What do you do once you're out of credit card debt?

[Kedi]

ANY advice on how to keep from getting back into credit card debt other than:
Get rid of all your credit cards even though they are zero balance and replace with a debit card.

Am I wrong to keep just one for emergencies?
Or only use one card what I can pay in full each month?

I'm saving money by using one credit card (that has no annual fee & is a reward card)
for my telephone, cell phone, internet service, electric, gas & satellite tv bills auto debit
to each month.
First those bills are paid on time - so never any late or addiional charges
Second, I save the cost of not writing checks, envelopes & postage

OR am I just fooling myself & it's just a matter of time before I'll be back in credit card hell?

[PrincessPerky]

that totally depends on you...

We still have in the wallet all our old cards, we just don't go into debt.

Many folk on this forum use CCs for purchases then pay in full each month, if you can join them go for it, if on the other hand you find one month you can't quite pay, I would stop the habit.

[simpleyme]

I keep my cards but not for emergency, you need to save money for that

[Ima saver]

I just pay off my cards each month and never go back into debt again. I use the cards cause they pay me back 3% of the cost of the purchases. I only use one card. I just put all others away in a safe.

[Aleta]

I use mine for the cash free rewards and pay it off monthly. One way to reduce your dependency on credit cards is to start allocating money to the expenses that were getting you into debt.

I have sub accounts for medical, vacation, Xmas, property taxes, homeowners's insurance, car insurance, entertainment, house maintenance, toiletries, beverages, cat food, etc. I have not listed them all but was trying to give you an idea.

Also, you might have a goal for replacing your car. You could set up a savings account as a sub account and just add in what a car payment might look like for you.

I also have what I call as an unallocated fund which is a catch all or a savings depending on how much is left over from this account. I sometimes transfer left over money from different accounts into this one. Some people call this goof-off money, but to me, it represents misc. expenses that come up or one that doesn't have a category.

[cptacek]

It is a mindset. It is not like the credit card jumps out of your wallet and goes into the store by itself to pick out those expensive shoes. It just takes diligence and a promise to yourself that you are not going to pay interest to the CC Company again...so if you can't stick to that, get rid of the credit card. As you mature financially, it will be easier to make sure that happens.

Credit cards can be a tool that makes you money. They can be convenient and help you save money, like you are using them for above. But, like fire, if you can't control it, it will burn you.

[boefixepa]

I have a system that transers the amount of each purchase over to a CC category for payment. So I know when I would not have the money to pay the bill. I've also seen other write each CC transaction in their checking acout register, as if it were a debt card purchase, so that they know the money will be in the account to pay the bill. As long as you have the self-control there is nothing woring with using them. It is a mind set, and a matter of self control.

When I switched over I made myself go 6 months without using them to make sure I could live within my means. I've been using them for years now, paying off the balance each month, and collecting the rewards , without a problem.

As all others have said....if you can't do it....get rid of them.

[Aleta]

I agree with the above poster. If you have the self control over spending, the credit cards are rewarding.

[InDebtInDC]

Did anyone mention safety with CC? I make all purchases with CC if possible, especially online. If I have a problem, CC company will do a charge back with no problems.

Debit cards will only do a charge back for unauthorized transactions.

Overspending is another story.l

[LivingAlmostLarge]

Me I had so much trouble with Amazon and I'm glad I used a CC.

[threebeansalad]

I agree with PrincessPerky-- it totally depends on the individual. I've always paid my CC in full every month. I used to pay for things as a mix with either credit or debit, but now I've moved exclusively to CC. There's a more protection, one less account for my to balance, and I get 1% cash back on purchases. 1% cash back doesn't sounds like much, but when you put everything from groceries, gas, and gifts, it does-- even for a carful spender like myself. I've already earned over $125.

[jIM_Ohio]

Originally Posted by Kedi

ANY advice on how to keep from getting back into credit card debt other than:
Get rid of all your credit cards even though they are zero balance and replace with a debit card.

Am I wrong to keep just one for emergencies?
Or only use one card what I can pay in full each month?

I'm saving money by using one credit card (that has no annual fee & is a reward card)
for my telephone, cell phone, internet service, electric, gas & satellite tv bills auto debit
to each month.
First those bills are paid on time - so never any late or addiional charges
Second, I save the cost of not writing checks, envelopes & postage

OR am I just fooling myself & it's just a matter of time before I'll be back in credit card hell?

withdraw cash and pay cash for most typical purchases. Groceries, gas etc.. (what do you do now to pay for these?).

keep the CC. Not in wallet though. Put them in a closet, cupboard or freezer.

Good job getting debt free. Feel good?

[bishop]

my wife and I are keeping our accounts open as of now (even with no balance), but we do not have the cards. As for emergencies, we have cash in an easy access MMA earning about 5%, so we don't go into debt when something unexpected comes up (if an emergency is so big you have to put it on a card, that means you won't be able to pay it off at the end of the month, which means you're right back in debt). We'll have our last card paid off here very shortly (other than that, we only have a mortgage as our car is paid off), and then our next goal is to save at least 6 months salary, in case we get laid off, or disabled. After that, we'll split the extra money we have between investing and paying down the house.

[Frugalicious]

Originally Posted by Kedi

ANY advice on how to keep from getting back into credit card debt other than:
Get rid of all your credit cards even though they are zero balance and replace with a debit card.

Am I wrong to keep just one for emergencies?
Or only use one card what I can pay in full each month?

I'm saving money by using one credit card (that has no annual fee & is a reward card)
for my telephone, cell phone, internet service, electric, gas & satellite tv bills auto debit
to each month.
First those bills are paid on time - so never any late or addiional charges
Second, I save the cost of not writing checks, envelopes & postage

OR am I just fooling myself & it's just a matter of time before I'll be back in credit card hell?

Just be careful and do what is in your comfort zone.
Everyone is different.
We will be out of total CC debt in March 08.
I am not to sure where we will go from there, regarding credit cards.
Since I am the one who does the bill paying/accounting I grew tired of the whole rate chasing game (0%)

I see us saving money, and upping 401K contributions.
Opening Roths finally!
Maybe use 1 reward card for regular monthly bills will be OK.

Then again, maybe not...