Paid off and closed out my only credit card today

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lilbromarky1
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Paid off and closed out my only credit card today

I'm a little nervous to make this transition but I have family to back me in case of an emergency while I build savings.   I told a few people and their first reaction was to tell me that closing out all credit cards will hurt my credit score.  Well guess what, I dont care about my credit score anymore (which by the way is/was in the low to mid 700's).  Its nothing but a trap which I think everyone is aware of at this point.  The more accounts you have open, but not maxed, the higher your credit score.  The more accounts you have open, the more likely you are to use them and fall in over your head.  Its just human nature. 

The reason I closed the credit card was, I found myself spending on the card between pay periods at my job, and then the night before pay day, losing sleep trying to crunch numbers in my head. 

Questions like, how much do I owe on the card? which bill should I pay first? what if I pay half the bill now, half later? Do I really need to pay off the card this month?  Before you know its 4am and I havent slept a wink.   I find that payday is the most stressful 2 days of the month and it should not be this way.  Payday should be time for enjoyment not stress.

No longer however.  Purchases will come from savings.  If I come into an unfortunate circumstance, I already spoke to my family and they promised to loan me whatever needed so that no dealings with a bank will be required from here on out.

The banks can all wallow in the filth theyve created.  I'm one step closer to leaving the system.

Edited by admin on 11/08/2014 - 06:06

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Captain Benny
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Awesome!

Congratulations.   Debt makes the modern slave and you are now free of that portion of the debt trap!  I think its something to be proud of no matter how friends and family may respond.  I think I know part of the feelings you're experiencing.  It felt quite rewarding telling Bank of America to fuck off a while back when I closed the only account I ever had with them: A high limit CC.

When they asked why I wanted to stop doing business with them when I had such a good working history and high limit, I replied "I'm tired of doing business with a criminal organization."  The lady on the phone went silent and 20 seconds later had to put her self back together before continuing the account closure process.  Not sure if she was in shock/realization that she worked at a criminal organization or if she was looking for a scripted response to read back to me over the phone ... to me she seemed a little shocked when she started talking.

That day I felt like I could hold my head a little higher.  Kind of like the first time you ever have sex... you're walking down the dorm room hallway afterwards thinking "Hell yeah, I'm the man!!"  Each step in the awakening and debt slavery overthrow process has felt this way for me.  I don't know any other way to explain the joy than that!  So congratulations.

I've never been negative on net balances and always been able to pay off any debts owed with a mortgage being the only exception.  I honestly doubt I'll ever pay the mortgage off, I'll probably leave the country long before then or all debts will be reduced/wiped/destroyed as part of the great economic collapse.

My recommendation: Save what you can and build up the near term couple weeks of fiat bucks buffer.  Not like it needs to be said but don't store in any bank more than the minimal account balances, just store at home.  You get no interest in banks/CUs anyways nowdays.  Then immediately focus on a short term food/water buffer in the event of a natural disaster or severe economic shock.  The third and lowest of priorities should be gold and silver hoarding. :)

Only reason I have a credit union account is to cash checks and pay mortgage debt.  One day I hope to drop the CU entirely.

Dr Durden
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Good for you, man! You're in

Good for you, man! You're in the minority. 

I paid down two lines of credit to the tune of $12k in the past week alone.

I don't agree with closing those lines (esp if they're old) but you have to do what's best for you. I'm all about taking advantage of the current economic trend (ie free credit, buy now - pay later). I've had JPM-Chase on the hook for 10's of thousands worth of PM's - Fuck'em!!

True story: I never checked my credit score until I bought my house 2 years ago. I figured it was good, but never had an issue. So I was pleasantly surprised when it came back at 820. Point being; if you're good for it and pay back what you've borrowed, it will only go up. 

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Captain Benny
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the credit score aspect of this

I'm of the opinion now that I "bought" (rent from the government through taxes) my first house that you should say "fuck" to the credit score.  Its just another element of big brother monitoring you and the populous.  Getting off their books might be the best possible action to take.

I could be wrong, but my moral compass says its time to say good riddance to it as much as you can.  Cut as many ties to the banking industry as you can.

