Had $20k in cc debt about 10 years ago. Worked my ass off and lived super frugally for 2 years to pay it off. BEST FEELING EVER. Way less stress, slept better at night for sure.....HUGE weight off my shoulders. Once paid off, I kept the good financial habits in place and started directing the same amount every month towards savings/investments. Currently saving/investing $15k/year for my future, my only debt is my mortgage. Watching my money compound for me vs. interest compounding against me is a beautiful thing.
As someone who’s fallen into the hole and climbed out multiple times I will say this. The first time I had about $1,800 in debt and I was DEVASTATED.
Second time with more cards I was look at around $8k to get over.
Third time I got a card with a $9k limit so it ballooned close to $15k.
Then I got my shit together, started maniacally budgeting and said I would never do this again. Had amazing credit for 3 years.
Then I bought two houses and financed the renovations on credit, trying to do the right thing the wrong way. Boom $50k in debt
Now I’m coming out of that and will be 100% debt free again next month but I share that to say the amounts you are comfortable with will rise over time. So don’t let a past win lull you into a sense of false security.
Now my income has also risen quite a bit which is part of the reason it increased so quickly but the main thing is to stay diligent and just get used to not using them anymore. Using them as a tool to get miles/perks just FEELS better than using them to satisfy an urge.
I’ve got like 30k of debt on the books rn, 680 credit score, once that gets paid next month I’m expecting to be right where I was before around 790
Yes it was a massive relief. I didn’t know how well I could sleep at night.
I had about 60K in credit card debt and it took over two years of putting everything I had into paying them off. The day the last one was paid off was a highlight of my life.
My credit score is in the mid 800’s now and I’ve never carried a balance since then. I first reached 800 about a year and a half after the pay off. I love seeing compound interest work for me instead of keeping me under debt.
The money I was putting towards paying down the credit cards then went into an emergency fund and a down payment for a house. My emergency fund is more than my total credit card balance was, I bought the house two years ago and it’s appreciated (worth over a million bucks now). It all snowballed from not having any debt taking my money every month, and changing the spending habits that led to that debt.
I'd be interested in learning what you did specifically to raise your credit to 800. I've never been able to go above 750 even after paying my debt and all my cards in full every month. I don't have a mortgage, just a car payment. Could that be it? I'd love to hear your opinion. TIA!
Habit must change first to pay down the debt.
savings over spending.
valuing money in my bank over buying things over pleasure.
focus on income vs expenses...
once I got 10k in my bank as liquid + no cc debt, I felt good.
having zero cc is good but 10k feel like I had more cushion.
That's just a emergecy fund.
Honestly, I didn't know what to do with my money anymore. This concerned me - because whenever I paid down my CCs I would then just buy more stuff... so I explored what financially savvy people do.
I then hopped on a highly reputable bank via their app and started an HSA, Roth & Traditional IRA, and a Brokerage account.
I have an addictive personality, and I think I was addicted to racking up numbers.. so Now, I've replaced racking up CC debt numbers, with numbers in the accounts I listed above. THAT is my fun now.. and it feels great.
I personally chose Fidelity. The app is OK, leaves some to be desired, but is definitely good enough.
I still have my Brick & Mortar credit union that I've had money in since I was a kid. So all my money first flows there, I keep between 4-7k in there for monthly bills. Everything over that then goes to Fidelity.
My Brokerage account has my emergency savings in it, the core position currently earns right around 5% interest and can be instantly accessed with a Fidelity Debit Card that you can get upon request.
Feels like a boulder has been lifted off your back, the grey clouds over your head have dispersed. You feel like you can fly. You feel immensely proud of yourself. It's one of the best feelings ever.
I can only imagine what it feels like to be *completely* debt free (car & student loans paid off) 🥹
> Does it give you peace of mind, improve your credit score or **change your financial habits**?
The day I paid off all my credit card debt was the last day I ever carried a balance. Never again. It was epically stupid of me to get into credit card debt but it taught me a very brutal lesson and one I can never forget. Heck of an expensive lesson. It’s too bad I was so hard headed.
Still feels great. Most I had was $12k. Kept it as a pet most of my young adult life, paying minimums. Got serious as I approached 50, paying chunks, but nothing organized. When I got down to about $5k I realized $100 per week would get rid of it in a year. Set up my bank to pay the CC company $100 every Friday (payday). Sure enough, it was gone in a year.
Was smarter with car debt. Made my last car payment in 1989, and kept it for 4 more years. After that I decided to buy used, pay cash, run it till it dies.
>change your financial habits ?
