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Cut ‘Em Up!

On Friday, I told you that there was one last thing that you should do in order to really commit yourself to the Baby Step process. What is it? You just need to bring out your inner Samurai!So, what are we slicing and dicing? Our credit cards!

If you really want to take the final step in declaring independence from debt, this is how you should do it. Cut ALL of your cards up, so that you can no longer use them. You’re only using cash now, remember? No more using that plastic rectangle as a crutch.

After you pay them off, close the accounts. In my 13 years in the personal finance industry, I’ve seen folks with as many as 21 cards. Yes, you read that correctly… 21! There’s no reason that anyone needs one credit card, let alone 21. All you’re doing by using those cards is keeping yourself reliant on debt and destroying your wealth building power by paying obscene interest rates, like we talked about last week.

But Should I Close ALL of Them?

YES.  As I’ve already discussed, you’re paying cash for everything from now on. There’s no going back. Don’t just put your toe in the water. JUMP IN and commit to it. Ultimately, it’s up to you. If you want to keep one card open so that you keep your credit score propped up, there’s not a huge problem with that. Just make sure you cut it up so you can’t use it at a store when you’re out and about. Some people choose to put their cable bill or something like that onto their credit card to keep a payment history there, thus keeping your credit score good. Again, nothing wrong with that. However, I’d close them.

But What About My Credit Score??

Good point! Tomorrow we’re going to discuss the modern fixation on credit score and why it’s a complete myth.


Feeling some angst about getting rid of your crutch… err credit card? Comment below!

Are you excited about starting your journey to financial independence? Share this post with the people you care about!


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