Staying Motivated With CC Debt Payoff

[CM5878]

I'm not here to talk about how I got into a mountain of credit card debt, but it's been building up for the last 15 years. I'm in a position where I can pay off all of this debt by Dec 2016. While I am motivated to pay it off, I am worried about losing that momentum and buying something that would stunt my debt snowball. Are there any tips or suggestions to stay focused? I'm already falling into the "once I pay off my cc debt, I want a new car" trap.

 

[Ponyracer1]

Start but cutting up any "excess cards" and close the accounts once you pay them off. Keep 2-3 lower interest rewards cards and shit-can the rest. That will prevent you from deciding to go buy a tv on that card you just got paid off.

Married? GF? If so tell them not to let you get anything until you pay the stuff off. I know with me, if I'm on the fence and leaning towards buying something I don't need or that isn't smart it doesn't take much of a smack in the face to make me realize what I'm about to do.

Another helpful thing is to focus on something you really want, GT500, house, RV, whatever. Put that in one hand and keep it with you, then when you go to buy something stupid compare it to what you "really want" and see how it measures up. All comes down to willpower for us car addicts!

 

[CM5878]

Thanks for the advice! I'm married and the wife is so against my cc debt, it's ridiculous but it makes for a wake up call. We don't have kids yet, but they are in the plans. I haven't used the cards in months so that was pretty much step one.

 

[!!!PainTrain!!!]

Priorities buddy!

Get rid of the card(s) with the highest interest first and then close them for good. Sit down with your wife and map out where you want to be in five, ten, twenty, etc years and make that your goal. Becoming a parent requires a sturdy foundation and nothing exacerbates relational problems more than money or children, keep that in mind.

The wife and I have two joint cards which we use to pay our bills and monthly expenses. At the end of each month we pay them off (or a very good portion) and stockpile the cash back / rewards.

 

[CM5878]

I know its not an excuse, but over the course of 3 years, I've been laid off twice. Five years ago I was diagnosed with a form of cancer, so I have to head to doctor appts on the regular. That plus extended amounts of time, just add up and I reach for the card.

 

[!!!PainTrain!!!]

I know its not an excuse, but over the course of 3 years, I've been laid off twice. Five years ago I was diagnosed with a form of cancer, so I have to head to doctor appts on the regular. That plus extended amounts of time, just add up and I reach for the card.

I'm not trying to flame or down you for your situation at all so if I came across that way I apologize as that was not my intention. Things happen in life and you have to do what you can when you can. No fault in that.

The fact that you recognize this is an issue that you need to address is the most important thing right now, not how you got in debt in the first place. I'd be asset rich and cash poor if it weren't for my wife being there to keep me in check. She has taught me the virtue of patience when it comes to spending and purchases.

I'm expecting my first child in May so that has put a lot of things in perspective. My goal isn't short term happiness for my wife and I, it's long term planning for our family. When you look at it in that light, that new car, tv or other luxury item just isn't as important.

I'm not saying sacrifice your hobbies, passions or occasional guilty pleasure but understand where they fit into the grand scheme of things!

 

[Ponyracer1]

Debt sucks but sometimes its better than the alternative. Just stay focused and you'll get there. Like Paintrain said above, sit down as a couple and decide the future then use each other as your "financial conscience", even if it stings a bit when she says your being an idiot, it's for your own good. Same goes for her when she wants something shiny!

 

[Bdubbs]

You can also have your CC companies deny any more transactions on the cards. Basically it would feel like a auto loan. This way you won't get into temptation into charging more stuff on the cards.

 

[CM5878]

I didn't take it wrong:beer:

I'm not trying to flame or down you for your situation at all so if I came across that way I apologize as that was not my intention. Things happen in life and you have to do what you can when you can. No fault in that.

The fact that you recognize this is an issue that you need to address is the most important thing right now, not how you got in debt in the first place. I'd be asset rich and cash poor if it weren't for my wife being there to keep me in check. She has taught me the virtue of patience when it comes to spending and purchases.

I'm expecting my first child in May so that has put a lot of things in perspective. My goal isn't short term happiness for my wife and I, it's long term planning for our family. When you look at it in that light, that new car, tv or other luxury item just isn't as important.

I'm not saying sacrifice your hobbies, passions or occasional guilty pleasure but understand where they fit into the grand scheme of things!

 

[jmsa540]

What's your credit limit on the card? Consider lowering it so you don't get in a bind again. Remember, it's all about discipline.

 

[CM5878]

I think my limits are $22k, $7k, $20k and $6k. I really dont want my limits to decrease because my debt ratio will go thru the roof.

What's your credit limit on the card? Consider lowering it so you don't get in a bind again. Remember, it's all about discipline.

 

[FIVEHOE]

I personally never used CC's for the longest time. The way I saw it if I'm going to be spending money it might as well be coming straight out of my account. I did pick one CC up but I only use it when I'm filling up the cars and emergencies.

