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Monday, August 27, 2012

Credit Cards: Definitely NOT Free Spending Money


Being an adult sucks.  Pretty much a given, I know.

You know when I was 18 no one ever told me it would take me like 11 years to pay off a measly $500 credit card. They'll teach me how to sew a fucking purse in high school but they neglect to mention the giant money pit credit cards are. Thanks a lot public education!

This weekend Rusty & I made the decision to take out a bank loan, after paying one completely off no more than a week ago, in order to pay off our 8 credit cards.

Yes, 8. Don't judge.

There's no excuse for having that many other than I applied, they gave them to me, and now my closet is full of useless crap they helped purchase. In all reality we don't owe that much. You know, if you don't consider 7K a lot or whatever. Maybe it's not that big of deal since I know people that have actually had to file for bankruptcy due to owing more than 25K..now that's a lot of fucking money.

Taking out this loan wasn't something we (I) did on a whim. See, I only like spending cash, not paying it back. Hence, the credit card debt I'm in. Lame.

But the way I figure it, it's easier to pay one lump sum with one interest rate than 8 of them. I hate to admit it but my mom was definitely right when she told me on my 18th b-day that credit cards were the devil. Then again, this was said after she signed her bankruptcy forms :/

*sigh* Live & learn, right?

According to the bank the credit cards should be paid off in a few weeks and as soon as that happens I'm calling them & closing those damn accounts. With Christmas coming up in a few months there's no telling the kind of damage I could do with those cards in my hands. There's no shame in admitting I'm weak, especially when it comes to shopping. What can I say, I rack serious diciprine.

I blame Target & Charlotte Russe.

20 comments:

  1. I really wish they would add a how to use credit cards wisely class to the high school curriculum ....both my husband and I were so dumb with those little plastic things :(....now we have none

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  2. I've been there. I myself had 5 at one time. Two visas, and three store cards. I have nothing to show for it now, but a very low credit score. I applied for one recently, but was denied. That made me sad. I have been getting applications in the mail a lot lately and I really need to build the credit, but I don't know how to do that.

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  3. I so agree about the comment that they'll teach you how to sew a purse but not how to use a credit card or what the fine print really means!! Sounds like you are being smart with this decision and I commend you for it! :) Have a great week!!

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  4. We had a personal finance course at my high school but it was never required. I took it because it seemed like a good idea and I had the space in my schedule. We were always told in that class to have ONE credit or store card and buy one tiny thing, pay it off immediately, and then hide the card until the next month. That's how we were told to build good credit. I've never had a credit card to this day but I'm assuming it takes A LOT of self discipline to do it that way.

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  5. you can do it! : ) there is nothing worse than credit card debt - but there is light at the end of the tunnel!

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  6. Luckily I never got into the credit cards because my parents warned me and I just used my debit cards to pay for stuff. I'm glad I never got sucked into that hole! Until I got married. Hubs had credit cards and we have accumulated some debt too. Slowly paying them off as we go!!

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  7. Ohhhh lordy. I hear ya. At 18 I took out 2 cards. 1 I have paid off... the other I owe $3,000.. I took out a loan from my bank.. owe 2500 on taht one so I'm right up there with you. I don't like to think about it... I wonder if I will ever pay these off. Good for you taking the first steps. I need to do that!!

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  8. I have to admit that I had to learn how the American credit card system works first. It really is confusing. You can have so many different cards and I would completely lose track. I only have one German credit card and now I also one American. That's confusing enough for me. :)

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  9. Credit cards are the devil. I am so bad with my credit card. Before I got married, I did what you did, consolidated all my five cards to one and paid it off. I was also able to save money for the downpayment of our condo. But then I racked up my credit card again and am finding it so hard to pay it down. Maybe I should stop going on vacations but it's the only thing that keeps me sane. I guess I just have to budget more so I can pay off the one damn credit card I have.

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  10. I am not enjoying my overdraft right now - and I'm thinking my younger self for never taking the bank up on their offer of increased credit limits. I keep mine at $500 so I CAN'T rack up too much debt. I was nearly paid off, but then we moved and all the little things (50$ on garbage bags and cleaning product. No joke) started to add up and I am terrified to look at my bank account. I think money - or the lack thereof - is the devil!

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  11. When I first read Dave Ramsey's Financial Peace book, I had 14 credit cards in my wallet and a whopping 8k in debt (including car payment). I went CRAZY paying them off one at a time, and snowballed my last payment on the car. By the time I was paying off my car, my monthly payments were $1200! Now, I'm celebrating being DEBT FREE for over a decade- including our house!

    Good job taking the first step in getting control of your money.

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  12. I hate hate HATE those damn cards, too. Got me in so much trouble when I was younger. Now I only have 2 and I have them for emergencies only. HATE THEM. Props to you for getting them taken' care of now :)

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  13. i'm right there with you i have 9 cards and they are all at their limit but our goal this deployment is to pay them off a little at a time. i know it's hard but you can do it and be debt free. they are the devil <3

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  14. Between J and I we have two, mine and ours! We only use ours for holidays and big joint things and mine gets use for whatever I want to use it for, but has only a $1000 limit. This I know I can pay off pretty quick smart! All in all, they suck and give you a complete false sense of having some money!

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  15. I have serious debt, too, so I relate to this post oh-so-well. Boo. I'll be thinking of you!! Just think about how awesome it'll feel when it's paid off!! :)

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  16. You're absolutely right! It's something that should be taught in depth in high school. The husband and I came to that conclusion when we were first trying to buy a house!

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  17. I blame Target, Charlotte Russe and Forever 21 (back in the day). Its funny, I have a verrry similar post scheduled for this week!

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  18. Good for you that you take control over your finances! There are too many offers from stores that lure us with their credit cards and thereby take control over our money! Luckily in Germany there still aren't that many. We still pay for lots of stuff with cash and with debit cards. At the beginning of living alone I even kept a journal for my expenses - very nerdy, I know! I can tell you it totally felt weird paying for everything with a credit card when we were in the states. You totally lose the overview over the money you spent when you don't really see it or hold it in your hands!
    But this is really a post that needed to be put out there!!
    xo Anja

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  19. hopefully you haven't leased a car also...that's another trap
    xo

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  20. I don't even want to think about the debt I'm in... blah!

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