Money Management

Purchasing Your Freedom (Part 3) The Joys of Responsible Debt

So I’m consumer debt free. Yes, I have a balance on my card but I always pay the entire amount due. I now trust myself to use my credit card. Before I would cut them into pieces. Now, I prefer my credit card over my debit card.

There are perks to responsibly using credit cards.

1. Points
So late last year when I cleared my huge balances I watched a YT video and this girl was talking about points. I immediately called all of my credit cards and I found that the only card that had points was my BoA card. So I stopped using the other cards, as they were of no benefit to me and I exclusively used my BoA.

I am not going to close my other 2 credit card accounts (nope, I paid all the balances off and it helps my credit score) but I won’t use them because I receive no benefit. These credit card companies are making billions on the backs of consumers, so consumers besta milk these companies any chance they get. And trust me when I say I LOVE living on this diary farm.

My BoA points have no black out dates and I receive 1 point per dollar I spend. So if I spend $10 I get 10 points.

During the Christmas holiday, BoA had a promotion that gave you 5 points for every $1 you spent for up to $600. Chile, it came at a great time when I was buying all these toys that I BUDGETED for and had the cash to pay immediately after.

Within 4 months I have collected way over 5,000 points. And I HAVE NOT spent $5,000. Whenever I am ready to I will redeem my points and have some fun on BoA’s money. HELLO!

2. Credit Score/Creditworthiness

I opened an account with a credit union. And this particular credit union will only allow you to open an account if you are credit worthy. All I’m going to say is that my credit is sooo damn high. And it’s all because I’ve done what I was supposed to do. I borrowed money from someone and I paid it back with interest, just as agreed. My credit score is pretty damn good, like I can buy a few houses without a down payment good. And I don’t tell you this to boast but to let you know, last year I was drowning in debt but I created a plan of action and I did what I said I would do, I paid my debt off.

Yes, this is a screwed up system you become credit worthy by being in debt BUT if they wanna play that game let’s play. I’ll charge things on my card but I’m charging only necessities and I’m going to pay it off in full. I have a monthly budget for my credit card and I stay within that range. Because I KNOW what I can afford. Use the credit card like its your money. You have but so much money, so use only what you have and what you need. RESPONSIBILITY is key.

Remember when I said the APR on my card was like 25%. My APR is now in the low teens. I called them and told them I need a lower APR and guess what? Oh, they don’t want to lose my business, they lowered it, just like that. And let me say I called them before (if you don’t know you can ask that your credit card company lower your APR quarterly) and they told me “NO” without any negotiations. They LIKED my business because I always paid and they made so much money on my back via interest but they didn’t RESPECT my business.

And I’ll be calling in 3 more months to ask that it is lowered further. Why? Cause I know what I mean to BoA. I know that they want me to stay. They are making money on my back and I refuse not to get anything in this deal.

WARNING!!! You must be responsible. DO NOT PLAY with those folks MONEY because they WILL MESS UP YOUR LIFE. Yes credit cards are unsecured debt (this means a bank cannot come after your house or your assets) BUT they will go after YOUR CREDIT. If you can’t pay your light bill on time don’t F¤#*S with a credit card!

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