I am now credit card free

[j706]

Well, I just paid off my credit card, and had the account closed for good.

No more credit cards for the lovemachine.

I did the same about 10 years ago. It was a big hurtle to overcome. I dug in like a tick and it was a chilly marriage for a while. IMO credit is for homes,cars ect. If we don't have the cash it will wait. We do a lot of waiting to but it is worth it.

 

[IndyUSMC]

I use my cards like cash and make sure the have no annual fee and I get airline and hotel miles. I pay them off in full each month and will charge everything from a $3.00 coffee to my car insurance and more.

 

[Vince49]

When I traveled for a living,30 plus years, I carried two cards of my own and usually three or four company cards. I retired from that rat race in '96 turned in the company cards and got rid of mine a couple of years later. I have not had a credit card for nearly twelve years now. My debit card has a Master Card logo but is a debit only card. It still works for rental cars and airline tickets if I need them in an emergency though, unfortunately I have had to use it for such on a couple of occasions.

 

[bluewraith]

My credit is trashed from being young and dumb with CCs.

But, the bright side is my next car payment will be the last payment I have to make on it.
I also used to use my debit card for EVERYTHING, but I've gotten back into the habit of carrying a little bit of cash on me. The only things I use my debit card for now is gas and online purchases. Bills get paid via check in the mail now, instead of online. It's a lot easier to keep track of my account balance that way, thats for sure. Also, by using cash the money feels that much more "real" and you second guess if you really need that candy bar or soda.

 

[mbills2223]

I got in a little deeper than I should have when I first got a credit card, and it felt SO good to finally pay it off. Glad I learned my lesson early without too much suffering! Congratulations!

 

[smokingman]

Be very careful of closed cards and check any bills you get from a closed card(ie do not just throw them away as junk mail).We had one bank credit card that was very difficult to close.Each month they sent a bill of 4 dollars for an "inactivity fee".
It was an ongoing argument for 4 months.I was sick of the game finally and had an attorney contact them,the card was closed after that month.Just be aware a verbal request to cancel or close a card has no legal standing.It must be in writing.They may accept a verbal closing,but legally it is better to send it in writing with any payment due.

 

[jblomenberg16]

Congrats...amazing how good you feel, huh?!

 

[BehindBlueI's]

I use my cards like cash and make sure the have no annual fee and I get airline and hotel miles. I pay them off in full each month and will charge everything from a $3.00 coffee to my car insurance and more.

Same here, except I get cash back. I did the whole "pay them off and cut them up" thing when I got out of the Army. Then I needed a plane ticket and a hotel, and it was a huge PITA without a CC. Now I have two, one with a good cash back program and one with a low conversion rate for use overseas. I pay it off every 2 weeks when I get paid, my credit score is fantastic, and I keep all my expenses and tax deductions documented and neatly organized in Quicken via an easy download.

Cash may be king, but smart use of credit cards will save you money in the long and short term.

 

[jfed85]

Congrats...currently fighting that battle now. Realized using them irresponsibly was stupid. Stopped using then now just trying to pay them down. Sucks when you get paid then watch it all go away to CC payments. But ill get there. Slowly but surely.

 

[Bunnykid68]

What took you so long? 14 years for me? I am still broke though, just no credit cards.

 

[Cameramonkey]

Yep. having one or two CCs with zero balances are better than no credit. Both for your credit score and your ability to charge something like a hotel, rental car, etc. without tying up undue amounts of cash (excessive holds).

In theory Ramsey is OK. In practice he's an insufferable, arrogant douchebag who lives in a dream world. Ive listened to him several times but had to turn the dial. I couldnt stand the unreasonable "extremist" attitude he takes with his callers based on his "you dont need any credit cards, even if you travel. Just keep loads of cash in your account to cover the holds." and other crazy talk.


Yes, unsecured debt is bad. But to claim that all you need is cash/debit and you dont need ANY open lines of credit regardless of whether you dont carry a balance by paying it off every month is unreasonable.

 

[Bunnykid68]

Cash is king but it makes you a threat to the powers that be.

 

[Cemetery-man]

Congrats. I am c.c debt free also; but, I keep one around for reservations on flights and cars

Same here. You almost have to have a CC since many places won't let you use a debit card or the limit is too low to make reservations, book vacations, etc.

Getting out of credit card debt was a GREAT feeling and in one month I will pay off my mortgage and be totally debt free. That will even be a GREATER feeling!

 

[sb0]

There's nothing wrong with credit cards if you handle them properly. Treat them like cash (deferred for no more than 30 days) and set up auto payment.

