Credit Card Junkies, Get Your Scissors

Last week I wrote about why paying with plastic can be a great idea. One reason is that if you have a disagreement with the merchant you can dispute the charges and you don't have to pay while your dispute is pending. But my column drew a few irate e-mails from people who say I shouldn't have encouraged people to use credit cards because they may pile up debt. Though I still maintain that credit cards are a great tool for those who pay them off in full each month, this week I'm bringing you my ideas for digging out of credit card slavery.

Credit card debt is a cancer that's spreading in American households. I used to have this disease.

The malignancy started when I received my first credit card in college. Like many students, a company issued me a credit card even though I had no job and no way of paying. I quickly racked up about $2,500 in debt. My parents bailed me out. I racked up an additional $5,000 in debt.

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This time I dug myself out, dollar by dollar. What an achievement! I can't tell you how good it feels to be free of credit card debt. Here are some strategies to help you liberate yourself too.

What I'm about to say may make you break out in a cold sweat: CUT UP YOUR CARDS. Are you feeling the withdrawal symptoms yet? Credit cards give us a sense of possibility that we just don't have with cash. They allowed me to live beyond my means for years.

But I paid for it. Just as an alcoholic can't drink a drop without relapsing, a credit card junkie shouldn't have any credit cards. Zero. Zilch.

You may argue that in this high-tech age, it's impossible to conduct business without a credit card. True, you can't pay cash when you shop online and hardly anybody uses personal checks anymore. But debit cards put a lid on that argument.

A debit card allows you all the convenience of a credit card, with all the limits of your own bank balance. It's an excellent substitute. (Just be careful, because if a thief gets a hold of your debit card they are draining your bank account instead of stealing from a credit card company and it can take a while to straighten the mess out.)

If you believe you must have a credit card on hand in case of an emergency, I've got a creative suggestion for you: Cut up all but one credit card. Then take the lone survivor and drop it in a Tupperware container full of water.

Pop the container in the freezer and put your credit card spending on ice! This way you'll have to think about it for several hours if you want to use that card. You're unlikely to thaw this consumer culture ice sculpture to make an impulse buy. But if you have a true emergency, it will be there for you.

My financial planner boyfriend (now husband!) put me on a spending freeze back in my debtor days. I wasn't allowed to spend money on anything nonessential. For me, that meant no new clothes, no home decorating and no dinners out.

Not using your cards anymore really is the first step in paying them off. Most people who are in a credit card crunch charge their cards to the limit, pay the minimum each month, then spend right up to the limit again until they get their next bill.

After you stop spending, you need to start paying. Here's how I did it.

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