Additional Steps for Paying off Debt

Get rid of the Credit Cards!

So you are now in full debt payoff mode, and things are going great, but you still have these credit cards sitting around. What do you do with them? Destroy the cards. Cut them up into tiny pieces. You are paying off debt, so the focus is away from those temptations.

Once the cards are destroyed, I recommend closing the accounts. You won’t be needing them. Why take the time to pay off debt, get debt-free, only to drive it back up? This is a cycle many face. I did this when I was young, got a loan, paid off the debt, then drove them back up. So, for me, I had a new loan that carried all the previous debt, then new debt on the cards I did not destroy. Closing these accounts will force you to be focused and eliminate the possibility of going right back to the beginning.

The balance will still be there even with the account closed. If only eliminating the debt were as easy as closing the account. The company will still want your money, and you will still be paying off the account. You won’t be able to sabotage yourself, though, by using them.

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But what about my credit score?

This is another product of the industry that has become so ingrained in the way everyone thinks. You must have a great credit score! You can’t do anything in life if that score is bad.

Image taken directly from: myFICO

I grabbed this image directly from the myfico.com website. This shows the elements that go into that score. Nothing in this score evaluates your worth, bank balances, lifestyle, or anything else of real value. Only debt, loans, and the repayment of those loans. So what is being measured here? The use of debt reflects how much you love and rely on it. So the belief is the higher the score, the better you are with money and winning, right?

Do you really think this score is a measure of success?

Honestly, I will not look down on anyone who cares about their score. I will not pass judgment either. So take what I am writing for what it is, an opinion. I base my opinion, though, on a few things. One, the above graphic tells the main reason. I don’t use debt, so you can probably guess where my score is. It has been nearly 2 years since I last checked my score. I do check my score and history, not because I care about the score itself, but only to verify that there isn’t any false information or accounts that I haven’t opened.

Focus on successfully killing debt and then enjoying the sun!

Life without debt means ALL debt. I know this sounds very counter-culture these days. Debt is heavily advertised as a necessary part of life. Commercials bombard us constantly with visuals showing ‘how easy’ it is to get a new car loan. You can even shop for your car from the comfort of your home and name your price.

Debt is easy to gain, difficult to lose!

Finally, taking on the task of paying off your debt is a shift in how you live your life. The focus goes away from the Credit Cards. The focus becomes living with cash and with what you have. Your personal income is the key, not credit. Credit cards will not build wealth for you; rather, they will slow down and destroy growth. Maintain the focus with the debt snowball and eliminate the debt.

Destroy the credit cards.

Close out the accounts.

I can promise you that you will gain clarity with your finances, but only you can make the plan actually work.