ee wrote:
So I have been paying off my credit cards but then I start to run them back up every time. I am afraid to cut them up in case I have an emergency that comes up - plus it doesn't help since I have all of the numbers in another file. How does everyone else keep from running up their cards after paying them off?
Write down your personal financial and credit goals, including a target of how much in savings, your plans for credit, and so forth. Write out a budget with your monthly expenses. Set aside from each paycheck your planned savings amount (into savings) and the money needed for budgeted expenses (into checking.) You can only use a CC for something that's on your budgeted list; something for which you already have money in the bank. So this means things like gas and grocs, rent/ utilities/ cellphone if you can pay by CC, and so forth. If you want to buy something that's not in your budget, you'll have to pay with cash or a check, and even then, only after you've paid off your CC's.
Keep a copy of these two lists (goals and budget) on your computer desktop and another in your wallet. Pull them out and look at them, over and over, until you can chant them in your sleep.
And yes, get the cards out of your wallet and into the freezer or anywhere else dramatic enough to force you to realize that you are betraying your plans and dreams by accessing them. If you can control impulse buying, you can carry one at a time for those budgeted necessities.
Right now, your I-wants are out-shouting your I-needs. Creating a set of goals, complete with a plan on how to reach them and a dream for what you'll do when you hit those goals, will put you in charge of your credit use and your spending. You'll get a lot more pleasure out of Stuff when you buy it because you planned for it.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