I had a CC for my business account and said "fuck it, this card is useless" because it's credit limit was so low.  I now use my personal CC for business transactions and don't mind it at all.  I have one CC with about a 12k limit and then a really low limit emergency card with a different financial institution.  I haven't used the emergency card for a long long long time.  I only occasionally make a single purchase on it so they don't close the account.  I also have an ATM card for business which I haven't used in many months.  As I wrote the above comments it is making me seriously consider closing the "emergency" card entirely.  I only use the primary card for online transactions and those are becoming rarer over time.  If... no when...  SHTF, I really doubt my "emergency" CC will offer me anything of value.  Junk silver would be a far better utility at that point.

I'll probably close that emergency CC this evening, if I can get ahold of customer service.

lilbromarky1
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Captain Benny

Captain Benny wrote:

Congratulations.   Debt makes the modern slave and you are now free of that portion of the debt trap!  I think its something to be proud of no matter how friends and family may respond.  I think I know part of the feelings you're experiencing.  It felt quite rewarding telling Bank of America to fuck off a while back when I closed the only account I ever had with them: A high limit CC.

When they asked why I wanted to stop doing business with them when I had such a good working history and high limit, I replied "I'm tired of doing business with a criminal organization."  The lady on the phone went silent and 20 seconds later had to put her self back together before continuing the account closure process.  Not sure if she was in shock/realization that she worked at a criminal organization or if she was looking for a scripted response to read back to me over the phone ... to me she seemed a little shocked when she started talking.

That day I felt like I could hold my head a little higher.  Kind of like the first time you ever have sex... you're walking down the dorm room hallway afterwards thinking "Hell yeah, I'm the man!!"  Each step in the awakening and debt slavery overthrow process has felt this way for me.  I don't know any other way to explain the joy than that!  So congratulations.

I've never been negative on net balances and always been able to pay off any debts owed with a mortgage being the only exception.  I honestly doubt I'll ever pay the mortgage off, I'll probably leave the country long before then or all debts will be reduced/wiped/destroyed as part of the great economic collapse.

My recommendation: Save what you can and build up the near term couple weeks of fiat bucks buffer.  Not like it needs to be said but don't store in any bank more than the minimal account balances, just store at home.  You get no interest in banks/CUs anyways nowdays.  Then immediately focus on a short term food/water buffer in the event of a natural disaster or severe economic shock.  The third and lowest of priorities should be gold and silver hoarding. :)

Only reason I have a credit union account is to cash checks and pay mortgage debt.  One day I hope to drop the CU entirely.

Thanks for the reply.  The food and water storage is already taken care of.  Its the 2 week cash buffer that I have to build up. I also have savings but its not liquid at the moment.  Its also not in a bank so I'm not worried there.  My checking account has less than a dollar in it as of today. 

I do have a mortgage to pay off, fixed rate at 6.35% on about 50K of remaining principal.  I've often contemplated the scenario you mentioned where you're not sure if you even want to bother making the sacrifices necessary to pay down a house that will be worth less than all the time and money you just threw at it.  We have relatives overseas and the passports are ready to go if needed.  It really comes down to how badly we want to stay (or go).  We'll see how things play out.  I'm leaning towards stay and try to knock out the mortgage in the next 5 years so that monthly bills arent too tragic once taxes start getting retarded in the USA.  We shall see.

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lilbromarky1
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By the way, me paying down

By the way, me paying down that card and closing was doing my part to fight off monetary inflation ;)

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Indentured_Servant
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lilbromarky1 wrote: Thanks

lilbromarky1 wrote:

Thanks for the reply.  The food and water storage is already taken care of.  Its the 2 week cash buffer that I have to build up. I also have savings but its not liquid at the moment.  Its also not in a bank so I'm not worried there.  My checking account has less than a dollar in it as of today. 

I do have a mortgage to pay off, fixed rate at 6.35% on about 50K of remaining principal.  I've often contemplated the scenario you mentioned where you're not sure if you even want to bother making the sacrifices necessary to pay down a house that will be worth less than all the time and money you just threw at it.  We have relatives overseas and the passports are ready to go if needed.  It really comes down to how badly we want to stay (or go).  We'll see how things play out.  I'm leaning towards stay and try to knock out the mortgage in the next 5 years so that monthly bills arent too tragic once taxes start getting retarded in the USA.  We shall see.

I just refi'd my existing mortgage from 6% down to 3.7%. No cash out and paid closing costs of $967 out of pocket. Existing balance was $63k. I'll save $35k in interest, pay off nine years earlier and my payment only went up by $20. It is certainly worth looking into.

