I was talking to a friend last night...

and I told her that my dh and I swore off the credit cards. We are going to pay them off and some of them are already closed by us and I will be closing the rest except for one emergency. She then asked how I was going to do christmas shopping and I explained that I already started because i am doing cash. My dh and I feel in about a year we will be debt free and able to really bank away serious $$.

She said in this time with everything going up its impossible to do. I know I can do it, what do you think (not about me, just in general).

Eta: We only have a 800sf cottage, so our utilities aren't that much and we only pay child support for one child.

Message edited 11/2/2007 10:54:58 AM.

Re: I was talking to a friend last night...

No one can tell you if you can do this or not. It depends on the amount of your debt, your income and the amount you pay each credit card.

But I would not recommend closing your credit card accounts. It could hurt your credit. Just cut up the cards, but keep the accounts open. That way, you won't be adding debt to them, but the credit is there for your report.

Re: I was talking to a friend last night...

Absolutely doable. It's all about budgeting and not spending more than you can afford to.

I wouldn't close your cards though. We keep ours open to keep our credit score high for potential future purchases like a car.

Re: I was talking to a friend last night...

I think it can be done. Once the debt is paid off you will be able to save that cash and it will be easier to save up for larger purchases.

I think it's good to have a cc just in case that you keep in a drawer or use something like AMEX that gives you rewards but you have to pay it off every month. So it's not the same as paying interest on groceries.

Re: I was talking to a friend last night...

I definitely think it's possible. I'm also trying to get everything paid up and closed by next yr. So far this year we paid off 3 cards. I think when you pay cash, it makes you more aware of what you're spending. And what you can do without.

Re: I was talking to a friend last night...

Re: I was talking to a friend last night...

i think it totally can be done. yes, there is inflation but salaries go up. and maybe you won't always have the newest and best of everything but you will be living within your means. my guess is that she's accepted credit cards as a way of life.

Re: I was talking to a friend last night...

Message edited 11/2/2007 11:17:46 AM.

Re: I was talking to a friend last night...

DH and I will be out of cc debt by march. all of our cc debt was used for home improvements on a 0% card.

we plan on never using them again! Its totally do able. if i use it, it will be paid off at the end of the month.

Re: I was talking to a friend last night...

It's not impossible at all. Good for you for moving towards being debt-free!

Re: I was talking to a friend last night...

DH and i will be doing this as soon as we get our raises (his in december, mine in may). we will both have an extrememly significant increase in income (about 25,000 a year combined) and plan on paying off our debt by 2009. IMO if you want to, it can be done - and i would be willing to eat mac and cheese and PB & J for a year if it meant having no CC debt.

Re: I was talking to a friend last night...

Definitely don't close out the CC accounts. My aunt and uncle always paid cash for everything, even houses and cars..... maybe about 10 years ago, they wanted to rent a car, but couldn't. You HAVE to have a CC to rent a car. That's just one scenario. There's probably others where you NEED a CC. You can pay the actual bill with cash, but you need a CC line to secure some things.

Re: I was talking to a friend last night...

Completely doable. It's about what you NEED vs. what you WANT. I've done it, so I speak from experience. If you do not have the cash to pay for it, put it off. It takes willpower, but you can do it.