Next Lesson: Getting Rid of Credit Card Debt

Starting today, we’re going to head back to the budgeting aspect of our new savings plan.  Many people out there today have credit card debt, and don’t realize how much they’re paying in fees and interest.  If they could just get over the “hump” and get them paid off once and for all, and get used to paying it off every month in the future, they would have more cash in their pocket, along with a newfound discipline of spending less than what they make. 

Now, believe me, I have been there where I paid interest every month, mostly to my favorite department store (thanks Dillard’s).  However, I was finally able to curb my spending and get it paid off about 10 years ago.  I am proud to say that since then, I have only paid interest by accidentally overlooking my bill.  So, in the last 10 years, I’ve probably paid a total of $10 in interest, although I have also earned enough reward points for 4 nights in Las Vegas, including meals, and several random hotel stays at other places.  It’s fun for me to watch the reward credits add up and not pay any interest to the credit card company.  They might be making money from the merchandiser, but I am also receiving rewards for simply using my card, and paying it each and every month.  If I was using a debit card, this would not be any different.  It’s the same mentality, just a different way of doing it. 

So, for this weekend, start thinking about how much credit card debt you have.  Are the items you have in exchange for that really worth it?  Wouldn’t you rather be able to pay cash for everything, keeping that interest you pay to the company?  I know I sure would.  Beginning Monday, we’ll start a weeklong plan to get you ready to knock out the credit card debt and on your way to paying cash for everything!