Why do folks run up their CC?

[Permanent Temp]

My family didn't have a lot and it was a miracle I was able to go to college at all. So my problem started in college, I used the cards mostly to eat out/groceries and get coffee.

When I was making good money the old debt went away finally but now I'm at sort of a crossroads where I'm not making as much.

I also just bought a house and it needs stuff. I'm not sure what to do to stop these new small balances from creeping up anymore.

Every penny has to go elsewhere I don't have enough to go around yet there are the balances. That last two months I used it to pay some once a year bills that I didn't have the cash to cover. I feel kind of just helpless.

But I had all my cards maxed out before now I am looking at 1,500 on one card with a total credit availability of about 15K I think. I'm not sure what the full amount of my avaliable credit power is over all my cards I don't care to track it either since I no longer think of the cards as "my how much can I spend balance."

But it is stressing me out that I'll be in a store and think oh well I need this for the house and then I pay it thinking I'll figure it out later. It's true I need it for the house but I need other things to like to figure out the car situation an emergency fund etc. The last house things I bought were lining for the shelves so I could put all the food in there and have an easier time cleaning everything. And some organizers (at the dollar store and on clearance at target) for my office so that I could finally get everything up off the floor and file pertinent paperwork.

Now that I spent a few bucks though on organizers etc I needed for the house it will hopefully calm down a bit. I mean were talking like max $300, and I already paid these expenses off but it is just stressing me out big time. *sigh*

[sv2007]

Permanent Temp --
Thanks for the post.

Have you tried keeping a weekly budget?
It can help you feel in control and hence reduce stress.

[sv2007]

My credit card debt was mostly accumulated during college and shortly after. Much of my earnings for my part time job during school went to my rent and there was little left over for everything else. I certainly had fun during school but the debt filled hole that I created for myself was certainly not worth it. I had to live at home for a couple years after college and worked a lot of OT to finally claw my way out. You live, you learn.

What caused the debt to go so high that you must work OT to pay it off?
Is it just paying the $10 minimum and not noticing it piling up?

[Nutria]

When I was making good money the old debt went away finally

Every penny has to go elsewhere I don't have enough to go around yet there are the balances. That last two months I used it to pay some once a year bills that I didn't have the cash to cover. I feel kind of just helpless.

If you aren't wasting money then there's no need to stress...

But I had all my cards maxed out before now I am looking at 1,500 on one card with a total credit availability of about 15K I think. I'm not sure what the full amount of my avaliable credit power is over all my cards I don't care to track it either since I no longer think of the cards as "my how much can I spend balance."

Does that mean that your CC debt is down 90+%?

And some organizers (at the dollar store and on clearance at target) for my office so that I could finally get everything up off the floor and file pertinent paperwork.

Now that I spent a few bucks though on organizers etc I needed for the house it will hopefully calm down a bit. I mean were talking like max $300, and I already paid these expenses off but it is just stressing me out big time. *sigh*

Hopefully your income will start increasing soon!

[sv2007]

In 2010, I accumulated about 4k of credit card debt in just a few months,
... The debt was from a fun long-weekend in Vegas and helping an unemployed family member get back on their feet.

So it sounds like it was a deliberate CC spending? I.e. access to cash when there's no other source? Kind of like my example of medical treatment and food/housing.

[Permanent Temp]

Permanent Temp --
Thanks for the post.

Have you tried keeping a weekly budget?
It can help you feel in control and hence reduce stress.

I used to do these with ease when I made more money, now a days I struggle again because this whole house thing is new to me.

I used to have a part-time job but I quit after 3 years because it wasn't bringing in as much as was causing me to have to eat out a lot more than I'd like.

If you aren't wasting money then there's no need to stress...



Does that mean that your CC debt is down 90+%?



Hopefully your income will start increasing soon!

Well I feel like I am wasting it though because I want to be saving more. But its true I was paying bills. It feels so strange to not have a cushion anymore. When I made more money and had the part time job I was able to live off of so little of my cash and put away so much which let me live off the money for 3 months until I found this job.

It's true I was all maxed out. I had 100% Utilization pretty much, but at my first gig I had an epiphany and paid off one maxed out card with a large interest rate, when I was laid off from the gig I was grateful I had taken the time to do that because I was paying $200 or so just to keep up with it.

Then I had the new gig and because of the way the other one ended I was cautious at first but eventually I had enough savings were I felt comfortable paying off the last of the card debt.

Now for debt I have $1500 revolving also from house repairs/eating out while we were half living in two different places.

I also forgot one card that is essentially a loan so I don't count it as a credit card since it is zero percent. And it is truly zero percent (no zero percent until stuff), unless I activate the credit card and charge stuff which I have no reason to. It was the financing they offered me so I could get a new furnace and sewer line on the house. I'm trying to focus on paying off the $1500 whenever I get extra money to put it there while simultaneously re-building a emergency fund.

I guess its easy to forget how hard it was to get there when its been so long all I can remember now is living on the money I saved for months while still working part time.

