How I attacked my $10,000 Credit Card Debt

Today’s post is about the strategy I used to get myself out of credit card debt.  Eight months ago I had almost $10,000 of consumer debt.  I knew that January 1st was going to be when I had my personal financial revolution but getting to that date was beginning to become overwhelming.

I had a mountain of debt, and it was slowly breaking my back as well as my psyche.  Things were not going well.   At the time, I had two credit cards.  My Visa had a limit of $1,500 and my Amex had a limit of $15,000.  Surprisingly throughout 2008, Amex kept raising my limit without asking me (I started 2008 with a $4,000 limit).  The Visa had a 27.74% APR (yikes!) and the Amex had an APR of 17.24% (a post on lowering your APR will be coming in the near future).

Carrying debt can be an overwhelming burden

Carrying debt can be an overwhelming burden

Now, there are always two methods that people suggest for paying off credit card debt.  The first is to pay off the highest interest rate card first.  This makes economic sense as it will end up costing you less in interest fees in the long run.  The other method a lot of people recommend is Dave Ramsey’s debt snowball.  This involves paying off the card with the least debt on it first, allowing you to feel like you are making progress towards your goal of being debt free.   He describes it as building momentum as you pay off your debt.   I really like Ramsey’s method as it involved setting goals, reaching milestones and achieving successes.

What was I doing 8 months ago?  Neither of these methods.   I had studied advanced economics and I wasn’t following simple economic theory.   I always try to use common sense when approaching a problem, and I wasn’t following the common sense method of Dave Ramsey.  Instead, I was playing mind games with the worst possible opponent, myself.  I was desperately trying to get that large amount of debt on my Amex down to help my psyche.  In order to do this, I was letting more debt add up on my visa (with its higher interest rate) and barely making progress on my Amex bill because it was so large.  I was in debt and being dumb about it.

So how do I find myself where I am today with paid off credit cards?  It was by combining the two methods discussed above.  I paid off my Visa quickly, reaching a milestone and stopping the accumulation of higher interest charges.  With only one card left to focus on, I threw every dollar I could at my Amex bill, eventually going from being in debt to having accumulated cash when I received my tax refund for the year.

While it turned out that I was combining the two aforementioned strategies, it was my singular intention to use Dave Ramsey’s debt snowball method.  I feel having several small milestones (paying off one card at a time) on the way toward a larger goal (getting out of consumer debt) is the best way to feel progress as you are trying to climb a mountain of debt.

If you had a similar story, or took a different approach to getting out of debt that you want to share, please comment or email me at bscheur@gmail.com.

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How I attacked my $10,000 Credit Card Debt

Today’s post is about the strategy I used to get myself out of credit card debt.  Eight months ago I had almost $10,000 of consumer debt.  I knew that January 1st was going to be when I had my personal financial revolution but getting to that date was beginning to become overwhelming.

I had a mountain of debt, and it was slowly breaking my back as well as my psyche.  Things were not going well.   At the time, I had two credit cards.  My Visa had a limit of $1,500 and my Amex had a limit of $15,000.  Surprisingly throughout 2008, Amex kept raising my limit without asking me (I started 2008 with a $4,000 limit).  The Visa had a 27.74% APR (yikes!) and the Amex had an APR of 17.24% (a post on lowering your APR will be coming in the near future).

Carrying debt can be an overwhelming burden

Carrying debt can be an overwhelming burden

Now, there are always two methods that people suggest for paying off credit card debt.  The first is to pay off the highest interest rate card first.  This makes economic sense as it will end up costing you less in interest fees in the long run.  The other method a lot of people recommend is Dave Ramsey’s debt snowball.  This involves paying off the card with the least debt on it first, allowing you to feel like you are making progress towards your goal of being debt free.   He describes it as building momentum as you pay off your debt.   I really like Ramsey’s method as it involved setting goals, reaching milestones and achieving successes.

What was I doing 8 months ago?  Neither of these methods.   I had studied advanced economics and I wasn’t following simple economic theory.   I always try to use common sense when approaching a problem, and I wasn’t following the common sense method of Dave Ramsey.  Instead, I was playing mind games with the worst possible opponent, myself.  I was desperately trying to get that large amount of debt on my Amex down to help my psyche.  In order to do this, I was letting more debt add up on my visa (with its higher interest rate) and barely making progress on my Amex bill because it was so large.  I was in debt and being dumb about it.

So how do I find myself where I am today with paid off credit cards?  It was by combining the two methods discussed above.  I paid off my Visa quickly, reaching a milestone and stopping the accumulation of higher interest charges.  With only one card left to focus on, I threw every dollar I could at my Amex bill, eventually going from being in debt to having accumulated cash when I received my tax refund for the year.

While it turned out that I was combining the two aforementioned strategies, it was my singular intention to use Dave Ramsey’s debt snowball method.  I feel having several small milestones (paying off one card at a time) on the way toward a larger goal (getting out of consumer debt) is the best way to feel progress as you are trying to climb a mountain of debt.

If you had a similar story, or took a different approach to getting out of debt that you want to share, please comment or email me at bscheur@gmail.com.

5,482 Responses to How I attacked my $10,000 Credit Card Debt
  1. Junk removal maryland
    October 20, 2018 | 1:08 am

    usually posts some incredibly exciting stuff like this. If you are new to this site

  2. Esperorina
    October 20, 2018 | 3:13 am

    online 2 5m

    86af vendita di farmacia di online

  3. Jasper Abuhl
    October 20, 2018 | 4:07 am

    Exactly where have you ever found the resource meant for that post? Amazing reading I have subscribed for your blog feed.

  4. Furniture assembly experts
    October 20, 2018 | 4:34 am

    below youll obtain the link to some websites that we consider you’ll want to visit

  5. Auto Insurance Surrey
    October 20, 2018 | 5:24 am

    I really liked your blog article.Thanks Again. Cool.

  6. Furniture assembly experts
    October 20, 2018 | 6:14 am

    below you will come across the link to some websites that we feel you must visit

  7. russian books nyc
    October 20, 2018 | 10:26 am

    Excellent blog! Do you have any tips for aspiring writers?
    I’m planning to start my own site soon but I’m a little
    lost on everything. Would you suggest starting with a free platform like WordPress or go for
    a paid option? There are so many choices out there that I’m totally
    confused .. Any ideas? Bless you!

  8. Arlie Gerstenberger
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    photovraphy during this, isn’t as easy as one may think.
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    being confused for many a kind of poprtala communication devise that alows us to speak with oour
    passed spouse and chipdren or spirits we don. In this
    Shahrukh Khhan has played role just as the onne pplayed
    in Super Hero.

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  2. metal clock dials
  3. metal hands
  4. parent coaches
  5. clock Inserts videos
  6. pit burners
  7. clock Hands Repair
  8. clock synchronization software
  9. fire pit burner
  10. clocks large facilities
  11. parent classes online
  12. time synchronazation clocks
  13. parents coach
  14. fire pit ignition systems
  15. wireless time systems
  16. clock making replacement parts
  17. mechanism for clocks
  18. parenting coaches
  19. how to build a propane fire pit in your backyard
  20. best motor for clocks
Leave a Reply


Wanting to leave an <em>phasis on your comment?

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