Credit card debt


– or “I want it now”!

I use my credit card more than most. In fact I clock up so much that, at the end of each year, my wife and I manage a three day weekend in Paris when the money I earn on spending on the card (a penny in the pound) is paid. The commission pays for EuroStar rail tickets and the hotel bed and breakfast charges.

But, my friends ask, how much do you pay each year in interest. The simple answer is “nothing” as we pay off all our cards by direct debit each month. I have a pathological hatred on paying interest in any form. However,” interest on savings” interests me greatly and I really hate all the people causing all the debt as it means my earnings on my savings are deteriorating as the Bank of England reduces interest rates. In fact we pay all regular bills by direct debit in case we are on holiday when bills fall due.

I didn’t always have savings because a decade or so ago I had credit card debts and bank loans and the interest before I left the house each month was enormous. But somehow I managed to remove all the debts and started saving the interest I used to pay. One thing that helped was that I wasn’t afraid to tell my friends: “I’ll pass – money is a little short at the moment”. After all I could live without that money in the past, so why not save it in the present, for the future.

The wise readers here will use any rebates from the government to pay off their debts rather than going out spending the money. Don’t worry about the economy, there will be millions of people, stupid enough to say “To hell with it, let’s have a great Christmas!”

Those of you who read yesterday’s blog and have completed the “crash course” which Chris Mortenson has produced will know that now is the time to take stock of everything and start to reduce debt everywhere you can. Although I don’t agree with all his summing up at the end, in essence he is right, and up to the end of chapter 18. Chapter 19 is pretty straight forward but in Chapter 20 I am not 100% convinced (I “believe” but not completely). However, he has spent four years in research on this matter, he received his PhD as a scientist and has had extensive experience in the financial world. From this we can deduce that his reporting of facts will have been strictly researched.

Ampers.

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