I don't like credit cards. Don and I were in deep credit-card debt for many, many years while we raised our girls on a shoestring budget and an unsteady woodcrafter's income. Now we live an all-cash lifestyle with the exception of our regular monthly bills (about $500/month) which are on automatic payment on our (single) credit card. Needless to say, we pay the bill off in full the instant we receive it in the mail. Now that we no longer owe money, the sense of freedom that comes from not having revolving debt on the [bleepity] credit card never stops.
Which is why this week's book recommendation is entitled "Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders" by James D. Scurlock. Written in 2007 just before the 2008 recession, if anything it's even more relevant today as it discusses predatory lending practices by the credit-card companies.
Some of the stories in the book are ugly. Many are heartbreaking. But all underscore the importance of not enslaving one's self to credit if at all possible. If you're vaguely aware that credit cards are bad news but can't quite pinpoint why, this book will explain. Highly recommended.
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Don's product recommendation this week is his good ol' Yankee push-drill.
He keeps this in his everyday toolbox for those times he needs a fast hole drilled in wood or plastic. It's non-electric and fits in tight spaces.
The drill bits are stored in the top of the handle.
Don's a tool guy, and while he has the full cadre of power tools, he also has a lot of hand tools for times when batteries die or power isn't available or (in this case) spaces are too tight to permit a power drill. An excellent stocking stuffer for your DIY types.
(Obligatory disclaimer: This post contains affiliate links. As an Amazon Affiliate, if you purchase through those links, we earn a small commission.)
(Don't forget: A complete list of all our book and product recommendations are linked here and at the upper-right column of the blog.)
Patrice, we ended up with a large amount of Credit Card debt after we first got married which took us a number of years to dig out from. We do use ours for purchases and recurring expenses now as the credit card point programs have enabled other things, but promptly pay them off at the end of the month. Other than one accidental miss a bill last year, I do not believe we have paid interest in a very long time - which is great, considering the cost of interest can be as much as 20% or more.
ReplyDeleteI had a friend in college in the late 60’s who had a couple cards maxed out and ended up getting another to make the minimum payments on the maxed ones. He ended up getting straightened out. He learned to code and was a person who fixed problems with early business computers
ReplyDeleteAhhhh yes, the Credit Card Debacle. Or should I say Crisis?
ReplyDeleteOk, I will admit there was a time when I went completely Brain Dead and charged well over $30k+, YES Thirty Thousand Dollars on Credit Cards.
Stupid for sure, but without excuses I did it to myself.
One day I had just gotten all 3 CC statements in the mail, Yes Old School, and looked at them, just literally sat there and looked them spread on the desk. Then it happened I got Perturbed (Polite Word There) took all three cards and locked them in the Safe and took out $20 in cash, telling myself I WOULD pay these things off. For reference at the time, I was spending an average of 15-20% finance charge on the cards……..
I did without a lot of things for a good 10 months when I paid and paid and paid on the plastic.
The day I got the last of them paid off was such a relief I could not believe I had done it.
NOW for the good part, I use one credit card at a time to purchase almost everything I get/do. BUT here is the kicker, I pay the months spending off the same month as I spend it, meaning if I spend $700 on “stuff” in April, I clear the card on the last couple of days in April. NO EXCEPTIONS, PERIOD!!
I never carry forward a balance or pay a single dime in interest.
Now for the BEST Part, when I use a particular card, I get percentages back on the purchases I make. 5% on Fuel, 2-3% on their “inhouse” purchases and 1% on everything else I use the card for. Don’t sound like much? Let me tell you it adds up fast.
Lastly, it’s nice to have the Credit available if/when you need it, so Yes use those cards, but have the self-control to PAY THEM OFF.
Easy to say???? NO IT’S NOT, I’ve Been there, Done that. Get OUT of Debt!!!!!!!
BTW, once those CC’s are paid off, get that Car/Truck paid off, then that home. Let me tell y’all something, being DEBT FREE is a very wonderful feeling.
Ok, now for a subject that’s near and dear to my Heart, Yankee Drivers, and yes I have a handful of the old, very old ones, remember the Wooden Handled ones? They still work great and are used time to time. And ok ok yes, I use the cordless drills a LOT more, but at times it’s good to remember the “Old Ways”.
Got Hand Saws? A “Skill Saw” is nice, but a sharp hand saw is being at one with your work.