in full following month) depending on time of the year and needs (i.e. what breaks, needs replaced, kids' activities etc.). I also enjoy the protections from using a credit card. Amazon still has some great deals if you catch them, but lately I have been noticing that many of the same things are cheaper at Sam's club or other online retailers. Their customer service is hard to beat, but they are making it hard to get ahold of someone other than their AI for issues. It made me mad that they now want extra subscription fees for commercial free prime TV which was not that great to begin with. It also made me mad when they stopped Amazon Smile, I enjoyed making them donate to the Second Amendment Foundation lol.

[induced_drag]

It made me mad that they now want extra subscription fees for commercial free prime TV

Me too! I did not pay it....but at some point I might....who knows. Sucks the way everything is going at times....I feel stupid that I am part of the problem. But we have amazon coming here a few times a week.

Same with us on CC. We pretty much run everything through credit card, then pay them off every month. Since we are getting into more traveling now that my son is going to be racing, I got a few different cards for hotel points. Already paid off with a 'free' stay. Just little things that add up. Hell, for some reason I never had a Home Depot credit card. I just bought about $500 with of dewalt stackable tool boxes as I love their new system and again, traveling more with racing I needed an upgrade. Saw a thing at check out and they gave me $50 off the order if I took out a card. No-brainer for sure!


I did not grow up being taught about financial literacy. My father was a terrible example as well and no one to learn about being responsible from. Out of college I defaulted on my student loans (not knowing any better). My wife helped me get my act together as she has always been very organized with things. Now we teach our kids. I would never have a 800+ score if it were not for my wife's help . But I recognize the importance in this day and age, and we started educating our kids young on how to use the system vs being a slave to it.

[Plateauplower]

Me too! I did not pay it....but at some point I might....who knows. Sucks the way everything is going at times....I feel stupid that I am part of the problem. But we have amazon coming here a few times a week.

Same with us on CC. We pretty much run everything through credit card, then pay them off every month. Since we are getting into more traveling now that my son is going to be racing, I got a few different cards for hotel points. Already paid off with a 'free' stay. Just little things that add up. Hell, for some reason I never had a Home Depot credit card. I just bought about $500 with of dewalt stackable tool boxes as I love their new system and again, traveling more with racing I needed an upgrade. Saw a thing at check out and they gave me $50 off the order if I took out a card. No-brainer for sure!


I did not grow up being taught about financial literacy. My father was a terrible example as well and no one to learn about being responsible from. Out of college I defaulted on my student loans (not knowing any better). My wife helped me get my act together as she has always been very organized with things. Now we teach our kids. I would never have a 800+ score if it were not for my wife's help . But I recognize the importance in this day and age, and we started educating our kids young on how to use the system vs being a slave to it.

You will certainly rack up points racing, very expensive hobby/sport. My friend's son races stock cars (asphalt oval tracks). Started out in the little midget cars that run on generator motors, then to the 900cc Yamaha motorcycle engine cars, and has been racing the 600HP sportsman class for several years (rookie of the year, always in the top 5 by the end of the season). Being competitive you pretty much have to make it a part of your life. During the season its races every weekend, working on the car during the week. This time of year, they are tearing down cars sending motors for rebuilds etc. I've worked in their pit a number of times and had an absolute blast and learned a lot. It's crazy the number of changes made for track conditions, weather, etc. Still can't believe how much tire pressure changes from cold to where they end up with the friction/heat from running a race. Based on what I've seen for your cars/ racing type if you have not already you will likely run into my cousin in-law Preston. He is the head friction engineer of EBC brake pads and specializes in racing applications for super cars etc. He's a solid and smart younger dude (early mid 30s). He gets paid to go to a lot of big events and does some racing himself in the company cars.

[induced_drag]

You will certainly rack up points racing, very expensive hobby/sport. My friend's son races stock cars (asphalt oval tracks). Started out in the little midget cars that run on generator motors, then to the 900cc Yamaha motorcycle engine cars, and has been racing the 600HP sportsman class for several years (rookie of the year, always in the top 5 by the end of the season). Being competitive you pretty much have to make it a part of your life. During the season its races every weekend, working on the car during the week. This time of year, they are tearing down cars sending motors for rebuilds etc. I've worked in their pit a number of times and had an absolute blast and learned a lot. It's crazy the number of changes made for track conditions, weather, etc. Still can't believe how much tire pressure changes from cold to where they end up with the friction/heat from running a race. Based on what I've seen for your cars/ racing type if you have not already you will likely run into my cousin in-law Preston. He is the head friction engineer of EBC brake pads and specializes in racing applications for super cars etc. He's a solid and smart younger dude (early mid 30s). He gets paid to go to a lot of big events and does some racing himself in the company cars.