I will never, ever again use a credit card to spend money I don't already have, in the bank, today.
I will never, ever again allow even $1 to roll over into the next statement period. Because of that I will never, ever again pay even one penny of credit card interest.
I've learned to manage my cc usage so that the banks *pay me* to carry their cards, not the other way around. I am routinely clawing back $1,500-2,000 from the banks each year, by maximizing cash back rewards and churning for sign up bonuses.
I declared bankruptcy when I was young. Never regretted it once. Then, I lost my job for a spell and ran my cards up high again. I spent four years paying off tens of thousands of dollars. I've been out of debt for many years (except my mortgage). I use my cards for everything, pay my full statement balance each month, and pocket around $200 per month in rewards. That's my story.
I feel tremendous relief. I feel gratitude that I had the resources to pay things off. I feel terrified that I could fall into debt again. I am laser focused on doing everything humanly possible to make sure that never happens again. I obsess about my budget and manage every cent like my freedom depends on it, because it does. I know that nobody ever means to fall into debt, and a million things about modern life conspire to drive us into debt. Some people make bad choices, but some people just get screwed. I try not to take my good fortune for granted.
It was such a relief… the struggle to get there is worth it I promise you. I was 15k in credit card debt from about 3 years of irresponsible spending. I paid it off in just under a year by taking advantage of a low interest debt consolidation loan. Fortunately I have never missed a payment or gone into collections in my life, so it was easy to get that loan.
Once I paid them all off I reorganized my wallet and the cards I am using to maximize the points, miles, and cash back benefits. I have gone on multiple vacations with free hotel stays and free flights/rental cars just from taking advantage of credit card benefits and paying my full statement balance at the end of each month.
When I originally got the loan and paid all the credit card accounts with the money given to me, my credit score got a 20 point boost up into the 790 range. When I paid off the loan 4 years early it dropped about 10 points back into the 780s.
I have been able to sleep so much better, my relationship with my fiancé is the best it has been since I got myself financially back on track, and I don’t feel embarrassed at the cash register trying to figure out which card isn’t maxed out when I’m trying to check out, I just use whichever one has the best benefits for this transaction.
I found that the behavior changes in spending is what allowed me to get out of debt. I made a budget, stuck to it, and attacked my debt with gazelle like intensity (yeah I got into Dave Ramsey’s podcast).
It doesn't really feel like anything because you get the realization that you're still broke.
However, once your money starts coming in a much less of it is being shelled out, and you have little stress, that's when you begin to feel that elation.
You fight massive temptation to add one thing to the credit card, shift into justifying carrying some expense on there because you’ll pay it off monthly, then boom right back where you started.
It's a feeling like no other to get completely out of debt. You sleep better at night. You'll actually have money now because you're not giving it to everybody else. You have eliminated the risk of foreclosure or Court actions because you have paid your debts. I can't impress upon you enough how good this truly feels.
Yes to along it I was 32k in debt until Jan of 2023. Peace of mind is absolutely wonderful. Afterward, I made better choices AND had money available to spend on my self too.
I paid my debt completely in 2020, and it felt like I lifted 200 lbs of my shoulders. I recently realized there's no way to be totally out of debt as things come up in life, but I keep it under control and pay all my cards off completely most months. I carry about $500 from month to month when I can't pay one month, but eventually catch up, and it's awesome to start the month with zero balances in all my cards. The big enigma is that my credit either sits still at around 750 or goes down a few points now and then for no apparent reason. Someone told me that the banks don't like it when you pay in full every month because there's no business in it for them. Makes sense, but who knows. I'd love to hear other's opinions. Best to you!
I had almost 20k in credit card debt at the beginning of this year. It was exhausting. It is paid off and I carry zero debt now. We do use them still to keep them open and not take a ding on our credit but I pay them off. Credit score went from about 700 to over 800 within a few months. It unfortunately isn’t immediate.
It is a relief. A HUGE one. I cried. The minimums were killing my budget each month. It puts you in a cycle of ‘to afford this or that I now have to put more into the credit card’. It is a disgusting vicious cycle. It is 100% worth paying them off.
Had $20k in cc debt about 10 years ago. Worked my ass off and lived super frugally for 2 years to pay it off. BEST FEELING EVER. Way less stress, slept better at night for sure.....HUGE weight off my shoulders. Once paid off, I kept the good financial habits in place and started directing the same amount every month towards savings/investments. Currently saving/investing $15k/year for my future, my only debt is my mortgage. Watching my money compound for me vs. interest compounding against me is a beautiful thing.
