Everyone has a credit card story. You know, the one about how utterly stupid the card company was. Or how unfair they were, or whatever. But in my opinion, the more important credit card story is your own. That’s right.
The story you tell yourself about why you have credit card debt and what you have to do about it.
If your story is all about becoming an expert in the different credit card offers, I have news for you. You’re not focusing on the right story.
Sure you have to reduce your credit card interest expense, but your focus needs to be somewhere else. You need to think about how to spend less money and get that freakin’ debt paid off.
I don’t even care if you spend a little more on the interest as long as you have a plan to get out of debt quickly. Ultimately, I want the card you have to be irrelevant. That’s the story I want for you. Maybe you’ll have a card great card that gives miles and points…terrific. But you won’t care about the interest they charge because you won’t be paying any.
Forget about your credit card story. Tell me your story and what you’re doing about it. Are you spending too much time looking for a better rate for your debt? Or are you working like a crazy nut to pay it off? Are you committed to improving your credit score by getting it together once and for all?
That’s the story I want you to have.
If you have credit card debt, your approach can be as simple as this:
1. Cut your spending drastically. (Yes…I know that includes getting the lowest rate debt you can.)
2. Put all the cash you possibly can towards your debt and pay it all off.
3. Never get into debt again – no matter what.
I understand that sometimes stuff happens that is beyond our control. That can lead to a financial catastrophe. And if so, debt, (like other four-letter words) happens.
But at the end of the day, you’re going to have to bail yourself out. Nobody is going to do it for you. That being the case, why not just make sure you never get into the debt pit? Or focus all your energy on getting the hell out of it?
If you do have debt, be really honest and tell me why. Was it because you overspent? Was it because you didn’t put enough aside for a rainy day? Was it because you didn’t have enough health insurance?
I’m not asking you these questions to be tough on you. I’m asking you these questions so you’ll be hard on yourself. And I want you to do that so you’ll take the right steps to ensure you’ll never be in this spot again.
What is your credit card story?
What are you going to do to change it?
When?
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{ 5 comments… read them below or add one }
I couldn’t agree more with you here. If someone in debt is spending their time worrying about which credit card has the best rates, they are really wasting their time. Use that time to go get a second job. Earn more money and pay down that debt faster and faster.
I just love this: the fact that you point to personal responsibility for debt.
And yes, surprises happen that catch us off guard, but if you don’t have an emergency fund and are forced to use credit, then you are responsible for your own lack of planning. Ouch! I feel the tough love coming on. (I have 0 debt for now, although I’ve dabbled in credit cards in the past).
Simple In France…
It’s great that you are out from under the credit card debt. How did you do it?
Please tell me your done dabbling????!!!!!
I agree with you here Neal. People need to be harder on themselves to avoid getting into sticky situations in the first place. Credit is like fire, it’s very useful it cooks, makes s’mores, gives light and warmth. When you stop paying attention to it though or are careless that’s when it can burn you or better yet burn everything you’ve worked towards to the ground. Credit can be a big help in getting you to where you want to be financially as well so for the responsible users of it out there you can’t be too hard on it. They were presented with a tool and had the capacity to use it to their own advantage. Like I said though I agree with you in that people need to be much harder on themselves.
I love your analogy w/debt and fire here Nunzio. Very thoughtful…now please pass the s’mores