Baby steps are most important and this sounds like you're finally learning to walk!  We've been doing the same...the only CC we currently have is a Debit card (not really a CC).  It was hard at first because we used AE and charged EVERYTHING and paid it off monthly....now we are trying to pay and go.  We still have a lot of debt to pay off but we, like you, are working at it.

I have always used the credit card as cash, so no cutting up credit cards. It is about the budget and can you stay disciplined to do it. If not then i agree with Dave Ramsey's principles. It is truly about discipline and staying on your budget. If you stay on your budget credit cards can help you. I get money back and extra money by using them.

it all depends on the individual. so, good luck without them.

Dawn,

Another option if you don't want to cut up your credit cards is freeze them. What do I mean by "freeze them?" Simply get a plastic tupperware container that will hold at least 1-2 quarts of water (the more water the container holds the better), place all your credit cards into this container and place in the freezer.

The concept behind this method is that when you feel the urge to use your credit cards, you are simply going to have to wait until the block of ice surrounding the credit cards thaws out, or you can simply hack away at the block of ice. By the time you realize that you will be waiting for a while, you may not have the urge to use your credit cards anymore.

Give it a shot and let me if it works for you or not.

P.S. Good job on taking the first step in Debt Management.

Jose,

Jose, We tried that a few years ago, but found that the microwave and a little boiling water ruins our good intentions. This time we are working on it together, and we both really want to be debt free so we can enjoy our success and have more days to ourselves. Thanks for the pat on the back - one day at a time!

Dave Ramsey has it right...the best way to financial freedom is to not OWE anyone.  It's an easy slope to slip down again, so be vigilant and be "better than you deserve" too!

Ron, Thanks - that's why we cut 'em up. We had them paid off, but they crept up on us. We don't need them, so we kicked out the crutches.

My wallet closes now. :) Even with cash in it!

I'm with Susan. I pay for EVERYTHING by credit card, but I make sure I stay on budget so I can pay it off every month. Actually, by putting it all on the card this really helps with the budget. Not only do you have an accurate record of all your expenditures, you have the benefits - like airline tickets or cash back from the cards. I never carry more than five or ten dollars in cash. While this BLOWS my parents away, the truth is since I have to pull my credit card out - and know I have to pay it off at the end of the month - it makes me think about some of those silly expenditures I would make if I was carrying cash. Good luck to you. Debt free is stress free!

Dawn Congratulations on being free of your CCs.  I haven't had a credit card since I was 21 years old, and now at 29 I have even been fortunate enough to be able to purchase a couple of vehicles (nothing extravagant) without financing.  I can't begin to tell you how great it is to be able to say that.  The American dream of yesterday was home ownership; I think the American dream of today is being debt free.  Keep working toward that goal.  People without debt make great role models for their children & other loved ones.  What a great motivation, huh?

Robin, That is great for you! It didn't work for us, both being fully commission basis - one slow month or two, add in a couple of large needs for kids, cars or both, and bang! No catching up. Thanks for wishing us luck - we know debt-free = stress free (financially anyway - we still have kids!!).

Anthony, I know it is our American Dream to be debt-free. We want it for our kids so badly, so we hope our example helps them. What a nice post - thanks!

I never did the Dave Ramsey thing but I did go to Consumer Credit Counselling Services back in the mid/late 1980's.  I learned how to control my spending habits.  Because of it, I am proud to say (YES - I'm tooting my own horn), that I have no debt other than my mortgage. 

I use my AMX and Discover carsds for everything.  I pick up an extra few hundred dollars a year by earning cash back from them.  I also pay them off every month.

It was not easy to get where I am today.  It's not easy now to stay on track. 
To those of you that are trying to get debt-free....   YOU CAN DO IT!  And once you do, you'll feel such a sense of pride!  At least I do.  :-)

Nancy, What a great report that is!!! I know it won't be easy, but we know how much we want to achieve being debt free, so we will make it.

They say that the difference between the right way and going the wrong way is just turning around.

We have turned around in the right direction. Make it so, Number One!!

Dawn, Just this morning before reading this post I was thinking of how good it feels to probably be one of few Realtors who is paying down debt. I never would have got to this point in the first place if I didn't have a wedding to pay for last year in a changing market. Up until then, I was debt free. It's taken 9 months and maybe another 9 months to be almost there again. I never had debt be my motivating factor for working so hard and that kind of sucks. It's much nicer to have a goal of a major purchase to look forward to instead of writing a check to The Bank of America!