Shonnita Leslie, a 40-year-old millennial, shared her journey of paying off a substantial credit card debt and then deciding to cut up her cards, a decision she has stuck to for six years.

What Happened: Leslie’s mother instilled in her a deep aversion to credit cards. Despite receiving offers from credit card companies before she turned 18, she refrained from signing up, working during college breaks to cover her expenses. Leslie shared her journey in a recent interview with CNBC Make It

After completing her master’s degree in 2009, Leslie got her first credit card. Initially, she used it for work clothes and then for more expensive purchases, leading to a debt of around $20,000 by 2012. Unemployed at the time, Leslie found it challenging to manage her debt and other expenses.

"I didn't have a real sense of what I was doing or what I was getting myself into," she says.

Following her mother’s advice, Leslie sought help from GreenPath, a financial wellness and debt counseling service. The company consolidated her debt, negotiated lower interest rates, and set up a monthly payment plan. As part of the agreement, Leslie stopped using her credit cards. By 2018, she had cleared her debt.

"I needed to cut them up so that I didn't continue to use them and could just pay down what I owe," she says. "I just felt relieved when I was done."

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Leslie, who is now focusing on paying off her student loan debt, has no plans to accumulate credit card debt again. Despite the potential benefits of responsible credit card use, she feels no regret about not having one.

Why It Matters: American financial guru Dave Ramsey claims that 88% of people taking out debt consolidation loans end up seeing that debt grow back. “We know from the debt consolidation industry that 88% of you, that’s nine out of 10 that take out a debt consolidation loan, your debt grows back,” according to Ramsey.

Meanwhile, China is also taking stringent measures against debt defaulters, including restrictions on high-speed rail travel and luxury accommodations, as part of a broader crackdown on unpaid bills. The government’s delinquency blacklist has grown by nearly 50% since late 2019, now encompassing 8.3 million individuals.

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