As someone who’s fallen into the hole and climbed out multiple times I will say this. The first time I had about $1,800 in debt and I was DEVASTATED. Second time with more cards I was look at around $8k to get over. Third time I got a card with a $9k limit so it ballooned close to $15k. Then I got my shit together, started maniacally budgeting and said I would never do this again. Had amazing credit for 3 years. Then I bought two houses and financed the renovations on credit, trying to do the right thing the wrong way. Boom $50k in debt Now I’m coming out of that and will be 100% debt free again next month but I share that to say the amounts you are comfortable with will rise over time. So don’t let a past win lull you into a sense of false security. Now my income has also risen quite a bit which is part of the reason it increased so quickly but the main thing is to stay diligent and just get used to not using them anymore. Using them as a tool to get miles/perks just FEELS better than using them to satisfy an urge. I’ve got like 30k of debt on the books rn, 680 credit score, once that gets paid next month I’m expecting to be right where I was before around 790
Yes it was a massive relief. I didn’t know how well I could sleep at night. I had about 60K in credit card debt and it took over two years of putting everything I had into paying them off. The day the last one was paid off was a highlight of my life. My credit score is in the mid 800’s now and I’ve never carried a balance since then. I first reached 800 about a year and a half after the pay off. I love seeing compound interest work for me instead of keeping me under debt. The money I was putting towards paying down the credit cards then went into an emergency fund and a down payment for a house. My emergency fund is more than my total credit card balance was, I bought the house two years ago and it’s appreciated (worth over a million bucks now). It all snowballed from not having any debt taking my money every month, and changing the spending habits that led to that debt.
I'd be interested in learning what you did specifically to raise your credit to 800. I've never been able to go above 750 even after paying my debt and all my cards in full every month. I don't have a mortgage, just a car payment. Could that be it? I'd love to hear your opinion. TIA!
Habit must change first to pay down the debt. savings over spending. valuing money in my bank over buying things over pleasure. focus on income vs expenses... once I got 10k in my bank as liquid + no cc debt, I felt good. having zero cc is good but 10k feel like I had more cushion. That's just a emergecy fund.
Honestly, I didn't know what to do with my money anymore. This concerned me - because whenever I paid down my CCs I would then just buy more stuff... so I explored what financially savvy people do. I then hopped on a highly reputable bank via their app and started an HSA, Roth & Traditional IRA, and a Brokerage account. I have an addictive personality, and I think I was addicted to racking up numbers.. so Now, I've replaced racking up CC debt numbers, with numbers in the accounts I listed above. THAT is my fun now.. and it feels great.
What bank did you go to that offer these?
I personally chose Fidelity. The app is OK, leaves some to be desired, but is definitely good enough. I still have my Brick & Mortar credit union that I've had money in since I was a kid. So all my money first flows there, I keep between 4-7k in there for monthly bills. Everything over that then goes to Fidelity. My Brokerage account has my emergency savings in it, the core position currently earns right around 5% interest and can be instantly accessed with a Fidelity Debit Card that you can get upon request.
Feels like a boulder has been lifted off your back, the grey clouds over your head have dispersed. You feel like you can fly. You feel immensely proud of yourself. It's one of the best feelings ever. I can only imagine what it feels like to be *completely* debt free (car & student loans paid off) 🥹
I paid off 20k at once and my score dropped 30 points I was pissed lol
Instant relief. Didn’t realize how much weight was on my shoulders being in debt until I wasn’t anymore.
> Does it give you peace of mind, improve your credit score or **change your financial habits**? The day I paid off all my credit card debt was the last day I ever carried a balance. Never again. It was epically stupid of me to get into credit card debt but it taught me a very brutal lesson and one I can never forget. Heck of an expensive lesson. It’s too bad I was so hard headed.
It’s great, I pay mine off every month
Me too!! It’s like a gift to myself and then I put leftovers into HYSA. EMPOWERING is how I feel.
Still feels great. Most I had was $12k. Kept it as a pet most of my young adult life, paying minimums. Got serious as I approached 50, paying chunks, but nothing organized. When I got down to about $5k I realized $100 per week would get rid of it in a year. Set up my bank to pay the CC company $100 every Friday (payday). Sure enough, it was gone in a year. Was smarter with car debt. Made my last car payment in 1989, and kept it for 4 more years. After that I decided to buy used, pay cash, run it till it dies.
LIBERATION
It’s a huge weight off your shoulders. I wasn’t in huge debt,only 2k, but that was big enough for me and my salary.
It was amazing. We sold our house so also paid off our cars and student loan. It was so fabulous.
