We Finally Did It!

[jwthornhill]

Yesterday evening I took a look at our budget over the last six months and couldn't help but notice that our American Express credit card hasn't decreased at all! It has actually increased! It could be readily seen that in almost every area we'd either reduced our debt or got current on our bills. But, during the same time our credit debt has increased!?

I was never a proponent of cutting up your credit cards because, I always felt that if you are a responsible person you would simply control yourself. I'm ashamed to admit it but, unfortunately I've proven that over the last few months that I'm not as responsible as I thought I was.

So, before leaving for work this morning I sat down with my wife (who had been wanting to do this for a long time), and cut up our two credit cards...American Express and Best Buy.

"A good riddance of bad rubbish!"
Shakespeare's Troilus and Cressida, 1609:

NTBDF

[disneysteve]

In addition to cutting up the cards, I'd suggest pulling out the statements for the past 6 months and sitting down with your wife to review WHY your debt increased. Where did the money get spent? What areas of spending do you need to focus on correcting?

Even though you've cut up the cards, you can still overspend with cash if you buy things you don't really need and can't really afford. You may not be able to go into debt when using cash only, but you can overspend one place and come up short someplace else.

[Ima saver]

Good for you. While I don't actually cut up my credit cards, I do put them in a locked box and do not use them. If my husband charges his building materials, I pay it off the next month.

[Broken Arrow]

Hey congrats!

[mekish]

although i wouldn't propose cutting them all (you never know when you might need them), congratulations to you!

[Harrison]

Congratulation, at least you take some action.
I think you know that the story has not stopped yet and you still have to take some good cares over your personal finance.

[jwthornhill]

Originally Posted by disneysteve

In addition to cutting up the cards, I'd suggest pulling out the statements for the past 6 months and sitting down with your wife to review WHY your debt increased. Where did the money get spent? What areas of spending do you need to focus on correcting?

Even though you've cut up the cards, you can still overspend with cash if you buy things you don't really need and can't really afford. You may not be able to go into debt when using cash only, but you can overspend one place and come up short someplace else.

Thank you for the advice. I'll talk to her about doing just that.

[myself]

I'd have to say that cutting up the cards must have some more emotional attachment to it than anything else. After all, a quick call to the credit card company can retrieve a new one in a matter of 5-7 business days.

And I'm not saying that to be a smart a**. Most of our cards are in a brown paper bag, in a folder, in our file cabinet, just in case we need them for some reason.

[disneysteve]

Originally Posted by myself

I'd have to say that cutting up the cards must have some more emotional attachment to it than anything else.

I agree. I know my CC number. I don't physically need the card to go on an online shopping spree.

[boefixepa]

When I was in a similar situation I did not allow myself to use the cards for six months. I locked them away. Once I learned to live within the budget I had established and was 100% confident in that, then I allowed myself to use the CCs. I pay them in full everymonth, and that is possible because I use them for budgeted expenses only. If the money isn't there to be spent the CC is not used. It's the mind set of using it like a bank card, but you get the rewards.