Sunday, April 20, 2008

"Credit Withdrawal"

There is a blog called the name gives me an idea for a post. How much did we charge in 2007 on our credit card? 18% of our take home pay. And how about on our "2nd credit card"? 7% of our take home pay. A total of 25% of our take home pay went to our credit card companies. We really should be doing a better job on not relying on credit. The host of this week's Carnival of Debt Reduction,No Debt Plan, has a good approach for using last month's paychecks to pay for this month's expenses.
No Debt Plan's Life Changing Concept.


O said...

It depends how you pay your credit cards. I rarely carry cash, and put everything on my credit cards that give "rewards." We pay in full every month, though, so it's misleading. Over half my pay goes "to my credit card companies" but it's all money we were spending anyway (food, clothes, gas, etc.). I hate going to the bank all the time, and I am terrible about feeling like if there's money in my wallet, it's just waiting to be spent. So I do better charging things (because I still feel like, If I'm charging this, it had better be important). All head games I guess.

Motherhood101aplus said...

@O. Thanks for the comment. Maybe I should explain that alot of my credit card spending is unnecessary spending that I am trying to cut out.

O said...

And maybe if I weren't coming off a month of working triple my usual hours I'd be more up on my blog reading and aware of that! Sorry if I was in out of left field.
That was my hardest Lenten resolution--to buy only needs, not wants. (Needs was still first-world defined, though, with things like Easter Egg dye kits and 21 meals a week included.) But it really changed my thinking (and spending) a lot. I brought all my lunches from home or ate them from leftovers from work lunches and saved a bundle. Even the egg dye, once I was home, I thought, phooey, I probably had food coloring somewhere that would have done the same thing for no more money than I'd already spent. (Of course, time is money too so the tablets were well worth it in the end.)
Did you see the Oprah episode on this? I think it was last Thursday. It was definitely interesting to see two families and what they wasted and how they changed when challenged.

Randall said...

Thanks for the link. I'm glad I inspired you. It does surprise people how much they are paying on credit cards nowaways, especially when you think about how you could STILL be paying on that dinner or item from years ago. Makes you think twice maybe.