I'm trying to be patient with myself owning a house is different and we bought one short sale, mostly because house prices are crazy here and it made more sense to buy one that needed work have a lower mortgage than to get locked into a high mortgage on a "pretty house" when it's really likely the housing market is going to crash at some point. But I get really anxious about having a revolving balance.

I've been writing about it on my blog here on the site too.

[sv2007]

I used to do these with ease when I made more money, now a days I struggle again because this whole house thing is new to me.

Now that you own your home (well, firstly, congrats), you should budget even more in order to build up an emergency fund (which should only happen after CC debt). Based on my experience, a budget is more useful for situations where there isn't enough cash than when there is too much cash.

But then, I've read some strange ways of budgeting on this forum. Best to grab a popular book on it and do it right.

[Nutria]

Well I feel like I am wasting it though because I want to be saving more.

I acknowledge your feelings, but must tell you to stop feeling and start thinking.

Is what you're buying truly important? Or are these purchases wants that you are deluding yourself into believing that they're needs?

[pflyers85]

What caused the debt to go so high that you must work OT to pay it off?
Is it just paying the $10 minimum and not noticing it piling up?

Yeah I largely made minimum payments in college and for the 1st year after college. I was a dumb college kid. For as smart as I thought I was I didn't really think about the math much and realize how much of my money was spent on interest alone. It didn't help that I drank too much back then. That all changed when a friend of mine had gotten a DUI. I realized that easily could have been me so it was definitely a wake up call.

[katiemaybe]

I would say mine was:

1/3 unnecessary travel/trips
1/3 unnecessary shopping/dinners out
1/3 essentials, moving expenses and dental work

My balance slowly crept up during college and the years after it took me to find a full time professional job. In college I had the mentality I could pay it off once I got a job right after graduation. My field (at the time) was doing well and I had a good part time job where I was getting real life experience so I didn't anticipate any trouble.

I was living with a partner at the time who had a poor money management mentality which didn't help things either. I tried to keep up with him and eventually developed some bad habits (lots of dinners out and a trip to Asia). Eventually the relationship went bad and it took me a year or so to extract myself from that relationship financially, physically and mentally. I was shopping a lot during that time as a pick me up. It was never any ostentatious but little stuff that added up. Even thought I'll be paying for it for years to come I don't really regret the travel...I now have health issues that make it nearly impossibly so I'm glad I got to take some trips while I had the chance.

After that ended I didn't count on graduating at the front end of the recession and working minimum wage for little over a year while I looked for a professional job. During that period it was mostly used for essentials and dental work. I was also only able to pay the minimums.

My first job was low pay in a high cost area...I guess I could of waited for a better offer but I was tired of treading water. I had to pay moving expenses myself which is pretty standard for entry level in my field. I didn't really have the means to pay more than the minimum until I was able to get a better job. Anyway I finally found something with a higher salary and was able to start making a bigger dent in it.

It really a bummer to write all this out but I find it helpful to read people "debt stories" as what not to do.

[MichaelWelterWSM]

A great mistake of spending things when I really don't have enough to pay for it! Temptation and no control

[Jovanny]

According to me, most of the people would consider the third option.

[Outdoorsygal]

According to me, most of the people would consider the third option.

We had medical bills to pay and never thought there was any alternative. We were very naive.
When told we couldn't make payments and had to pay such and such amount, we just did.
Using CC's unfortunately. We still owe $15,000 but are starting to seriously pay it back at $500 per month.

[GoodSteward]

24k$ Credit card debt over a 5 year period. For me, it was due to being too comfortable making payments. Credit cards allowed me to buy what I couldn't afford, and I love me a sale! I mean, sure I don't need this electronic device, but when it's 50% off look at all that money I will have wasted buying it later for full price! <---Stupid

It was a mixture of needs/wants(mostly that), and then being ok just paying the minimum. I was one of those people whole felt as long as I was paying what I owed(monthly bills/mim payments) I was being responsible, and I was awesome with money!

I still fight that complacency at times when I consider buying 0% items on a fixed payoff, but in the end, I am still eating my cash flow doing that so I avoid it also.

[katiemaybe]

24k$ Credit card debt over a 5 year period. For me, it was due to being too comfortable making payments. Credit cards allowed me to buy what I couldn't afford, and I love me a sale! I mean, sure I don't need this electronic device, but when it's 50% off look at all that money I will have wasted buying it later for full price! <---Stupid

It was a mixture of needs/wants(mostly that), and then being ok just paying the minimum. I was one of those people whole felt as long as I was paying what I owed(monthly bills/mim payments) I was being responsible, and I was awesome with money!

I still fight that complacency at times when I consider buying 0% items on a fixed payoff, but in the end, I am still eating my cash flow doing that so I avoid it also.

Oh man, all of this sounds so familiar. Especially ~ "I can pay all my bills so I'm responsible with money!" Also buying things when they are steeply discounted to "avoid paying more later". Ha!