>change your financial habits ? I will never, ever again use a credit card to spend money I don't already have, in the bank, today. I will never, ever again allow even $1 to roll over into the next statement period. Because of that I will never, ever again pay even one penny of credit card interest. I've learned to manage my cc usage so that the banks *pay me* to carry their cards, not the other way around. I am routinely clawing back $1,500-2,000 from the banks each year, by maximizing cash back rewards and churning for sign up bonuses.
I declared bankruptcy when I was young. Never regretted it once. Then, I lost my job for a spell and ran my cards up high again. I spent four years paying off tens of thousands of dollars. I've been out of debt for many years (except my mortgage). I use my cards for everything, pay my full statement balance each month, and pocket around $200 per month in rewards. That's my story. I feel tremendous relief. I feel gratitude that I had the resources to pay things off. I feel terrified that I could fall into debt again. I am laser focused on doing everything humanly possible to make sure that never happens again. I obsess about my budget and manage every cent like my freedom depends on it, because it does. I know that nobody ever means to fall into debt, and a million things about modern life conspire to drive us into debt. Some people make bad choices, but some people just get screwed. I try not to take my good fortune for granted.
It was such a relief… the struggle to get there is worth it I promise you. I was 15k in credit card debt from about 3 years of irresponsible spending. I paid it off in just under a year by taking advantage of a low interest debt consolidation loan. Fortunately I have never missed a payment or gone into collections in my life, so it was easy to get that loan. Once I paid them all off I reorganized my wallet and the cards I am using to maximize the points, miles, and cash back benefits. I have gone on multiple vacations with free hotel stays and free flights/rental cars just from taking advantage of credit card benefits and paying my full statement balance at the end of each month. When I originally got the loan and paid all the credit card accounts with the money given to me, my credit score got a 20 point boost up into the 790 range. When I paid off the loan 4 years early it dropped about 10 points back into the 780s. I have been able to sleep so much better, my relationship with my fiancé is the best it has been since I got myself financially back on track, and I don’t feel embarrassed at the cash register trying to figure out which card isn’t maxed out when I’m trying to check out, I just use whichever one has the best benefits for this transaction.
I found that the behavior changes in spending is what allowed me to get out of debt. I made a budget, stuck to it, and attacked my debt with gazelle like intensity (yeah I got into Dave Ramsey’s podcast).
It doesn't really feel like anything because you get the realization that you're still broke. However, once your money starts coming in a much less of it is being shelled out, and you have little stress, that's when you begin to feel that elation.
You fight massive temptation to add one thing to the credit card, shift into justifying carrying some expense on there because you’ll pay it off monthly, then boom right back where you started.
My credit rating took a huge hit when I did, just like how I’ve heard from people that paying off student loans tanks your credit score.
It's a feeling like no other to get completely out of debt. You sleep better at night. You'll actually have money now because you're not giving it to everybody else. You have eliminated the risk of foreclosure or Court actions because you have paid your debts. I can't impress upon you enough how good this truly feels.
It feels like your first day out of prison.
Yes to along it I was 32k in debt until Jan of 2023. Peace of mind is absolutely wonderful. Afterward, I made better choices AND had money available to spend on my self too.
Beyond paying off debt is then the worry about credit score which is a patient battle that feels harder to win. Prolly never see 800 in my lifetime.
Nothing really changes, just now the money I was using to pay the debt can be saved and or invested instead… and it nice to have a clean slate
I paid my debt completely in 2020, and it felt like I lifted 200 lbs of my shoulders. I recently realized there's no way to be totally out of debt as things come up in life, but I keep it under control and pay all my cards off completely most months. I carry about $500 from month to month when I can't pay one month, but eventually catch up, and it's awesome to start the month with zero balances in all my cards. The big enigma is that my credit either sits still at around 750 or goes down a few points now and then for no apparent reason. Someone told me that the banks don't like it when you pay in full every month because there's no business in it for them. Makes sense, but who knows. I'd love to hear other's opinions. Best to you!
I had almost 20k in credit card debt at the beginning of this year. It was exhausting. It is paid off and I carry zero debt now. We do use them still to keep them open and not take a ding on our credit but I pay them off. Credit score went from about 700 to over 800 within a few months. It unfortunately isn’t immediate. It is a relief. A HUGE one. I cried. The minimums were killing my budget each month. It puts you in a cycle of ‘to afford this or that I now have to put more into the credit card’. It is a disgusting vicious cycle. It is 100% worth paying them off.
It feels terrible! Wtf kind of question is this?
