Why I will never have a overdraft or credit card again!
In my 20’s when I got my first proper job I decided to get everything that the bank offered. Massive overdraft for €3000. Two credit cards, a master card and a visa and oh look how shinny and new they were in my wallet! I also got a cheque book cause you know I’m a adult now (22) and adults have cheque books!!! Eh ok younger self wtf!!
All of these things combined lead to my downfall! The credit cards had massive limits, €10,000 and €12,000. Way more than what I was earning would cover. I looked on these limits as targets. I even changed my car once while out shopping, no thought put in it, drove away with a brand new car which I put on my credit card! Crazy stuff! I wrote cheques left, right and centre and thought you know I’ve got the overdraft, they won’t bounce. I was always in the red! My wages didn’t even clear the overdraft! Not once did I think how will I ever get out of the red. Don’t forget this in addition to the mortgage and top-up loans I had!
Well that day came and I did have to face it. I had to live on nothing and work my arse off to clear them. The day I made my pay-off to the overdraft (which was with a debt agency at that stage) and the day I walked into the bank to pay off the credit cards, I can only explain it like a giant cloud of stress and sleepless nights were lifted off me. For the first time in years I felt a sense of freedom poor over me!
Now as a fully functioning adult, I will never get credit cards or overdrafts again. I don’t need that feeling of instant gratification. Don’t get me wrong I still love that feeling but I don’t like the downer that comes after. The panic and fear of oh god I’ve to pay this off. Something my younger self lacked for a little while.
The lowdown on overdrafts and credit cards. First the overdraft. Your bank can allow you to have a overdraft for example: a extra €500. So your bills don’t bounce right? But if your budgeting right you will know the dates of when the bills are due and will have kept that amount in the bank. I’m a cash spender so I don’t use my bank only for wages and direct debits. Yeap you avoid the €12 charge or whatever madness your bank charges but you can also avoid that by having the money in the bank! Also the bank charges fee’s for every time you go into the red! More money been thrown away! Plus by not having an overdraft you avoid the temptation to overspend and that’s the important one. No seeing a lovely new dress and going sure I’ll get that and pay later! Getting out of the red is harder than going into the red! Your spending your money before you get it! So your wages aren’t your own.
Now to the dreaded credit cards! Now I know there are some people who have great self control and can buy things on the credit card and clear it straight away when the bill comes! Avoiding the charges. And I salute them kind of people I really do but I’m not one of them! The temptation to spend for me is massive! If I know I have such easy access I will spend. To avoid this I just don’t have one. It’s not needed now anyway as my bank card is a visa debit so it works in the same way as a traditional credit card except I need to have the money in bank. Therefore, I don’t go into debt yeah!!!! The interest on cards for not paying your bill in full is crazy anyway. Again it’s throwing money in the bin!
I hope this helps! I could have done a pro and con lists with loads of facts and figures but I wanted it to come from a real person who has personal experience in the wickedness and the nasty side of them! Oh and as I’m not black listed from the banks anymore 😅 (my 5 years was up at the start of the year) I can get them again and do you know what?? The bank sent me a email inviting me to apply and there was zero temptation. In the bin the letter went!!!
