I’ve closed the account!!!
“What account?” I hear you say.
The money sucking, temptation wielding, black hole that
is was my student account.
In my quest to be the controller of my finances, I am taking steps to eliminating the things that can cause one to falter. I had a student account which had gone from being useful during my student days with it’s 0% overdraft to being a debt enabler because of the interest it now charged. I had planned to have paid it all back by the time the 0% rate ended but unfortunately I didn’t. And when I did pay it back, I would use it again. Overdraft is tempting. Too tempting. My solution? Shut that sucker down!
I would leave it too long after getting back in credit to close it and by then all these thoughts of how I could use the money what come creeping back in and the account balance would once again dwindle down. This time though, I was determined for it not to happen so once I got it back up, I marched myself to the bank and closed the account.
Unfortunately it’s not just me – many people find themselves in this situation. The reason for this, is that we give the allure of what we could buy and do with the (borrowed) money now more importance than being in a financially stable position. Then we get into debt and wonder how we got here.
Interest is the cost of borrowing the money from the bank and the longer you borrow their money the more you pay. If you had to rent a car, you would limit the length of time you borrow it for so you wouldn’t have to pay too much. So why are we lackadaisical when it comes to, in essence, “renting” money.
You’re paying money to use money. Think on that! Imagine if every time you went to the shops someone told you that in order to use your credit card you have to pay a certain amount, you would think twice – but that is exactly what we do! Only, instead of paying upfront every time, it just gets added on at the end of the month in one big lump sum so we don’t notice it as much. I realise I had been giving the bank my hard-earned money for free!! Just because I wanted new shoes. “The shoes ain’t gonna pay me back nothin’!“
So that was it. No more. If you’re paying a debt back, once you’re in credit close the account and start afresh I say. It may be difficult and you will toy with the idea especially if you have been with a bank for a long time. Don’t get distracted! There are plenty more (and better) banks in the sea. The old account will hold too many memories and still allow you access too much borrowed money linking you back to your past bad habits. If you really really don’t want to close it however (maybe the perks are too good), ask your bank to remove the overdraft feature and take the overdraft away. Those bank charges you’ll now get if you go overdrawn will soon remind you of where you want to be: In credit and who you want to be: Financially free!
What are your debt- busting moves? Leave a comment I’d love to hear from you
Good thing of the day: Closed an account. Another step towards financial well-ness