Monday, December 14, 2009

The 30 Day Zero Rule

It amazes me that "the average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008." (Source: Nilson Report, April 2009) And yet we still use our credit cards regularly without remorse.

I am fed up with trying to pay down credit cards, that continue to grow in size. It's pointless!! That is why I am encouraging everyone to start using the "30 day zero rule."

30 Day Zero Rule:
From this point forward I will not allow myself to use a credit card unless that card had a Zero balance within the last 30 days. If you pay your credit card off each month, than you can use that card; but if you carry a balance for more than a month, you cannot use that card again until is has been paid off in full.

Any credit cards that currently have a revolving balance are subjected to this rule and therefore cannot be used. This is the only way to guarantee that your payments will actually decrease your debt.


cristine said...

Great post.

Dan said...

Thank you for your kind words.