I don’t talk too much on the blog about money, except where large corporations are concerned…
I have challenges just like everyone with budgeting, buying things that I don’t need, and using credit. I have thought that it might be a good exercise to just use cash instead of credit for a while to see how it goes. Here is an article from Lifehacker about a couple that were in way over their heads and got out of debt…
I might just try the cash only policy to see how it goes!
Courtney and Michael Wacker had $83,000 in debt with a 32% interest rate. That’s not the kind of debt you get out of easily, but they managed to nonetheless. They started by seeking help from an organization called CredAbility (formely the Consumer Credit Counseling Service of Greater Atlanta) and were able to get the 32% interest rate cut to 3%. Obviously this was an enormous help, but it still left them with a monthly payment of $1,456 they’d have to make over a little more than five years. That’s like renting a one bedroom apartment in Los Angeles in addition to everything else.
- Why more people are ditching credit cards (today.msnbc.msn.com)
- A History of Debt Consolidation (creditloan.com)
- 60 Seconds: Guide to Getting out of Debt (creditloan.com)
- Rejecting Their Credit Cards: More People Choosing the Cash-Only Lifestyle (dailyfinance.com)