10 Reasons Why Being in Debt Stinks

[wp_campaign_1]

Being in debt … well, it kinda stinks. Actually, it really stinks. Big-time. I’m not talking about a reasonable mortgage debt, or a $200 monthly car payment. I’m talking about high-interest, huge-balance, keeps-you-awake-at-night levels of debt. The scary kind of debt. The kind you should get rid of as quickly as possible.

We often hear tips, tactics or other pieces of advice about how to climb out of debt. But let’s take a step back, for a moment, to discuss why you should want to get rid of your debt in the first place. Here are 10 reasons why being in debt stinks.

#1: You become stuck in jobs you hate. Debt creates this whole new dynamic where you are forced to work at jobs you hate, doing things you don’t want to do. For some, that means being a janitor. For others, that means working in cubicle.

Regardless . . . → Read More: 10 Reasons Why Being in Debt Stinks

What Happens to Your Credit If You Cut Up Your Credit Cards?

If you have been thinking lately about getting rid of those pesky credit cards that only tempt you into debt, you may have also wondered, “If I cut up these cards, will my credit score go down?”

My wife and I made the decision to cut up our credit cards in February of 2010. We were digging ourselves out of debt (and still are) and we decided that we no longer needed our credit card. In the event of an emergency, we had our emergency fund to pull from; and for all other expenses that might need a card, we had our handy-dandy debit cards!

I really didn’t think about the effect that this would have on my credit score at the time, but I have had a few readers pose the question.

As I researched the question, the simple answer to the question is, “Yes, if you cut up . . . → Read More: What Happens to Your Credit If You Cut Up Your Credit Cards?

How to Live Without Your Credit Card

If you are the type of person that needs to freeze your credit card in the middle of an ice block in order not to use it, this article is for you. Can you picture that? I think freezing the card is a hilarious idea, and usually provides comical relief when the card owner begins chopping the ice block with her stilettos so that she can buy…….more stilettos. The only problem is, once the card is thawed again, it is very likely that we’ll overspend for a few more months and then go through the whole cycle again.

Credit Cards are incredibly convenient. They are thin, light, and quick at the register. But since they are so convenient, we often overspend our means without even knowing it.

If you currently have a balance over $1,000 on your credit card, this post is for you. More than likely, an emergency occurred . . . → Read More: How to Live Without Your Credit Card

Losing Money With a Cash Rewards Credit Card

Bank of America, like most other banks, has recently introduced a new Cash Rewards card. The hook: 1% cash back on all purchases (2% in the first 12 months), 0% APR (in the first 15 billing cycles), and an extra 25% redemption bonus when you redeem $300 or more in cash back rewards.

I have actually been without a credit card for about 6 months now. My wife and I decided to do without it for a few months, and once we realized that we didn’t need it, we chopped it up and threw it in the garbage. It was just too much of a temptation to overspend. Plus, our debit card could do everything that our credit card did.

Even though we don’t have a credit card at the moment, we are still receiving the latest and greatest offers. And, to be quite honest, they are still tempting. I . . . → Read More: Losing Money With a Cash Rewards Credit Card