That is awesome and VERY familiar with EBC. It is really cool to see the engineering paths in motorsports. One thing I would like my son to consider, but he just wants to drive right now . Great to be 16...but I fully well know that he will not be in formula 1. I do however think there is a good chance he can go 'pro'. Not at all by my assessment, but others who know motorsport. We are going to give it a shot as a family. It is crazy and not what we planned on, but life sometimes makes plans for you and shows you the way.

I have sold 4 cars in the past 3 months and we are now dedicated for a year of racing. Kept the McLaren and our Lotus 211 race car and bought him a Spec Racer Ford gen III. That is the class he is racing. He got his full competition license in SCCA and Spec Racer Ford is one of, if not the most competitive class in SCCA. "Fixed" class so only one motor and transmission supplier, and very tight specs for everything meaning you cant just spend more money to go faster.

Nuts....yes, but we only go around once and as a dad I am going to dedicate myself to this for the next few years at least. We are working with a race team out of Georgia for now. You have to run with a team to even be competitive. Not many 'privateers' are successful. You really need the knowledge base on setup...etc. But I cant help but get my hands a little dirty in the process

Unfortunately, he put the car in the wall at 70 mph at Sebring last month so we started off the season with 30k in damages, but a cold dose of reality of what racing will be! He took it well and most important was unhurt.

[ajdahlheimer]

One thing many dont know is at 16 you can add your child as 'authorized user'.

Yep, I did that for my two oldest children and then they got their own credit cards when they turned 18. I showed them how you pay it off each month and you always want the bold line items on the monthly statement (Fees Charged & Interest Charged) to be $0.00

[ajdahlheimer]

Currently using Amazon Prime card, but Amazon is declining in value to me with changes to prime video, prices being higher than other places and I might cancel my prime membership and try to find a new card.

I have that Amazon Card as well. The thing that keeps me a Prime member personally is the free shipping. My household orders a lot of packages, plus I can ship to my son who is 100+ miles away at college too. Prime membership gets paid for really quick with just the free shipping alone.

[Plateauplower]

That is awesome and VERY familiar with EBC. It is really cool to see the engineering paths in motorsports. One thing I would like my son to consider, but he just wants to drive right now . Great to be 16...but I fully well know that he will not be in formula 1. I do however think there is a good chance he can go 'pro'. Not at all by my assessment, but others who know motorsport. We are going to give it a shot as a family. It is crazy and not what we planned on, but life sometimes makes plans for you and shows you the way.

I have sold 4 cars in the past 3 months and we are now dedicated for a year of racing. Kept the McLaren and our Lotus 211 race car and bought him a Spec Racer Ford gen III. That is the class he is racing. He got his full competition license in SCCA and Spec Racer Ford is one of, if not the most competitive class in SCCA. "Fixed" class so only one motor and transmission supplier, and very tight specs for everything meaning you cant just spend more money to go faster.

Nuts....yes, but we only go around once and as a dad I am going to dedicate myself to this for the next few years at least. We are working with a race team out of Georgia for now. You have to run with a team to even be competitive. Not many 'privateers' are successful. You really need the knowledge base on setup...etc. But I cant help but get my hands a little dirty in the process

Unfortunately, he put the car in the wall at 70 mph at Sebring last month so we started off the season with 30k in damages, but a cold dose of reality of what racing will be! He took it well and most important was unhurt.

My friend's son who races just finished his BS in mech engineering and is currently on a free ride for his masters. He too would rather race than work in the industry but there are a lot of niche markets out there. The circuit or organization that he races in is VERY controlled as well to prevent the most money from winning every race. They are even limited to the number of tires they can buy, amount of stagger, height, the cost of each shock, etc. Not that cheating doesn't go on, but the is a serious effort to keep it fair across the cars.

Well can't be mad about a younger driver testing limits and putting the car into the wall, it's going to happen. What will make you really mad is the occasional azzhole that races dirty and causes him to be put into the wall, spin out etc.

[Plateauplower]

I have that Amazon Card as well. The thing that keeps me a Prime member personally is the free shipping. My household orders a lot of packages, plus I can ship to my son who is 100+ miles away at college too. Prime membership gets paid for really quick with just the free shipping alone.

Yeah, that is a nice part that I forget about until I want to send something to my mom, wife's family etc.

[Bando]

Going against the grain here but I don't have any cards or debts, so I don't have a credit score at all. I just pay cash.

Das me

I buy everything on credit... Everything...

And have it set to pay the cards off at the end of every month so there is no interest.


A couple of years back that paid for a trip to Vegas

If they are going to pay me to use it.

I will.

Everybody I know is "beating the credit card company at their own game."

Here's the Capital One headquarters:



They employ 56 thousand people.

I'm not great at math but my spidey sense tells me not everyone is winning with credit card run arounds.

[DustinTheHuss]

Going against the grain here but I don't have any cards or debts, so I don't have a credit score at all. I just pay cash.



Everybody I know is "beating the credit card company at their own game."

Here's the Capital One headquarters:



They employ 56 thousand people.

I'm not great at math but my spidey sense tells me not everyone is winning with credit card run arounds.

