Meet the 40-Year-Old Who Cleared $20,000 in Credit Card Debt and Then Stopped Card Usage

Many individuals have been re-evaluating their relationship with credit cards after experiencing debt burdens. Availing of a credit card is pretty easy but paying off the bills becomes a financial burden, and sometimes pushes you into unwanted debts. Many struggle with paying the bills due to soaring interest rates and this causes a lot of undue stress as everyone has a family to run. This has eventually resulted in many people getting away from using credit cards as they want to regain control of their money and stop getting into even more debt. People have realized how risky these credit cards are and relying totally on these tech-savvy payments can pose a greater threat to your finances. Something similar happened with a woman named Shonnita Leslie who struggled with her student loan debts and paid off her credit card loans worth $20,000 six years ago, per CNBC Make It. 

The starry world of credit cards

Leslie remembers her mom being adamant about giving credit card access and shared with CNBC saying, "My mom did a good job of making that stick at least until I graduated college. Then I kind of went crazy." When Leslie was growing up, her mom didn't like the concept of kids having credit cards. Hence, Shonnita did a lot of summer jobs as her mother introduced her to the importance of savings, she was able to save and pay for things she wanted. But then as she entered college, she got hands on her first credit card after she completed her Master's degree in 2009. At first, she used it to purchase work clothes as not much money was left after paying for rent and other necessities.

Grappling credit card debt

But then as she started using credit cards more, she used them for more expensive things like plane tickets to visit friends. She remembers grappling with debt and says, "I didn’t have a real sense of what I was doing or what I was getting myself into". She also collected credit cards from stores but with lower spending limits and higher interest rates. She did not realize what she was doing with the cards and didn't always pay off her full balance each month. As a result, her debt started to grow with added interest and in 2012, she owed around $20,000.

Her mom later introduced and suggested her GreenPath, a financial wellness and debt counseling service. They accumulated all her credit card debt into one single monthly payment of $250 at lower interest rates and payments.

Stress-free life without credit cards

Shonnita after cutting down on her credit card debt shares, "I needed to cut them up so that I didn’t continue to use them and could just pay down what I owe. I just felt relieved when I was done." According to the plan, she had to stop using her credit cards until her debt wasn't cleared and by 2018, she paid off her entire credit card debt. Getting out of debt made her realize she doesn't want to use credit cards anymore as she doesn't miss having one. She later mentions, "I’m not a points chaser. No one’s getting rich off of frequent flyer miles or other rewards."

Her credit score has seriously declined but she thinks that it can be improved. She is now learning some financial concepts and handling how she pays for her necessary expenses including rent and others. She urges people to ask for help whenever needed and says, "It’s nothing to be ashamed of. The economy is run on debt, and we’re encouraged to have it."