READER'S ROCK LIFESTYLE MAGAZINE VOL 2 ISSUE 4 NOVEMBER 2014 Vol. 1 Issue 9 March 2014 | Page 23
be tempted to use the last one,
certainly afford $20.
Then we noticed something. Not only were
freeze it in a block of ice. Trying
we not paying down our credit cards, the
to unfreeze a credit card will give
balances were actually increasing - thanks
you plenty of time to think about
to the magic of compound interest. We
just how important that purchase
realize if we continued, we'd never get our
is.
credit cards paid off. We stopped charging
·
Start with the smallest card
amount and pay the biggest
and slowly started paying a little extra on
the cards.
Introducing a New Feature - Finances With
Fran
Most of our regular Readers Rock
subscribers are familiar with me as the YA
author of the Finding My Escape Series, but
what you may not realize is by day, I'm a
financial guru. I'm a degreed accountant,
QuickBooks ProAdvisor, financial
amount you can on it until you
About this time, my husband heard about a
get it paid off, then go to the next
card and pay it off.
seminar put on by two guys named Dave
Ramsey and Roy Matlock. (For those of you
·
Set aside a little money every
familiar with Dave and his program, this
time you get paid in savings -
was before his Total Money Make-Over
even if it's only $5 or $10. You'll
Days.) Dave and Roy were innovative for
be surprised how quickly it adds
the time (mid 80's) because they actually
up. Ideally, you want to have
had the nerve to get up in front of a group
three months of your salary
of credit-happy Americans and say that
saved up in case of an
credit was "bad" and that you should cut
emergency.
Helping you get
out of the red &
into the black!
consultant, and former Commercial
up your credit cards and pay them off.
Thanks for letting me share with you. If you
Relationship Manager for Bank of America.
Now while I don't agree with everything
have questions about money and how to
I also ruthlessly practice what I preach. In
Dave preaches, I do have to agree that
manage it, you can post them to our new
the 27 years since my husband and I have
credit cards can be dangerous. If you
pumpyourbook.com Book Dollars & Sense
been married, we've managed to pay off
charge $500 on a credit card with an 18%
page.
our house and have paid cash for our last
rate and made the minimum payment of
four cars. We aren't wealthy by any stretch
$15 per month it would take your 47
of the imagination, but we've managed to
months to pay off. That's almost four years!
learn a few things about money, and now
Most car loans aren't much longer than
I'd like to share it with you.
that. And that's if you don't add any
When my husband and I were first married,
additional charges to the card.
our idea of eating out was going to Sonic
"But Fran," you say, "I pay my card off every
on two-for-one burger night. We spent
month." To which I would reply, that's all
every dime we took in and then some.
well and good until the month when
Credit was a way of life for most Americans,
something catastrophic happens (sudden
and we were no exception. We did manage
illness, loss of job, etc.) and suddenly you
to save a small down payment for a small
can't pay it off. I'm not completely anti-
house within about a year and a half of
credit card, but I do firmly believe they
marriage, but we purchased virtually
should be used for emergencies only.
everything to go in it from furniture to the
So here's the advice of someone who's
lawn mower with credit. It was no big deal.
managed to get completely out of debt:
Our minimum payment was $20 per month
and even on our tight budget we could
·
If you have credit cards cut all but
one of them up. If you think you'll
$