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Want to get rid of my Visa! Help!

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    Want to get rid of my Visa! Help!

    Too make this brief.. I have had a visa card for almost 4 years now. My credit limit was 2000 dollars. I have had it at 2000 dollars and paid it all off almost 3 times now but have always racked it up again. I have recently made my limit to 1000 dollars but whenever I get it down a bit I always spend it back up to the limit. I have realised I have no self control and I am scared once I pay it down to 0 again that it is just a matter of time before I start spending on it again.

    I want to cancel my credit card all together but I am scared it will hurt my credit score, or I will need it to book trips online or other useful things. What should I do?

    #2
    Get a replacement card with a new number, and before you memorize it, give it to someone you, without question, trust (parent, spouse, old friend), and have them store it. If you MUST use it, you can explain to them why and allow them to ask you to rationalize it.

    Keep the balance at 0, and use it once a year for a celebratory dinner, which you will then promptly pay off.

    That's the only thing I can think of if you really don't have the self-control to not buy something using it, but need to keep it for incidentals.

    Comment


      #3
      Originally posted by Ambitious_Andrea View Post
      whenever I get it down a bit I always spend it back up to the limit.

      I want to cancel my credit card all together but I am scared it will hurt my credit score
      I think you should be more concerned with your spending problem than with your credit score. Besides, maxing out your card constantly is destroying your score anyway.

      Why are you spending money you don't have? Are you not earning enough to make ends meet? Or are you just spending for the sake of spending? What you really need is a budget, a plan that spells out how each dollar will get allocated each month. That would help solve the spending issue and let you keep the credit card (though honestly, a card with a $1,000 limit isn't all that useful. You should never charge more than 30% of your limit, so the most you should ever put on that card is $300. That doesn't go very far.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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        #4
        Put your card in a metal coffee can, fill it with water and put it in the freezer. This way you can't just use it whenever you want to, and when you get tempted, you have a while and think about it while waiting for the can to defrost. That may give you enough time to talk yourself out of using it.

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          #5
          I like the idea of putting the credit card in metal coffee cup.

          I think you need to get under control WHY you are spending. Are you shopping, going to out to eat, taking trips?

          Do you have "fun money' built into your budget?

          Comment


            #6
            Originally posted by Ambitious_Andrea View Post
            I have realised I have no self control and I am scared once I pay it down to 0 again that it is just a matter of time before I start spending on it again.

            What should I do?
            1) Track your spending (www.mint.com)
            2) Make a monthly budget
            3) Build up an emergency fund of 3-6 months average expenses
            4) (optional) Literally cut your CC up into pieces, so that you cannot use it

            If you do those things (in order), you will solve the CC problem.

            -----------------------

            As others have pointed out, CC debt is a symptom of the real problem. And that problem is that you are spending more than you make (due to not following a budget and not having a buffer against unexpected expenses).

            Comment


              #7
              Want to Get Rid of Visa

              I agree with Steve that you have a spending problem. Visa did not create the problem. Visa is in the money business. Until you face the problem you created, you can't really fix it. Why do you spend money? Comfort? Actual Need? Desire to Fit In with the Joneses? I would not worry about your credit score right now, and probably not for a couple of years. You need to create a budget and stick to it. Make a shopping list before you go grocery shopping and stick to it and take cash. Leave debit cards and credit cards at home. Get an extra job, if you have to, and pay off the credit card. Perhaps you should consider living a cash only lifestyle.

              Comment


                #8
                I think the tin is a good idea. Then you won't be tempted when you are out shopping. Don't forget to put it back after you use it though.

                You said that you max it out and then pay it all off. That indicates to me that you do have some self control but maybe your budget is too tight so you 'binge' on spending after months of virtually no spending. If this is the problem you can fix it by allocating some fun into your budget like Tree0164 said. I find that I am too strict when I am just decide to cut back without actually writing out a budget. If you havent written one out yet, you should probably try to make one. It will help even if it is just a basic one.

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                  #9
                  It's a matter of self control. Since you said you don't have it,you should at least try to develop your self control. It's not as easy as saying it though!

                  Comment


                    #10
                    Originally posted by jpg7n16 View Post
                    1) Track your spending (mint)
                    2) Make a monthly budget
                    3) Build up an emergency fund of 3-6 months average expenses
                    4) (optional) Literally cut your CC up into pieces, so that you cannot use it

                    If you do those things (in order), you will solve the CC problem.

                    -----------------------

                    As others have pointed out, CC debt is a symptom of the real problem. And that problem is that you are spending more than you make (due to not following a budget and not having a buffer against unexpected expenses).
                    I just wanted to say I was looking for advice on CC debt and found this forum and this particular post very useful. I now have all of my financials in Mint and am half way through my first budgeted month. Today I decided to take the rest of the budget money for shopping/groceries/etc out in cash and try to get thru to the end of the month on that. I think things are looking up!

                    Comment


                      #11
                      Originally posted by Ambitious_Andrea View Post
                      I want to cancel my credit card all together but I am scared it will hurt my credit score, or I will need it to book trips online or other useful things. What should I do?
                      If you are concerned with hurting your credit score then don't cancel your card. My suggestion would be to pay off your balance and then give the card to a trusted family member to hold on to for you to use for emergencies only. If you need to book trips online then I suggest getting a Southwest Rapids Rewards card or a Capitol One Venture card. There are other options out there but I find Southwest to have the best rewards. If you travel frequently this would be the only reason to open up a credit card that has these types of rewards, to offset your spending. Also, if you are serious about managing your spending then this would be a great way to get rewards for what you spend.

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                        #12
                        You can reserve airline tickets, etc with a debt card too. You don't need that credit card, that is a line of bull dreamed up by the cc companies.

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