And yes I know there are benefits to using CC's, but if you are addicted to using them and it's becoming detrimental to your life then you may want to consider cutting them up.

 

[nudarkshadowl]

Automate everything! I auto transfer savings, 401k, Roth Ira, credit card, and home equity payments directly out of my paycheck biweekly. This way if you don't see it, you won't be tempted to spend it. Also, with credit cards I try to pay it (only have one) off completely every month. I used to put everything on my cc, monthly bills, expenses, gas, etc. for the points, but swiping plastic all the time was just too easy so I went back to paying cash for everything. Doing so caused me to better watch my accounts and plan accordingly. If I don't have the cash in my account for something, then I don't really need it right then and there anyway. If I really want something, I save until I have the money to pay cash for it. Impulse buys were/are my biggest issue, as well as eating out for dinner too much. Trying to cut back on this as well, but with Xmas coming up, it's been difficult to not just slap down the cc for gifts, etc. Good luck and stick to your guns man, and you'll get there. Making the effort to paying off your debt your top priority is the first step, and the hardest part is sticking to it, but automating things makes it easier for sure.

Also, I use an app called Check, it combines all of your accounts, cc, saving, investment, etc into one easy to use app. I also use Readyforzero, which is a debt payoff planning app. It combines all of your cc accounts, and prioritizes payments for the highest interest card, and then gives you a plan to pay it off in the fastest manner possible. You can even increase your payments on stuff to get a visual of how it would change the time line of your debt payoff plan! Cheers!

 

[kirks5oh]

Cut up all the cards but one. And only use that one in an emergency. Give the card to someone you trust with your life (your parents maybe). And let them know you are only entitled to the card in an extreme emergency. Cc debt can be just as big of an issue as using drugs, smoking, problem gambling, alcoholism, etc. it's almost uncontrollable. Good luck.

 

[Cobra_GATA]

One suggestion I would have is don't close the accounts. For credit score purposes its better to keep them open as long as you don't use them or keep the balances below 35% of the credit limits. Lets be honest, there are very few in this world that can get buy without credit of some sort. Why not keep your score as high as possible?

 

[CM5878]

My car is paid off and has been since spring, but should I be starting a new car fund as well? Of course, that would cut into how much I put a month into chipping away at debt.

 

[lobra97]

good luck OP, i paid off about $5000 in CC debt on deployment. feels great to be debt free, had i been smarter i would've paid it off sooner so i could buy my whipple. good luck OP,, debt sucks penis.

 

[ford fanatic]

I was kind of in your situation about 8 years ago.

I was in a marriage where my wife didn't want to work anymore, we weren't married long and she decided to quit her job to stay home with her daughter instead of sending her to daycare. So i pretty much turned into her sugar daddy. Needless to say the marriage didn't last much longer and we had built up a mountain of CC debt in the 3 years we were married.

After we separated I went out and replaced the mustang that I had to sell while we were together and also bought a really nice 7.3 Powerstroke while I was at it. So then came the divorce and I was left with all of the outstanding debt, and had to pay for the new Jeep wrangler she had. Some how I managed to get all of my debt onto one non secured credit card....and I was bitter and thought about just walking away from the loan and taking a hit to my credit. But i'm not that kind of guy and i'm glad now that I didn't.

I took me about 2 years of working every bit of OT I could get from work and selling my diesel and mustang (all while paying my mortgage and all my other bills) but I finally paid it off. I had saved until I wrote a check for $46K which was the amout that was left after a few years of paying it down. It felt good and was a huge weight off my shoulders.

 

[YJSONLY]

My car is paid off and has been since spring, but should I be starting a new car fund as well? Of course, that would cut into how much I put a month into chipping away at debt.

A car loan interest rate will not /should not be more than a credit card rate. Get those cards payed off and then save money for the new ride.

 

[allister]

A few years ago I read Dave Ramsey's book "Financial Peace". That book seriously, changed my life, and I highly suggest reading it if you haven't. It not only motivated me but it gave me direction with my financial future and taught me what a smart person should be doing with their money. Since then I've paid off all my credit cards and student loans, while contributing to savings and a Roth IRA. My only debt now is a mortgage and car payment.

My advice to stay on track is to keep yourself from things that tempt you. If you have a car/car part problem, don't read car magazines, get on car websites (road side pub doesn't count ) , etc. or whatever you do that gets you to want to spend more money on your car. If you had a shoe problem, don't go to the shoe store. It really is kind of like a drug addiction. Stay away from the friends that are blowing their money on things making you want to blow your money on those things too.

Another motivator for me was forcing myself to look at the interest I was paying aka wasting my hard earned money on. Try to look at it every month if you can.

If you are at all able, try to get a second job. If you already work full time, try picking up another job 10 hours or so on the weekend. Every little bit adds up! Good luck!!