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@Anonymouswrote:
decided to do a personal loan with NFCU to pay off all credit cards. The monthly payment of loan is less the mininum payments required. I was paying more than the minium but still fidnt feel like i wasmoving. well 17k in credit card balances are now 0. these cards are coming out of my wallet.
Congratulations! What are your next goals?
One thing to bear in mind is that credit cards by their very nature induce people to spend more than they would if they had to spend cash. This has been proven by researchers -- it does not apply to every person but it applies to most people. And in your case, you know you are personally vulnerable to this, I expect, since that's how you got into trouble with CC debt.
Therefore I hope you'll reconsider and go back to your original resolution which is to remove them entirely from your wallet, at least while you are paying off the loan. There's no reason not to use them for carefully considered recurring transactions -- e.g. a cell phone bill. Also ok if you think you can create a rule for yourself that you will only use the card in your wallet for gas and groceries (on which you are unlikely to spend any extra). But otherwise having them in your wallet will likely cost you far more each year (in excess spending) then any rewards you might get.
@Anonymouswrote:One thing to bear in mind is that credit cards by their very nature induce people to spend more than they would if they had to spend cash. This has been proven by researchers -- it does not apply to every person but it applies to most people. And in your case, you know you are personally vulnerable to this, I expect, since that's how you got into trouble with CC debt.
Therefore I hope you'll reconsider and go back to your original resolution which is to remove them entirely from your wallet, at least while you are paying off the loan. There's no reason not to use them for carefully considered recurring transactions -- e.g. a cell phone bill. Also ok if you think you can create a rule for yourself that you will only use the card in your wallet for gas and groceries (on which you are unlikely to spend any extra). But otherwise having them in your wallet will likely cost you far more each year (in excess spending) then any rewards you might get.
Yes! I've been trying real hard to budget and hold myself accountable in my budget. Congrats! OP using credit cards can be a trap for piles of debt with a ball and chain takes real will power to not over spend with credit cards as mentioned above.
You shouldn't feel relief, you just moved the debt. The time to feel relief is when you pay off the debt and then make plans and budgets to never need to acquire debt again.
You will likely see a boost in your credit scores. Even though you still have the same amount of debt, the scoring models treat the personal loan better than the unsecured credit debt.