Confession of Credit Card Misuse

February 6th, 2008

This is my confession. Rebate offers and cash back plans finally won me over and we got a credit card. For a long time, we paid it off every single month, without question. Having the credit card was a blessing (easier to keep up with spending AND the cash back program paid for Christmas).

The last two months have been tight, and I slipped on my payments. The interest isn’t hurting too much, but if I don’t do something fast then I’m going to negate the whole reason for getting the card in the first place – the cash back program.

1. Stop using the card! Go back to paying cash or using the debit card until the credit card is paid in full.

2. Quit pretending. Once interest starts accumulating the rewards programs become moot. Stop acting like money is being lost.

3. Pay before the due date, and pay more than once. As extra money becomes available or as money gets set aside, pay it on the credit card balance. Interest accrues every chance they get.

4. Go back to what works. If the cash isn’t on hand (in the bank or in savings) then don’t charge it – plan and simple.

I made a mistake (which I still haven’t admitted to my hubby, so don’t you tell him ). Instead of getting all pious about it, I’m just going back to what I know works. It will all be sorted out soon enough if I do. It’s waiting that usually ends up getting you in a mess that you can’t deal with on your own.

Entry Filed under: Budgets and Finance