Kris Attfield is the author of three books: The Book of Finch, Letters to Whomever, The Eagle's Sore: A Novella and Pfhonge, The Inter-Continental Brink of Madness, Air Defence, Doorless Darts and Blaine Bananatree - a bunch of video games.
Article - How To Pay Off Your Credit Card Debt
How To Pay Off Your Credit Card Debt
By Kris Attfield
Are you burdened by credit card debt? Do you find the temptation to spend the money you just paid off to be too much burden on your financial life? The interest payments mount up, and getting out of the hole can be very difficult.
I will now share with you my idea of how to pay off your credit card debt.
All you need is:
1) A friend
2) A safe that requires two keys to open
3) A credit card
All you need to do is:
1) Buy the safe. I know there are depository safes out there that require two keys to open.
2) Keep one key for yourself and lock it up somewhere else.
3) Give the other key to your friend and tell them you need them to help you pay off your credit card debt – so do not provide the key except in cases of emergency
4) Make sure your online banking is set up so you can pay your credit card without needing the card.
5) Put the credit card in the safe and lock it up. You will not be able to open the safe without your friend’s permission, and your friend cannot access the card without your own permission.
6) Make your monthly payments – try to pay much more than your minimum payment to pay off the principle faster
Without a credit card available, you might not be able to buy things off the internet. In this case, order a prepaid card from a bank, and just load it with your funds – you will not go into debt, and you will have the convenience of buying things online if you want. I know that in Canada, BMO offers a prepaid travel mastercard which you use a lot like a credit card – but there are no debt payments to be made, you just load and go.
7) Have patience. The debt will eventually be paid.
For myself, personally, this idea was only going to partially work. I gave my father my credit card, and he does a really good job of keeping me away from it --- the problem is that I still have easy access to my credit card number in my online banking and it's not hard to remember the security code or the expiry date - so, my father had a new idea:
To get someone who I trust, like my father or my mother, to open a savings account that I can deposit into that I can't withdraw from, and they would hold this money in trust for me until the balance of the account meets or exceeds the balance or credit limit on my credit card, at which point the balance can be released and used to pay off the debt.
Of course, this idea only works for me because I have a really-really low interest rate on my credit card, for people with higher interest rates doing this might not be such a good idea.
Well, I loaded up a whole bunch of money on my credit debt back in 2010, especially paying for book publishing, but now, within the week, I finally plan on making my last payment to my credit card company and getting out of debt --- this time, hopefully, for good.
My previous "additional" says you can open a bank account and someone else can hold your money in trust so you can't touch it so you can pay your debt. This method is actually something I never did, we only thought this could be a method. However, for a while I was stashing money in my Dad's safety deposit box.
What I figured really helped me save up was to INVEST. Of course, this idea isn't the greatest because not everyone knows investing very well, you could potentially lose money, and it only really worked for me because I had a low interest rate credit card ------- but I found that buying corporations repetitively every month was a good way for me to save my money.
Having bought a corporation, you've already spent your money, and personally I didn't usually feel much need to spend money already spent purchasing a corporation. Also::: Every year that I invested, I made money. I didn't make money on all my investments, but overall, in grand total for the few years I've been investing --- I made a sum total gain of money every year ---- way better than a savings account.
So, I'm finally paying off my debt --- which, when starting out, was sizeable --- and I did it with -- 1) My dad kept my credit card away from me 2) My dad allowed me to put money in his safety deposit box and 3) Investing paid off for me, although I know this isn't the best idea for everyone, so be warned --- investing can cause you to lose your money.
So yeah, I'm just so happy and thankful that I could trust my dad. And I'm getting excited to make my final debt payment. Then I'll hopefully be in the clear.