Taran said:
@Kyle
Technically sure. But you don’t have the financial stress that comes with it, and you don’t have interest accruing debt.
100%!
Congrats! You just power through, create a savings account, and don’t repeat the debt cycle again. If you can’t pay in full when the bill comes, then you can’t afford it! Good luck!
Not broke; you just never experienced freedom.
Nyx said:
Not broke; you just never experienced freedom.
This is exactly how I feel, haha. Those interest payments were killing me.
How did you manage to pay all that?
Congrats! Use this as a reminder to your future self: you are not broke. You’ve been broke, probably for a long while. Just because you didn’t feel broke before didn’t change that fact. And that’s dangerous. So don’t let it happen again.
In reality, you already were broke. You owed the money; you just moved your liquidity to the debt. Now moving forward, your money in your account is really yours.
That broke feeling is what keeps me from overspending.
Congrats! That’s a huge accomplishment!
I can relate. I got careless with three credit cards and was in so much debt from 2018 to 2/2024. At the end of it, I was so broke. But one thing to remember is that this feeling is only temporary. After getting my first paycheck post-debt, I was able to save so much and set aside money for important things. Not gonna lie, I had to live off rice and hotdogs for 2-3 weeks, but that’s the price I’d rather pay than the debt I had.
No. You got it all wrong. You’re starting to feel rich! It’s a mindset shift.
This is exactly the trap of credit cards and consumer debt. You can spend money to feel rich but actually be broke, or you can be rich (like you just did to pay down your debt) but feel broke.
Be proud of yourself for not falling into their trap.
You were broke before; it just didn’t feel like it. That’s more dangerous than just being broke. Congrats on digging yourself out of that hole!
It builds back quickly with continued discipline and without the drag of interest.
Congrats! I’ve been free of consumer debt for many years now, and it’s such a relief not having to waste money on interest payments and debt servicing. It made it much easier to shake that broke feeling, knowing that I can now redirect those funds toward savings and investments, rebuilding my bank account much faster than before.
Calculate how much you were previously paying in interest per month and set that amount aside monthly in your rainy day/emergency fund until you hit a comfortable number, based on your lifestyle (kids, mortgage payment, car payment, etc.). Ideally, six months of expenses, but a bare minimum of $1000.
Unless your debt is interest-free, being able to pay off debt is always a good thing.
This is the turning point where you will start growing that balance or go back into debt. Manage it right, and you will be just fine.
Congrats! I recommend you start to budget the money you have coming in so that you don’t go back into debt. I recommend the YNAB app. This is also a great time to start investing if you haven’t already.
@Brook
Thank you so much! I appreciate it. I’m already working on it; I don’t ever want to fall into that trap again!
Congrats! 
In the short term, yes, you don’t have that cash flow. It’s temporary, though, since it will be better in the long term as you can focus more on saving money now. No financial stress or accruing debt.
The only scenario that I let a balance roll over is when I have 0% APR for X months. However, I also plan it so I can actually pay it off before that period ends. It’s a terrible idea to do this if you don’t have a plan to pay it off before that time frame ends.