As I look back on my colored financial past, it occurred to me that I have had two distinctive outlooks regarding my credit cards and how I use them.  Basically, I had a certain perspective towards them when I was getting into debt and when I was deep in debt, and then I had a different perspective once I began to dig myself out of debt and ultimately escaped the debt that plagued me for so long.

I thought it might be useful to go through each of these perspectives to maybe assist others in their efforts to get out or stay out of financial ill health.

When I was well on my way into my personal debt (which reached about $20,000 at its peak) I was living care free and spending like it too.

I looked at my credit card(s) as something I could pop out of my wallet at any time, to spend on anything I wanted.  There was never a thought that crossed my mind about whether I could afford something or not, or how I would eventually pay off my credit card.

To be honest with you, for the longest time I simply viewed my credit card bill(s) much like people view their car payment or their mortgage payment—as something that I would have for the rest of my life.

And finally, I think my worst mindset back then was it was almost as though I thought somebody else would be paying off this credit card debt for me.  Or, actually, that the person that was making all these purchases on the card was not the same person that would have to pay it back.

Obviously, these are all very incorrect and dangerous positions to take regarding the use of credit cards.  It took a good bit of time for me to realize that all of these were false, and changing them and paying off the massive debt that I amassed took quite some time as well.

Once I did, however, I was like a new person.  Let me list for you a few of the “new” outlooks that I have regarding using my plastic.

First and foremost, if you cannot afford to pay off an item by the end of the month, then you cannot afford the item.  It is as simple as that.  Once you adopt this attitude, your credit card debts will slowly, but surely, disappear.

Also, credit cards bills are not something you should view as something you’ll have for the rest of your life.  If you are carrying balances at all, you have no idea how much money you are simply wasting away.  Get your balances paid off, and use that extra money on something you really want to spend it on, rather than donating it to your credit card company.

Finally, you need to take personal responsibility for your spending.  No one is responsible for your credit card debt but you.  You are the one making the purchases; you are the one that has to pay the bill. When you put something on your credit card, it is exactly like paying cash.  And if you are carrying a balance, you are paying more cash than you need to.

If you would like to learn more ways to save more, spend less, and generate extra income in your everyday life, visit me at Your Finances101.

David Bakke is the creator and author of the personal finance blog, Yourfinances101.  He also published his first book in the field, titled “Don’t Be a Mule:  A Common-sense Guide to Saving More Money…” currently available at Amazon.com.  He lives with his wife and young son outside Atlanta, GA.

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