Paying our credit card debt was one of the financial burdens we thought we could not cope with eight years ago.
The payment obligation was just too difficult to bear for a single-earning family like ours.
Useful Plastic Card
Initially, our credit card saved us from distress. It was beneficial to us during emergencies and when paying for our daughter’s tuition. If I remember correctly, it was the last transaction we have made using the credit card.
It was even easier to buy school supplies and grocery shopping anytime.
Our son’s hospitalization in 2004 drove us to use the credit card offered to us. It was a suitable time for us because we have spent all of our savings, including the ones saved in a time deposit account, to purchase the expensive medicine for our son to ensure his fast recovery.
With the existence of credit card(s), we felt at ease because we know we have something to fall back on in times of need.
The problem with our credit card began to affect us when we failed to pay the monthly bill in full. We have no problem paying at first because we know how to budget our finances.
But the credit card company knew nothing about your personal struggle; they would charge interest on your unpaid balance and adds that charge to your balance.
We live within our means and do not spend beyond our limit. However, the unexpected event at hubby’s company took a heavy toll on our finances. We make do with a budget enough to pay for groceries and utility bills.
Although we have stopped using the credit card, it does not stop accumulating monthly interest. It reached a staggering amount, and there’s no way we can pay it in cash even if we apply for debt relief.
Leap of Faith
When the opportunity came, we tried our best to pay our credit card debt immediately. We wanted to start with a clean slate. We do not want this debt to be an added concern by the time our daughter enters college.
We finally settled our credit card debt and bid goodbye to the plastic card for good. We have used it for nearly a decade. We have never applied for a new one since then.
Simple Saving Tips
There is no guaranteed way to save money. Ours just happened out of necessity. When projects came one after another, we ensure to put our hard-earned money to good use. We purchased things based on what we need and not what we want (sometimes).
Despite our minimum combined income, we see to it to save for the education of our son.
In two years, we hope to achieve something more secure, such as getting health and life insurance. And, eventually, save for our retirement.
Maintain Good Standing
I do not want to sound like I’m encouraging other people to get a credit card, but it might help you during an urgent situation. One thing to remember, though, is if you own a credit card, make sure to use it wisely and do not use it on impulse.