I got my first credit card just after I turned 18. I was a sophomore in college. My credit limit was a lowly $300, but I was so proud of myself.

I wanted to establish good credit. I logged every transaction, allocated the cash right away, and never spent money I didn’t have. I paid off my bills every month. Soon, my credit line was increasing.

I then got an offer for a “Gold Card”. It had a $5000 credit limit. Why did they give it to me, Mr. Barely Employed College Student? I didn’t care. I was just happy to have it.

For a broke college kid, a Gold Card is powerful and amazing. It made me feel like a million bucks. I didn’t think about how I was going to pay the bill, because nothing seemed like a whole lot of money. It was twenty bucks for pizza here, a few pitchers of beer there, some flowers there.. nothing major.

I went home for Christmas break and felt like the richest guy in town. Most of my friends were broke. But they didn’t have to worry. I would treat them. I bought lavish gifts. I took people out to eat. One year, I even decided to go on Spring Break.

Then I got the bill. Ouch! Things added up quickly. And I owed thousands.

I did my best, paying the minimum every month. I cut corners every way that I could. I started applying for other cards and transferred the balance amongst them. And every time I worked, I tried to put a little bit of money towards my balance.

But I didn’t want to stop spending either. How could I? I would only enjoy my young age once. So I tried to be creative.

The summer before my senior year, I stayed in my fraternity house to cut down on expenses and take two courses during the summer session. I wasn’t earning much money. In fact, I was so broke that when I wrote a check to pay the minimum of one credit card, I would overdraft my checking account. And that instantly charged money on another credit card that was set up to handle overdrafts. I was taking money off of one credit card and using to pay the other. If there was any left over cash, I would pilfer the account for spending money. Times were tight.

Believe it or not, there was a logic to my madness. I knew I was broke, but I also knew that I would, eventually, have plenty of money. I didn’t want to miss out on college life because I didn’t have money at that time. Although the interest rate wasn’t ideal, to me it was money well spent. I only had a few years. And if I didn’t go then, I would never get to go on Spring Break. I just didn’t want to have any regrets.

I was in one of those classic “keeping up with the Joneses” situations. I went to college with a lot of wealthy people. I had a full scholarship, but most of them had parents that funded everything. They all drove brand new vehicles like Jeep Grand Cherokees, Ford Explorers, and Acura Integras. They all had their parents’ credit cards and an unlimited supply of cash. I even know of a guy who wrote a check for $30,000 from his parents’ checking account to buy the BMW he wanted!

I was different. Because I was broke. When my mother asked how I was going to pay for college, my father said “He’ll find a way.”

I had a full tuition scholarship but needed to borrow money to pay for my living expenses. I had a few odd jobs, earning a few hundred dollars per month. But I usually spent it at bars, parties, and restaurants. After all, I was in college.

By the time I graduated from college in 1997, I had thousands in debt. Not including student loans, my credit card debts topped out at more than $10,000. I was paying a good chunk of each paycheck as minimums to my credit cards. With rent, a car payment, credit cards, and other bills, I barely had any money left. And I hated it.

I spent years managing and paying off my debt. I kept transferring balances and looking for zero-rate and low-rate cards. And I used every extra dollar I could scrounge up. Within about four years of graduation, I had my debt closed out.

Then I decided to get married, and had to pay for an engagement ring. Who came up with that two months pay rule? That almost completely refreshed my debt levels. It took me more time to get that paid.

In the nearly fifteen years since the experience started, I have come to many realizations and learned a great deal about myself. To learn more, check out my debt reduction tips.