August 28, 2013

Cash Only Living....

For all of you who were interested in my ongoing posts about my debt which I have not posted about in a long time, I finally have an update for you..

Well, I finally couldn't stand it anymore and..... I went and took out a bill consolidation loan. It's a small loan compared to most but I couldn't stand playing the credit card and credit score game anymore.. In the world of credit the bottom line pretty much is, you're damned if you do and damned if you don't and I for one am just super sick of it all. I was tired of trying to figure out where I was going to come up with extra money to put towards one balance after paying the minimums on the others. Sick of paying outrageous interest rates as well. Worrying about due dates and my credit score etc.. 

In a perfect world, nothing financially unexpected ever comes up, living on a fixed income is simple and easy, and there's always extra to put towards a balance.. In the real world none of it works like this. Something ALWAYS comes up that you don't plan on and it's NEVER cheap. Count on atleast $1000.00 or more for unexpected's. Living on a fixed income is ROUGH, and there's NEVER extra for anything...

I was doing OK with trying to pay the cards down for the first near half of the year and then.... the house insurance payments hit. No we don't have an escrow account etc it doesn't work like that here. We pay it separately.. Then one of my dogs got sick to the tune of over $600.00, the one of them died as you saw in my last post and no you can't even do that cheaply. I need to be able to put something in our savings account which is now nearly empty, FOR the unexpected's or to help with them. I have major dental issue's that I MUST find money for so taking this bill consolidation loan seemed the right thing to do. It has saved us almost $150.00 per month and while that may not seem like much to most, when you live on a fixed income and everything in the world is going up except your income, it's ALOT...

What did I do with my credit cards?

First, I put them in a food saver bag and shrink wrapped them. 

Next, I put them into a container filled with water..

And lastly......... Into the freezer with them!!!


And in Sept once I cook for the month they will get lost among all the bags and containers only to be forgotten about..I want to live on a cash basis only. If we want it and we can't afford to pay cash it has to wait. If we need it and don't have the cash we'll have to find a way to get the cash. NO MORE CREDIT.. Its all just a big scam anyway..

Now I will say one thing though. You're probably wondering why I didn't just cut them all up and cancel them. Well, as much as I am SICK of the whole credit world there may come a time when it will be inevitable like if the air conditioner needs to be replaced.. Sorry, I do NOT have that kind of cash, can't get my hands on that kind of cash and it will take a few years to save that kind of cash. Here in the South, you NEED air conditioning so thats reason number one I kept them..

Reason number two, again as much as I HATE the credit game there may come a time when it will be absolutely, completely no other option but to have to be approved for some kind of credit and I need a credit history. With no revolving type of credit on your report you have no history that is deemed 'Credit giving worthy" so I STILL have to keep some kind of credit score... Doesn't it just suck? I think so....


5 comments:

  1. Well, that sounds smart to me, Robyn. Now to get the consolidated loan paid off..but at least it is manageable now. Sounds like you are on the right track and with the cards frozen it will save impulse purchases. Blessings- xo Diana

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    1. Well thats the thing.. it IS manageable now. Before it wasn't and every month I'd sit down to do the budget and get a knot in my stomach trying to figure out how I was going to do all of it..So now it's one lump payment which is smaller than the minimums I was paying and getting no where, it's an automatic withdraw so I don't even have to think about it and when we can, we will throw extra at it to try and pay it down quicker.. I think it was the right move.. I prayed about it a lot, talked to the Lord a lot and left it in His hands.. Thanks for always coming by Diana. XO

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  2. Don't forget that some of those consolidation loans may save you some month to month, but extend the total life of the loan, hence making you pay longer, and more in total anyway. So try to put some of those released $150 into the loan so it can be gone faster. Though I'm not against cutting them up, closing them wouldn't be a good idea anyway, as you said, it will damage or crash your credit. An open credit card isn't a bad thing to have on your side when it is on your side.

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    1. Yes, thats what we plan to do.. When we have extra we will put it towards the loan and try and pay it off faster and I agree! An open credit card isn't a bad thing when it's on YOUR side which is how I intend it to be.. Thanks so much for always coming by :)
      Robyn
      XO

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  3. Don't forget to visit the Big Three credit companies and check your credit. So VERY often, one will find mistakes *against* us and, when corrected, will improve a credit score.
    It's a great idea but who has that kind of time...it's a vicious racket.

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Please leave your comments, I love hearing from you! :)
~Robyn~ XO