A week after pulling into town, I had blown through $1500 entirely on credit, trying to recreate the comforts I’d known at home. After a month, it was $2000. Now, nearly a year later, it’s $3600. I’ve tried to justify each purchase to myself: the brand new bike was an investment, the suit was for job interviews, but honestly, I don’t think I could tell you where half that money went.

Credit card debt has been the biggest wakeup call I have gotten since my Existential Crisis. Considering the economy as of late, I’m pretty sure everyone else heard it too. I believe there is a lot of entitlement in American culture and that it is reflected in our use of credit. I believed I deserved a brand new racing bike when I could have gotten a decent used bike for half as much.

I can’t speak to making great strides towards paying off debt. Like I said in my first post, you can’t cut corners in a circular room. However, I can stay afloat. I pay the minimum every month, more if I can afford it, but it doesn’t happen often.

As a result of my low amount of available credit and the present economic situation, I cannot get a credit limit increase nor a new card. Because of this, I have been forced to live a cash-only life. Other people hide their credit cards or freeze them in blocks of ice. I can leave mine in my wallet because there’s no money to be used on them anyway.

A cash-only existence has its benefits. For example, the local farmer’s market and co-ops only accept cash (and the co-op takes EBT/food stamps), so I have even more of an excuse to eat fresh, local, and often organic produce. I can set aside specific piles of money for groceries and household goods. Having leftover change has forced me to start saving (in a Mason jar, but when it’s full I plan on transferring it into an online savings account).

Credit cards can be a wonderful tool. I put my groceries on credit for two months before I got my first paycheck. Even after I pay my cards off, I’m probably still going to keep my accounts open. Living entirely without credit is a luxury some people (including myself) cannot afford. I do not have the cash for a safety net, and I probably won’t under my current circumstances.

Still, a credit-based life is like the bastard lovechild of a bad relationship and indentured servitude, so it shouldn’t be the only resource you should have on hand in case of an emergency. A later post will focus more on becoming aware of the resources around you, accessing them, and challenges that might come up.

Photo credit: stock.xchng.