I appreciate the steps that Carl shared. My question and concern about cutting up all credit cards is two-fold. One, while it would not have me sleeping in a box, if my washing machine died (for example) and I had to buy a new one, I would not have enough cash on hand to buy it. While it is not a 'sleep in a cardboard box type of emergency, having clean close to wear to my job is important. And laundromats are not cost-effective over time. It is an example of something I would feel the need to replace to keep my life on track. So keeping a card active for that kind of emergency would seem wise. Two, I've read that closing credit cards will negatively impact our credit score. And to stop using them, which will cause them to go dormant produces the same effect, I think.
I wholeheartedly agree that credit cards are one of the biggest problems contributing to our mounting debt. And, if one has spent down their savings, and using their income to pay off debt, how do we buy the necessities that are before the cardboard box and not nonessentials like a 65" screen tv or a trip to Hawaii, but things we can all live without.
looking for ideas...
Michelle
