A 90-Day Credit Card Moratorium

Illumination

At our post-Christmas party, my partners at MoneyDoctors started talking about a credit card moratorium for their families – this meant they will not use their credit cards for 90 days.

With the Christmas indulgence, I also engaged in some wanton (haha!) and indiscriminate spending and have not been able to pay my credit cards in full.  I still do pay way above the minimum but at the rate I am going, and with my steady monthly purchases (not to mention the interest payments, grrrr!), I do not know when I will be free (or if I will be free).

I knew then had to do something that drastic too – and fast!

I processed some rules internally.  Groceries and gas will not be included, I decided (so it is a semi-moratorium…).  But out will be restaurants and impulse purchases and clothes and shoes and the what-nots and the in-betweens.  If I cannot pay for it in cash (or via debit card), I should not have it.  I talked to hubby.  He agreed.  We will do it.

Fair enough.

We broke the rule at day 7.  It was daughter’s birthday and we had to eat out.  So we did.  But the bill was way more than the cash we had so out came my card.

Okay.  I felt some self-loathing after the misstep, but not enough to stop me from pulling out my card (I thought there would be more anguish).  Not a good sign (may mean I am not totally rehabilitated or sold to the idea).  But I am glad to say that was the only infraction.  So far.

But one thing that niggles at me whenever I pay in cash (aside from the fact that it is painful) is that I will not get the benefits credit card companies are giving left and right.

Citibank has its free movies and dining discounts and privileges.  BDO, BPI and the other banks have followed suit with free money offers or other bonuses that are equally amazing (who is not a sucker for free and almost free stuff?).  The offerings have been really tempting, tempting, temping.

Paying in cash meant not having these (when I could have).

But – and I constantly have to remind myself – these offers are premised on having the customers buying, buying, buying.   And getting deeper and deeper (and deeper) into debt (the free stuff would only be given in exchange for credit card slips).

Well, I do have the groceries and the gas slips so I am not totally deprived of the freebies.  And – I have to remind myself – this is good for me, for us.

And this is why I love seeing my mentors, friends and partners at MoneyDoctors.  They keep me on the right path and remind me that yes, I can do it.

Article by Issa. Photo by Danvic Briones. Copyright 2011.
Website: www.YouWantToBeRich.com
Email: issa@youwanttoberich.com

PS.  We still go to restaurants when we have cash.  I am wondering – is it a restaurant moratorium we should have… again?

PPS.  If you need a financial coach with a personal touch, you can go to moneydoctors.com.ph.

PPPS.  In the United States, some credit card companies like the Bank of America and Merrill Lynch launched the Museums On Us program where their debit or credit cardholders can gain one free general admission to any participating museums or institutions (please see list here) upon presentation of their cards and a photo ID.  The offer is valid the first full weekend of each month starting February 5, 2011 through December 3-4, 2011.  But note that the offer is not valid for special exhibitions, fundraising events or ticketed shows and not to be combined with any other discounts or offers.  But imagine!  Arts and culture, for free!

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