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Seems like every time I try to strive to get to a $0 balance something in life always seems to happens whether its job loss, health expenses, or unexpected financial purchases when something breaks down
So for now on I will just manage the debt I have so that it's 60% to 70% of available credit on both cards. Plus I have a card that has no credit limit for extreme emergencies or unexpected situations related to entertainment. Plus it seems like the credit companies don't want you to hit the balance of $0.00 which is why they keep increasing my limit lol I noticed the closer whenever my balance got close to 0 the credit card company increased my credit limit. Also have a 740 credit score which shows I do a good job in managing debt. This will allow me to live a stress free life and stop worrying myself about trying to erase debt.
So for now on I will focus on managing 30 to 35% credit card use and maintaining 70 to 75 % available credit
True, cc companies DO increase limits like that, especially at Christmas time to try to get you deeper in to debt.
But you dont HAVE to use it, and the wider the gap between usage and available credit. The higher your FICO score will go, so you look better to lenders to give you even more money.
Sure you can manage it, but you dont have to use it. Youre paying interest, giving the credit company your money.
Get together $1k as an instant e-fund. Sell what you can, save those 10 Benjamin Franklins. Then you will have money for an emergency without resorting to credit cards for emergencies.
After you have your $1k, Throw all you can at the smallest debt regardless of interest rate, pay it off soon as you can. Pay the minimum amount on all other debt. When smallest is paid off, roll that payment anount into tge minimum payment on the next smallest, and so on until out of debt. Its called the snowball method.
That is Dave Ramseys plan, and it has worked for thousands of people.
Youll be happier having no monthly payments, and can devote all that debt money to retirement savings, or fod a down payment on a house if you dont have one if you want.
Then start saving at least 15% towards retirement in a 401k or the like or in an IRA or ROTH IRA.
Debt wont go away if you don't concentrate on it and eliminate it.
Keeping up with debt is not wise money management. Look for ways to save money on existing expenses and track every penny to see where your money is going.
To much eating out? Cut down to once weekly or once monthly. Same with too much bar hoping or too much coffee out.
Cut the cable. Cut electric, heat and ac expenses by adjusting thermostat and putting up with colder or warmwr temp as the case may be.
Curtail transportation costs.
You CAN modify your budget by using Dave's Every dollar app.
Save something, anything out of every paycheck towards saving to pay off debt or for efund savings or retirement.
Its all about priorities and knowledge of where your money is going.
Earning more often is more of a long term game plan. It might take you a while to get more training, find a better job, work a side business, etc.
Spending less can often be done faster, but it often requires you to look at all your expenses--no sacred cows. It might be you need to get a roommate, or sell an expensive car and buy a cheap used one, etc.
Managing your debt to a certain level won't work. Eventually, you'll pile on more and more.
I would also challenge you to write down every penny you spend for 3 months. Most people don't/won't do this. They think they know where their money is going, but they usually don't. They typically underestimate their spending by 20%.
I'd add that unexpected expenses, job loss, etc. are a normal part of life. Don't just say 'life happens'. Expect the unexpected--and plan for it.
As Suze Orman (not even my favorite) has said (and I paraphrase) "People live their lives as if they'll never get sick, never lose a job, the car will never break down, etc." As she points out, that's not realistic.
Last edited by mysticaltyger; 05-27-2019 at 07:30 AM..
Seems like every time I try to strive to get to a $0 balance something in life always seems to happens whether its job loss, health expenses, or unexpected financial purchases when something breaks down
Sounds to me like you have a saving issue as well. Do you have an emergency cash account? 3-6 months of expenses saved in a cash emergency account will keep you have having to put every little thing on credit cards. It's much better to focus your management efforts on savings than on managing high interest credit card debt, don't you think?
You are paying a lot in interest.
Guess entertainment can be an unlimited emergency.
Seems like you cut your cards up or freeze them in a block of ice until an emergency comes up.
Get a second job to get rid of the debt.
True, cc companies DO increase limits like that, especially at Christmas time to try to get you deeper in to debt.
But you dont HAVE to use it, and the wider the gap between usage and available credit. The higher your FICO score will go, so you look better to lenders to give you even more money.
Sure you can manage it, but you dont have to use it. Youre paying interest, giving the credit company your money.
Get together $1k as an instant e-fund. Sell what you can, save those 10 Benjamin Franklins. Then you will have money for an emergency without resorting to credit cards for emergencies.
After you have your $1k, Throw all you can at the smallest debt regardless of interest rate, pay it off soon as you can. Pay the minimum amount on all other debt. When smallest is paid off, roll that payment anount into tge minimum payment on the next smallest, and so on until out of debt. Its called the snowball method.
That is Dave Ramseys plan, and it has worked for thousands of people.
Youll be happier having no monthly payments, and can devote all that debt money to retirement savings, or fod a down payment on a house if you dont have one if you want.
Then start saving at least 15% towards retirement in a 401k or the like or in an IRA or ROTH IRA.
Debt wont go away if you don't concentrate on it and eliminate it.
Keeping up with debt is not wise money management. Look for ways to save money on existing expenses and track every penny to see where your money is going.
To much eating out? Cut down to once weekly or once monthly. Same with too much bar hoping or too much coffee out.
Cut the cable. Cut electric, heat and ac expenses by adjusting thermostat and putting up with colder or warmwr temp as the case may be.
Curtail transportation costs.
You CAN modify your budget by using Dave's Every dollar app.
Save something, anything out of every paycheck towards saving to pay off debt or for efund savings or retirement.
Its all about priorities and knowledge of where your money is going.
Could the OP really think they are doing a good job of managing debt? Could anyone possibly be that naive and know so little about personal finances? Maybe they are just a troll seeing if they can get responses. That always seems to work.
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