Monday, February 6, 2012

Reality Check

Me: I paid off all of my credit cards.
Big T: Wow. All of them?
Me: Yep, I have zero balances on every single one.
Big T: When will that show up on your credit report.
Me: They report numbers on the 15th, so it probably won't show up until February 15th.
Big T: Dang, by that time you could have ran your cards back up.
Me: Silence.
Big T: Not you, I'm saying any person in general. A month is a long time.

And THIS is why I need prayer. My mom is right. I could potentially be back in debt before my credit score even increases. Someone asked me how I stay so disciplined in paying debt AND what I plan to do to change my habits/behavior when it comes to credit card.

My answer is that I have to remember that just because I'm out of credit card debt doesn't mean that I'm above it. I can't start using the cards all willy nilly and acting like old patterns won't creep up on me. I have to be vigilant in sticking to my budget, using cash whenever possible and using my credit cards responsibly. Responsibly to me means only using them for things like flights and paying the bill before the interest rates kick in... so right away.

How are you doing sticking to your healthy habits for 2012?


chichi said...

After I paid off my credit card, I decided to use it for airline and gas purchases only. I have a monthly budget set aside for gas and I figured I could just transfer the money from my checking to my credit card monthly and earn reward points. But then I stopped doing that because it started becoming difficult keeping tabs on paying it off monthly.

What I do now is when I need to use it for a major purchases only. I figure out how long it will take me to pay it off before I make the purchase. I've had to use it for incidentals from time to time when I'm running low on my funds in checking account to tide me over to the next paycheck, that way I don't get it in the red.

1other.pretty.face said...

Congrats!! I paid off my credit card debt in july 2011. At first it was hard not to just start using it but if you stick with the same budget that allowed you to pay it off in full you should be good.