I have absolutely no idea what my reaction should be right now – I mean, I’m thrilled that I’ve DESTROYED my credit card debt – which was in the $40,000 range just a few short years ago. But I’m not out of debt debt just yet (rhyme not intended), as I have just graduated from my MBA program and have a ton of student loan debt coming my way.

Let’s be honest though, if you’re going to have any type of debt – student loan debt isn’t a bad one to have. First, I have the degree. Second, it’s a very low interest rate – which will allow me to throw as much extra money as possible towards the principal.

As soon as I have all details for the new student debt – yes, I’m still paying off my undergrad debt as well – I’ll add it to the tally and we’ll start chopping that down as well.

For now though, I’ve got a lot going on which will definitely change my situation (updates to come) and I need to start determining what my priorities/goals are regarding wealth creation (e.g. house, stocks, retirement accounts, etc.).

I’ve been a prisoner of my credit card debt for WAY to long to just sit back and not make up for lost time.

So, if you’re reading this, it’s a pretty good bet that you’ve heard that you should pay more than the minimum monthly balance on your credit card debt.

Well, what you may not realize is that advise is now more relevant than ever. The credit card reforms that went into play this year make it possible for those of us with credit card debt to save a lot of money and hopefully get out of debt faster – if we abide by the rule and pay more than the minimum. In fact – the Center for Responsible Lending says that the reform will save about $2 for every dollar you pay above the minimum. Pretty sweet, huh?

I just cancelled my Bank of America credit card today – I actually had two with BOA, but they cancelled one due to inactivity towards the end of last year. I must have missed notification – if they even need to send it. So, I cancelled the remaining card.

I hadn’t carried a balance on the cards for probably over a year now, but didn’t want to cancel them in case the reduction in available credit would impact my overall credit score and therefore my rates on existing balances.

But with the new credit card rules coming into effect and the current state of lending – I feel that now is as good a time as ever to cancel my zero balances. I’m making good progress in paying down debt and if there are any repercussions to canceling cards – I’m betting that it will help in the long run if I just start making adjustments now.

One thing I do know so far is that I’m thrilled to no longer have any ties to Bank of America.

The Daily Show took a turn trying to explain the effect that the new credit card rules will have. Funny and frightening at the same time…

This past weekend I watched the documentary “Maxed Out”  (trailer here)based off the book of the same name by James Scurlock. I definitely recommend this movie to those, like me, trying to get out of credit card debt and also to parents of kids heading off to college (where it seems to all begin).

So I have 10 credit cards right now.  But thankfully, not all of them have balances on them.  In fact, four of my credit cards now have zero balances, but I have not closed them due to fears that it will knock my debt to credit ratio out of whack (more than it already is) and hurt me more than help me.

But in reviewing this old consumerist post, I’m wondering if I should cancel the zero’d out cards now and continue to do so as I whittle my balances down or if I should just wait until I’m completely debt free and have a little card canceling party?  It would be really fun to call these guys up sooner rather than later to say thanks, but no thanks.  But my sense is that I should wait.

I’d really be interested to know what you guys think and why?  Have any of you experienced adverse effects of closing out your cards while still paying down credit card debt?