I_S

lilbromarky1
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I have a kooky plan in place

I have a kooky plan in place to pay mine off in the next 5 years.  Looked into refi and that doesnt work too well when you're 10 grand underwater ;)

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SilverFocker
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Different veiw

I agree with DR Durden on the CC. My take on the mortgage strategy is, if you really don't want a mortgage that is fine, no one does, or do they?

I was paying payment plus half thinking I wanted to get out from under this as fast as possible.

Then 08 happened, I then realized that my extra funds would be better spent on buying extra PM's as inflation was buying me less, but my mortgage pymt was fixed.....it was inflation proof, so my extra is piled into everything else that hedges against the fiat.

My mortgage interest is very low, the dollar power is on a declining slope......we have 15-20-30 years to pay a fixed based sum off , what will the dollar be worth then, what will my extra purchased PM's be worth vs the extra I would have paid on the mortgage. Given the situation as it stands, I will bet the latter as the better investment. 

We all see what is coming if drastic changes are not done yesterday, we just don't know what it will look like in the aftermath when it happens.

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I totally agree SilveFocker.

I totally agree SilveFocker. I was doing the same thing but realized a bit earlier in '06 the advantages of PM's. I do not mind carrying fixed rate, dollar denominated debt one bit as long as I'm not underwater on it.

I_S

SilverFocker wrote:

I agree with DR Durden on the CC. My take on the mortgage strategy is, if you really don't want a mortgage that is fine, no one does, or do they?

I was paying payment plus half thinking I wanted to get out from under this as fast as possible.

Then 08 happened, I then realized that my extra funds would be better spent on buying extra PM's as inflation was buying me less, but my mortgage pymt was fixed.....it was inflation proof, so my extra is piled into everything else that hedges against the fiat.

lilbromarky1
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SilverFocker wrote: I agree

SilverFocker wrote:

I agree with DR Durden on the CC. My take on the mortgage strategy is, if you really don't want a mortgage that is fine, no one does, or do they?

I was paying payment plus half thinking I wanted to get out from under this as fast as possible.

Then 08 happened, I then realized that my extra funds would be better spent on buying extra PM's as inflation was buying me less, but my mortgage pymt was fixed.....it was inflation proof, so my extra is piled into everything else that hedges against the fiat.

My mortgage interest is very low, the dollar power is on a declining slope......we have 15-20-30 years to pay a fixed based sum off , what will the dollar be worth then, what will my extra purchased PM's be worth vs the extra I would have paid on the mortgage. Given the situation as it stands, I will bet the latter as the better investment. 

We all see what is coming if drastic changes are not done yesterday, we just don't know what it will look like in the aftermath when it happens.


 

Perfect!  I agree with this 100%

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Zoltan
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Congratulations Lil Bro but....

First off congratulations on paying off your cc balances.  Paying high interest rates in after tax dollars is a fool's game.

However, there are times when you may need a credit card, renting a hotel room or a car without one is difficult, also buying something online is facilitated by having a cc and you get some protection from fraud.

My advice to others considering closing out their last card would be just don't carry it with you in your wallet if you don't have the self control not to use it.  For me I just prefer to pay cash for everything now but keep a cc in my wallet for use in an emergency.

Z

Dr Durden
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If you "lack control with a

If you "lack control with a CC" that's just a symptom of an underlying problem. To say there's something inherently evil with CC's is just an excuse for people with horrible relationships with money (ok, debt). Sorry for the mini rant.

If you're not good for it NOW, then don't buy it in the future. Creditworthyness is an aspect of your overall health as a person IMHO. No different than saying you eat right, exercise, etc. If you have bad credit, you're not healthy...it's as simple as that.

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Captain Benny
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Followup

Just wanted to followup on the discussion above.  Never had any problems with debt on my CCs as I don't carry any balances, but I went ahead and closed out that extra CC I had recently.  Now I'm down to one personal CC and a couple ATM cards.

The only thing the CC is useful for me for is of course the above noted online purchases, hotel bookings, flights, etc.  One item not listed above is that ATM cards are great for currency conversions when you're in a foreign country since carrying large amounts of cash can be problematic.

RickyBobby
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no need for credit

Congrats lilbromarky1

i'm portuguese and i've been living in san francisco for the last two and half years. Without a credit card!
I only have a bofa debit card that allows me to buy stuff from ebay or amazon and to book cars, and the rest is history. Fellow americans are surprised when i tell them i only spend what i have.

Mint.com provides great help tracking your expenses! If you want to buy a home, pay it in cash! Otherwise, just rent it.

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