Financial Peace University Week #4

 They actually did it.  Volunteers came to the front of the room and cut up their credit cards.  I really didn't think anyone would.  So, that was fun.  This was the week I'd been waiting for - DEBT SNOWBALL.  And that comes with the promise of never getting into debt again, hence the scissors and "plastic surgery".  We laughed a lot last night with all of Dave's little anecdotes and his serious passion for living on cash.

The hole in his plan was well spotted though by one of my table-mates.  Dave talked about going to a local apartment complex and applying for an apartment and being turned down because he has 0 credit history.  He joked that he could pull out his checkbook and buy the whole building so the complex's relying on a credit score is flawed.  The problem is the majority of us can't pull out our checkbook and buy the dang building, instead we'd be out on our ear unable to find a place to live.  This is the hole in his otherwise awesome theory.  And he doesn't address that reality.

So, I keep a credit card.  And I care about my and my husband's credit scores because we plan to continue owning cars and need car insurance, which the rates are effected by our credit scores.  And one day, we hope to get another mortgage to buy our forever house.  That will be another time we'll want the best rate our credit score can secure us.

I believe buying only what you have the money in the bank to cover is the best way to live.  GJS and I have not put a dime on our credit card that we didn't pay off before it accrued interest since our honeymoon.  That was over two years ago and we're doing fine.  A change in behavior has been made and I am confident we'll stick to it for life.  If we couldn't find the discipline we'd need to take Dave's advice.  Luckily, this one area of divergence in his methodology has passed and Financial Peace University from here on out will totally align with my philosophy.