@Anonymous wrote:
More important than utilization is something that was glanced over here: you had an emergency that needs money, and you didn't have a savings account to cover it.
This means, as of the moment you make the decision to rely on credit to pay for the emergency, you have to instantly switch to poverty mode. Call your cable TV provider and put your cable bill on vacation mode -- you'll get no channels but your bill will drop temporarily. Do the same with Netflix, HULU, Amazon Prime, your internet provider, etc. Chop it all, today.
Next, you will limit your driving to only work, groceries, school -- the necessities. No extra driving for any reason.
Spending gets cut to zero. No new clothes or games or going out to restaurants or bars or movies until that emergency is paid off entirely. No entertainment spending.
When an emergency happens, as they do, the difference between those who come out on top and those who fall behind is how they manage expenses until the emergency has fully passed. As long as any debt lingers, the emergency is not over. It's still in full force.
Good luck getting to that point, it takes courage and determination to put it all behind you, but as long as 1 penny remains unpaid, remember that the emergency is not over. Halt all unnecessary spending today until you can say the emergency has been fully settled in every way.
This struck a cord with me! You are absolutely correct, ABCD! THat was like a big dose of reality, smack in my face, ice cold water being dumped on my head....and I thank you for it! This is a golden piece of advice summed up in a one liner that I will always share.
