Tuesday, July 21, 2009

Truth about Money...where it goes, and why it's a waste..

So I wanted to post a blog about money, because I wanted to let everyone know first hand...how bad credit cards will drain you.

I remember the first time I got a credit card..I lived in Lake Havasu and I had just turned 18 and my parents hid the card from me because they didn't want me to have a credit card, but then they ended up giving it to me. It was my first card, Capital One, with a $300 credit limit.
Well that was 6 years ago...and now I personally in my name have 10 credit cards. (this does not include the cards Matt has under his name)

Yes at times credit cards can be the best thing ever, until you realize you are $xx,xxx in debt and your interest rate is 29.9% and you are paying for things that you bought 6 years ago! Since I got that Capital One card, it's been paid off ONE time.
I encourage anyone with ANY amount of credit card debt to 1. stop using it, 2. call your credit card company and work out a payment plan to lower your interest rate if it is high 3. cut up the card 4. NEVER apply for another card again.
Yes, I do believe you should keep 1 or 2 cards for emergencies...like your car breaks down and it will be $3,000 to fix or you have a medial emergency.
I have learned a lot since I was put on disability pay and had to manage to pay our house, cars, insurance, groceries, household bills, and then the dreaded CREDIT CARD PAYMENTS. I was never stressed more in my life. Paying bills made me cry, I didn't know what to do. I would receive at least 1 call a day for collections on our credit cards!
We used to pay around $1,000 in credit card bills, it makes me SICK. I don't exactly know what we pay now since I called all the companies and had them lower the rate, but I know it is at least $200 less. I have called every company and worked out a plan to pay off the credit card with a lower interest rate. I had cards that had a 29.9% interest rate dropped to a 6% interest rate. I will have all our credit cards paid off in 5 years. Yeah 5 years is 5 years, kind of a long time.. but in 5 years I know that I will be debt free from credit cards, and in 5 years (if we don't buy a new car by then) will have no car payment...This is something to really look forward to.

The reason why I write this is because I know it is hard, we struggle everyday with money, we ALL do. You have to think before you buy, do you NEED it, or do you WANT it? Are you paying cash or are you using your credit card so that $100 piece of furniture will turn into a $250 piece of furniture...
Don't waste your hard earned money on interest...

If you have any questions about how I did this ask me, I want to help! You can't give in to them saying NO. You will always find that person that says YES, I will help you. I had to call a few companies 3-4 times until someone would finally help!

1 comment:

  1. Life can be hard...we learn by our mistakes... Do you need it or just want it? That's so difficult for young people to realize that they really don't need the "stuff"...your life will be so much easier if you keep it simple.