You paid how much for that?
Are you aware of the interest rate that you are paying on your credit cards? Have you ever calculated what you are really paying for those purchases based on that interest rate?
Bankrate found that 35% of Americans are carrying credit card debt from month to month, up from 29% last year. What’s more? About 43% don't know the interest rates on their cards, which could lead to a debt spiral. According to Transunion, the current average credit card balance is $5,474, also up from 2021.
This was truly eye-opening for me, as I listed my debt, interest and terms then calculated the true cost of the purchases after I paid them off. I wanted to throw up! I would NEVER consciously pay that much for these purchases. This started my delayed gratification journey. If I did not have the money to buy something I avoided using my credit card and instead worked overtime or a side gig and delayed getting it until I "earned" it.
Not only is there an incredibly sense of accomplishment when you pay off your credit cards but it is astonishing how much further your money goes when you are not throwing so much away in interest.
Cut them up of you need to. I know someone who froze theirs in some ice in the freezer so if they were tempted to use it they had to wait for it to melt, forcing them to delay the impulse and use sound reasoning before purchasing. Either way, stop using your credit cards today.
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