Closing your old accounts, balance or no, is not good for your credit. I have probably 20 open accounts now with a couple hundred bucks total on them. Keeps your utilization low, and the older ones increase the average age of your credit lines. I'm 24 and I've been having cards since I was 18, at my age the average age of your credit lines will tend to be low for obvious reasons so leaving them open is a major plus.

It's only thanks to credit cards that I have a 760+ credit score now which definitely looks good on my mortgage applications. Never taken any kind of loan or anything so that's all I've got to show when they run my credit report.

Not bragging or anything, I'm just saying it's a useful tool. I've fallen into a bit of debt myself in the past, but nothing I couldn't handle and it was well worth it for the credit history.

I actually did cut up and throw away a lot of my cards, I just never closed the accounts. I ran up $6K in debt at 22 (the joys of trying to start your own business) and that's when I realized that credit cards were fine so long as you don't treat them like credit cards. Pretend it's a debit card and pay it off in full every month.

I guess it's like a firearm. It's a tool that can be used for good or bad.

 

[Cemetery-man]

I realized that credit cards were fine so long as you​

don'ttreat them like credit cards. Pretend it's a debit card and pay it off in full every month.

And that's great advice!!

I let my card work for me. I took it out a long time ago when I went on a cruise and I get cash credits toward future cruises every time I use it. For that reason, I make a point to use it frequently to get the benefits then I pay it off every month. So in all actuality it's a win-win situation, I get affordable cruise vacations every couple of years plus I help maintain my credit score at the same time.

 

[sb0]

And that's great advice!!

I let my card work for me. I took it out a long time ago when I went on a cruise and I get points toward future cruises every time I use it. For that reason, I make a point to use it every month to get the benefits then I pay it off every month. So in all actuality, I get paid to use the card and I help maintain my credit score at the same time.

Putting all of your bills and regular expenses on a cash back card, those rebates really will add up.

I still sign up for a new card every couple of months to get the signup bonus too. I apply, get the card, use it once to buy a pack of cigarettes or something, pocket my hundred bucks, and the card goes in the trash never to be seen again. But the account stays open forever.

Just have to be careful.

I'm one to talk though, I just ran up a couple grand on a card. Most of it was necessary and I'm glad I had the option available to me, but once I got in the habit, I spent a little extra that I probably didn't need to.

 

[jackofspades]

Congrats! I personally pay off the CC every month, but I don't think I could even imagine not having one at all... Makes online shopping, dining out, and purchases in general so much easier. Plus the bonus points add up, especially if you sign up for a new CC every so often like some of those on here have discussed. But yea..could never go back to the "cash method".. I mean...after all.. I hate coins/change!

 

[marv]

My income is in the form of direct deposit and electronic transfer and the bank is 10 mi away. kinda hard to do without credit cards. We pay them off monthly.

 

[cbop]

Yep. having one or two CCs with zero balances are better than no credit. Both for your credit score and your ability to charge something like a hotel, rental car, etc. without tying up undue amounts of cash (excessive holds).

In theory Ramsey is OK. In practice he's an insufferable, arrogant douchebag who lives in a dream world. Ive listened to him several times but had to turn the dial. I couldnt stand the unreasonable "extremist" attitude he takes with his callers based on his "you dont need any credit cards, even if you travel. Just keep loads of cash in your account to cover the holds." and other crazy talk.


Yes, unsecured debt is bad. But to claim that all you need is cash/debit and you dont need ANY open lines of credit regardless of whether you dont carry a balance by paying it off every month is unreasonable.

But you have to realize that many of Dave Ramsey's listeners are listening to him because they have problems handling credit cards. Yes, credit can be good if handled smartly but chances are, if you do, you aren't listening to Dave Ramsey. He has to be hard line about just like Alcohol Anonymous can't be telling their followers "ehhh, a drink now and then is okay..."

 

[BehindBlueI's]

In theory Ramsey is OK. In practice he's an insufferable, arrogant douchebag who lives in a dream world. Ive listened to him several times but had to turn the dial. I couldnt stand the unreasonable "extremist" attitude he takes with his callers based on his "you dont need any credit cards, even if you travel. Just keep loads of cash in your account to cover the holds." and other crazy talk.

I'm not big on financial advise shows, but Clark Howard is decent in that genre.

Another thing for those using debit cards for travel, purchases, and the like. What happens when you dispute a charge? YOUR money is tied up until the dispute is resolved. What happens when you dispute a charge on a credit card? THEIR money is tied up during the dispute. I had a hotel in London double charge me. If it'd been on a debit card, I'd have had a lot of money sitting in limbo for two weeks.