Cash only Lifestyle

Buried in credit card debt? Experts across the board suggest adopting a cash only lifestyle. It’s not easy, but it’s one of the only ways to dig out.

Moving to a cash only lifestyle wasn’t as hard as Angela Davis expected. And just a few months later, this north Texas woman has reduced her debt and feels less stress.

Angela Davis: “I feel relieved. I do. I feel like a weight has been lifted, because I put some restrictions on myself this year.“

When we first met Angela in January, she had balances on 9 credit cards, totaling more than $13,000. Her interest rates were as high as 29%. Since then, progress.

Davis: “I’ve been able to pay off three cards. I wish I were further along, maybe had about half paid off, cause it was about nine cards. By the end of September I will have one more paid off.“

Here’s how she did it. She started paying for things with cash, giving herself a weekly spending allowance. Then she talked to her credit card companies to make payment arrangements and lower interest rates.

Davis: “I called them and said this payment is too high for me. This is what I can afford to give you every month, and most of them initially were willing to work it out.“

And remember her closet full of expensive designer shoes and clothes? She says she hasn’t bought a stitch of clothing since starting the credit card diet.

Davis: “I thought at first that was going to be difficult, but I decided whatever I wanted I was going to make. I was going to sew all the clothing I wanted this year.“

Thanks to sewing lessons at a local fabric store, she was able to do it, and the outfits are beautiful and inexpensive.

Davis: “The fabric cost me three bucks, and it took me about a week to make it. Of course you’ve gotta cut your pattern out and size it correctly for you.“

Davis: “Another sheath, this fabric was like $3 too. It was on the clearance table, so I love that.“

Angela has this advice for people who feel they can’t escape their debt.

Davis: “Once you take the steps to do something about it, you feel better. You don’t feel like ‘Oh my God, I am never going to get out of this debt’. You will get out of it. It takes time, it takes patience, it takes commitment.“