What do you do if your washer or dryer break down and you don't have the cash to buy a new one?

Or you lost your job and you still have bills to pay?

In addition, a lot of places in my area no longer are taking cash--cards only.

[tripod29]

What do you do if your washer or dryer break down and you don't have the cash to buy a new one?

Or you lost your job and you still have bills to pay?

In addition, a lot of places in my area no longer are taking cash--cards only.

If you can't cash flow something as minor as a washer and dryer you clearly don't have an emergency fund. Same goes for if you lose your job.

You've done the first step in eliminating cc debt, now stack cash for an EF, or continue to be a debtcel.

[ajdahlheimer]

What do you do if your washer or dryer break down and you don't have the cash to buy a new one?

If you don't have the cash on hand, finding a place that will give you 0% financing for a specified term is a good route to go. Just make sure it gets paid off within the term or you will get charged all of the back interest at a very high rate. People can still make smart financial decisions w/o having to be able to pay for items all at once. Granted you will need good credit to take advantage of these type of offers.

Or you lost your job and you still have bills to pay?

That's why it is important to plan for such things when times are good/better. Congrats on paying off your credit cards. It might be smart since that debt is no longer going out each month--to save all or a percentage of it going forward.

I've never had any credit card debt, have no student loans, and own all my vehicles. I think I owe it just to never trying to live above my means, but I really enjoy the simpler things in life.

-AJ

[Payton1221]

Wait until you pay your mortgage off. That's a very liberating feeling. After losing literally half of our retirement from the high of 2008 to the low of 2009, I shifted a lot of the new money that would have gone into the market into my mortgage, and we paid off our house in 2017.

[Karl_Hungus]

Going against the grain here but I don't have any cards or debts, so I don't have a credit score at all. I just pay cash.



Everybody I know is "beating the credit card company at their own game."

Here's the Capital One headquarters:



They employ 56 thousand people.

I'm not great at math but my spidey sense tells me not everyone is winning with credit card run arounds.

Was wondering when you were going to make it to this thread .

I know this is what Dave Ramsey teaches, and while I think his advice is largely solid, I disagree a little bit on the credit card thing. I think he is correct in that most people would be better off without credit cards. A little self-discipline can prevent you from getting bilked by the credit card companies, but most people don't have that kind of discipline -- and the people who call his show certainly don't. I agree with you though -- no debt now or ever.

[Bando]

In addition, a lot of places in my area no longer are taking cash--cards only.

This is super annoying but I can see why they don't want the hassle of counting cash, risk of robbery etc.

I have a debit card, and you can just by gift card with cash, works like a CC.

[Kewbrah]

I pay off my credit card in full each 2 weeks. Usually around $5k.

[induced_drag]

Was wondering when you were going to make it to this thread .

I know this is what Dave Ramsey teaches, and while I think his advice is largely solid, I disagree a little bit on the credit card thing. I think he is correct in that most people would be better off without credit cards. A little self-discipline can prevent you from getting bilked by the credit card companies, but most people don't have that kind of discipline -- and the people who call his show certainly don't. I agree with you though -- no debt now or ever.

I used to think this way. Never carried any debt. Since I was 25. Never even had a mortgage. If I could not pay for something, I saved until I could I could buy it. That even applied to the money I needed to build my first home. In the last few years I have met some very successful people who have since become good friends. People who have achieved much greater success than I have and very smart people. I was never taught anything about business, and just found myself starting my own at 23 and doing what I knew. Work hard. Well, there is a thing to making your money work for you and if I had I would probably easily have 3-4x what I have now. I dont have regret, but feel kind of silly for being so debt averse.

There is such a thing as 'good debt'. Especially in real estate. I have a handful of rental homes, all owned free and clear. THAT is a huge mistake. Most savvy real estate (long term) always keep debt on their properties. It helps balance tax basis, and as the props appreciate, you pull out the money tax free. I should be using some of the appreciation some of my properties have made. I dont need it for lifestyle, but accessing the appreciation just from last few years is 7 figures and even just using a portion of that will allow me to buy more investment properties. Increase cash flow...etc.

So I found myself with good credit, but not great. Last year I was looking to start down the path where I could structure myself to go down this path. My credit score was 760, but I was told since I had no real debt or loan history, it would be hard to finance anything. So that is why I financed part of the McLaren I bought early this year. I had the cash for it, but I borrowed about 50%. After 6 months, my credit jumped to 820. This year I am going to bring on some good debt, while still keeping a comfortable debt to income ratio. I am going to start using other peoples money to put me into a better position as I pass towards retirement.

I always held up on projects until I could fund them cash, but being able to access capitol, especially in the form of equity you already have, is a powerful tool. It has a double end effect in reducing tax basis and gives great flexibility. Just dont stick your neck out too far and dont get greedy and over-lever.

So I am no longer a believer in no debt. Especially if you deal in real estate for your investment strategy.