When I graduated college, I found myself living somewhat beyond my means. Increased living expenses, coupled with a lower than expected starting salary, made the transition a financially costly one. Not to mention, I wasn’t particularly dedicated to my spending plan. I spent more than my fair share in the discretionary expenses category, when in reality I really could not afford it.
After racking up nearly $2,500 in credit card debt, and months of minimum payments and carryover balances that incurred significant interest, I decided enough was enough. I stopped using my credit card, stuck to my debit card/cash, and made adjustments to my daily spending habits. I overpaid on the balance when I could and watched the debt, slowly but surely, disappear.
While tempted to cancel my credit card, after I reached “zero balance,” I kept it open as a reminder to myself of how quickly I could get into debt (not to mention, I had the card for some time and the lengthy credit history was favorable to my credit score). The card is still open, and I still don’t carry any debt on it