After credit card debt then what?

[JoyJoy]

What did you do after you paid off your credit card debt?

What cards did you keep and why?

How long have you been debt free? (not including the mortgage unless you have paid that off too).

I will be credit card free by November, 2006. My husband paid off his credit cards in November, 2005.

I plan to keep American Express Gold Rewards Card which I PIF each month and also one other credit card. I am leaning towards keeping Capital One as they have always been here for me during the hard times and the good times. I have never once in 15 years received a call from them to solicit or to say my account was behind.

I hope to remain debt free from credit cards for the rest of my life! Our mortgage will be paid off by 2016, God willing.

[cheapbastard]

I have always been without credit card debt.
I use one VISA card. I do all my shopping with it, but I have the financial control to only spend what I can afford to pay off during the month. We also get reward points and these are a great way to get a few free presents at Christmas time.
Other than mortgages we are debt free.

Well done on setting your debt free goals.

[JoyJoy]

Thank you Cheap! Congratulations to you also for not ever having credit card debt which in itself is a miracle in today's society! Control is the key for sure.

Life is so much better without credit card debt hanging over one's head and keeping one awake at night. I had to learn the hard way but thank God I learned before retirement!

God bless!

[Snoopy2645]

I have had small amounts on my cc's at different times we just paid them off with our tax refund btw I only do 0% thats for big purchases say like a new table or bed or something.

Also I do use one cc that I pay off every month for day to day purchases & get rewards for if you do this I would pick the best rewarding card. Some reward 100 times better than another might.

[Firefly]

I pay off our credit card balance monthly. So I guess we have no debt. After all the owed debt is paid, we put the rest of the money into savings. If we don't owe on the credit card, it all goes into savings.

[jmjj215]

We use our CC for every purchase we can and get the cashback bonuses. The key is to operate with control. We've found that an effective budgeting process between spouses is a key driver in the household's financial control.

[TBH]

Originally Posted by JoyJoy

I plan to keep American Express Gold Rewards Card which I PIF each month and also one other credit card. I am leaning towards keeping Capital One as they have always been here for me during the hard times and the good times. I have never once in 15 years received a call from them to solicit or to say my account was behind.

JoyJoy,
Congratulations! Another good reason to keep that Capital One card--if you've had it for 15 years, it's a great advantage on your credit report. The longer you have an account (and the longer you have an account in good standing) the better your credit score is.

[Ima saver]

I paid off all my credit card debt over a year ago and have not kept a balance since. I pay it off every month. I use a state farm credit card because it gives me $$ towards my house insurance. My husband used Amer. express for him building purchases at Home Depot cause he gets 1% back each year.
I am mortgage free, but my biggest payment is on my car, plus I owe on a piece of land that we financed thru the bank.
The banks are financing land now. Land around here cost as much as a house did a few years ago.

[sweeps]

Originally Posted by Ima saver

My husband used Amer. express for him building purchases at Home Depot cause he gets 1% back each year.

Look into the Chase Home Improvement Rewards credit card. 3 points for each $1 spent on home improvement supplies.

But wait.. there's more! Get a free laser level with your first purchase! And of course, my favorite, you're entered into a sweepstakes for a "dream home".

[JoyJoy]

Thank you Claire for your kind comments. I too am pleased with the 15 year history with Capital One.

I gleaned from the responses that the best way to control one's debt is to (1) Pay off your credit card bill each month. (2) Pay yourself by putting the money left over from paying your credit card bills into savings (smart idea Firefly and this really requires discipline lol). (3) To use the reward points to purchase Christmas presents is an EXCELLENT idea! I haven't redeemed any of our points since we obtained the card so watch out Christmas 2006 lol....this will be fun and no charging gifts or spending extra cash as the purchases will be paid for in advance! ( Thanks Cheap!!)

I see there are great benefits from being out of debt! My husband says it feels like a 1,000 pound weight is off his shoulders! We laugh more, go out more and enjoy the simple pleasures of life again! I have to agree with Suze Orman when she said your sex life will be even better!

Oprah is spotlighting her show today, 2/17/06, on getting out of debt. Should be interesting.

God bless you all and thanks for sharing your financial life with me.

[Keen]

Congrats on your plan to get out from under the CC debt JoyJoy! It really is a wonderful thing.

I just wanted to offer another slat on the "What CC's to keep?" question...how about none? Are you planning on going back into CC debt?

I know quite a few folks on this site use cards that they pay off every month and enjoy the rewards they get from that process. For me however it has been more rewarding to know I will never have CC debit, no matter what happens or what type of disaster strikes.

Build a cash reserve (emergency fund) and at that point why would you need to have a CC in the house? Or wallet? Or purse?

If you have been deep in CC debt already it seems like you would be better off without the temptation...

Kind of like a addict keeping a bottle around "just in case"...

