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How I Paid Off $11K in Debt

DebtPicA Back Story about Scott’s Debt

Before I delve into the how I got rid of it, I’ll provide a bit of a background on how I got it in the first place. I was working and making my own spending money from the age of 7 (yes paper routes count as jobs). I had a knack for saving money up for the things I wanted to buy – big ticket items like Super Nintendo and a trip with my cousin to Orlando. Then something incredibly horrible happened, I was approved for a credit card. Suddenly the anticipation of saving up for months was no longer required, instant satisfaction was now the best way to go. A small limit of $500.00 was a great starting point for this mentality. It meant that my minimum payments would never be out of line with what I was making so I wouldn’t have to worry about missing a deadline. I built up my credit score by making consistent payments and spending using my card. The banks love it when you carry a balance, even a small amount of debt counts. To show their appreciation for my payment history, and the interest payments I was generating my credit limit started to creep up. First to a couple of thousand, then a few more until my limit was over $10,000.00. I wasn’t making more money, so I didn’t increase my frivolous spending habits to match the limit – they weren’t going to get me there. The problem came when I wanted to purchase my first car.

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