It was a series of mistake which I did. Buying on credit things i knew i would be able to buy with cash after 5-15 days. When the money came, i had other plans and had nothing left to pay the credit card except minimum amount. First it was a mobile phone worth Rs. 14000(Noc2005), then jewellery for my wife on her birthday(Dec2005), then changed my mobile twice(used mobile sold at throwaway price)(Jan and Feb 2006), then to top it all went to a credit card funded vacation to Goa(March 2006). Each instance while planning I used to tell myself, once I get my next salary I will pay the credit card full amount. When the salary came, I had something other on my mind.
I accumulated 1.5 lac Indian rupee debt on my FOUR CREDIT CARDS I used to carry. I used to pay minimum amount an Credit Card and the method of calculation of interest on my balance could not be understood even by my Chartered Accountant. Then on a day on 1st June 2006 (Now I call it DEBT FREE DAY)at the spur of the moment I decided to sell shares of value enough to pay off my credit card debt....In the next 15 days..I was free of debt, my disposable income increased as I was not paying any Credit Card bill. I was able to fulfill small demands of my daughters e.g. buying a carom board (previously even a mention of Barbie doll used to get my scorn).
I feel light and made it a point to pay off all my credit card debt every 1st June(I did it this year) I pay off all my credit Card and get a zero credit bill. To tell the truth it is heartening feel.
Now I carry only ONE credit Card and don't use until in emergency.
I have started believing in the maxim CASH IS KING.