Plus I really dont like the way CC companies pray on the weak...the ones who can least afford it. So I don't do business with them.

Just another way to look at it,

Whatever you decide, Congrats again on getting out from under!

[JoyJoy]

Thanks Keen for your input and a very good point too!

We weren't as fortunate as some people are who can pay off credit card debt and have an emergency fund on hand at the same time. Hubby and I just started accounts with EmigrantDirect and HSBC this year. We are able to bank hubby's check now after the mortgage payment. Something we could never do before!!

I do like the rewards on our Amex card and I don't want to lose my 15 year history with Capital One.

"Kind of like a drunk keeping a bottle around "just in case". I understand your point, but I look at credit card debt like this. My husband smokes but I quit 2 years ago on December 23, 2003. There are cigarettes around but I have been there and done that. I have exercised control and I don't want to repeat my past. I am in control cause I choose to be and because my prayers are what got me this far.

[Ima saver]

That is a good point Keen. I keep one card active because I do not carry my check book nor a lot of cash. I try to use it only for emergency or if I am ordereing something out of a catalog. (My check book is the big 3 on a page type checkbook so it stays at home)
I have always thought if I had extra money in the checkbook, I would spend it, so I never keep any extra in there.
I alot a certain amount of money to my charge card every week, and what I don't spend, Iput in my savings.
My husband goes to home depot 2 or 3 times a day. He doesn't want to have to write checks 2 or 3 times a day. Plus I get to keep that money in my interest bearing account until the end of the month. So I am making 3.57 interest on that money (which is usually $1000's of dollars) plus not having to pay for checks. Plus I get 1% back once a year, so I am actually making money on my charge cards.

[Keen]

I agree with you both JoyJoy and Ima, if you have the self control to always to pay off CC's each month in full then there is no harm in having them...

I am just giving another idea about how some folks might want to insure they never get into CC debt again...don't have them and don't need them!

I just prefer to live a life without CC's...my good old debit card that is linked to my checking and backed up with my savings is all we will ever need. The "Nickels" and "Dimes" (really Pennies) that I could "make" using a CC holds no interest for me (pardon the pun). I am focused on other areas to build my wealth... Nothing wrong with it for you, but its just not for me.

To each their own and now matter how you slice it we are all doing much better then most and should be very proud.

[Ima saver]

I agree with you Keen, but I have never had a credit card problem in my life. Even when i carried a balance (which was stupid) I had the money to pay it off. But I always get the 0% credit card transfer cards, so I never paid interest.

My husband charges all of his building materials to his card for himself and his customers. Right now I will get back over $450 back this summer. By this august, that could well be over $800 that I will get in my pocket. I think that is a good piece of change!!
But I can understand your point.

I think it helps your credit score to have some credit cards open. I do not have a debit card because that might cause a problem for me. I don't keep extra money in my checking.

[Keen]

I see your point as well Ima, and I don't disagree that it sounds like it is working very well for you and your DH.

Just putting out another point of view on the site,

I will never worry about what card has the best 0% deal, the best cashback, or having a CC that I use just to prop up my credit score. I just don't concern myself with CC's...

Kinda like a vegitarian, its not for me but I don't try to convince them to have a hamburger with me...Live and let live.

It's working for us,

[Keen]

On a side note Ima, I am not sure what you mean by "I do not have a debit card because that might cause a problem for me."

Can you explain?

[Ima saver]

Well, I started budgeting using the old fashioned envelope system many years ago. When I pay my bills, I put the amount of the money I owe in my checking account to cover the checks. I never put in anything extra except the money I accumulate to pay the once a year house insurance and house property tax.
So if I used a debit card or ATM, there would not be any money in there. I always keep a little extra cash in my misc. envelope and of course, in an emergency, I have several money market and savings accounts locally.
I tried putting my husband check in the checking acct. and just tracking everything on paper, but that didn't work for me. I had to go back to the old fashioned "money in each envelope" system.
Do you know what I am talking about?

[JoyJoy]

Keen your point of view is well taken. Like you said, "We are all doing well better than most and should be very proud". My brother-in-law agrees with you 100% as he despises credit cards. He believes in using cash only and no credit. My sister,on the other hand believes in using credit cards and you can imagine the chaos when finances are brought up in their home!!

Come November, 2006 my plan is to only use AMEX and continue receiving the double reward points. Capital One will have its home in our home safe for a long time to come and its longevity can continue to build. I will not close the Cap1 account as my credit history would revert to zero in that Amex carries no revolving monthly balance.

Congratulations to you also in being able to use only a debit card and no credit cards at all.

[Snoopy2645]

Another idea is if you do use one for day to day purchase you may want to have access to pay that online so you can pay it as often as you like instead of at the end of the month getting the bill & being overwhelmed