subject: Can You Live Without Credit Cards? [print this page] Can You Live Without Credit Cards? Can You Live Without Credit Cards?
It may be difficult to comprehend how anyone can live without credit cards. Believe it or not, you will quickly realize true meaning of financial freedom once you decide not to rely on credit cards. The intent here is not to bash credit cards but merely press the issue that one does not have to pile up credit card debts. The use of credit cards is no harmful if you are responsible and you can handle payments. The use of credit cards is also good practice if you pay off entirely on due dates.
I must warn you here that not depending on credit cards will require a change in your mindset. Initially you will have to consolidate or get rid of your credit card debts. Once consolidation or payoff is achieved, you have managed your past debts. The next step is to refrain from using credit cards henceforth so that it will prevent you from racking up debts while staying within your means. Realize the new mindset- you are not sacrificing but you are prioritizing.
Avoid Monthly Payment Syndrome
We have been programmed to think in "monthly payment" mode. Let's say you like something at the store which costs $500. Most will not consider the cost $500 because that $500 will be charged to the credit. The chances are you will say that the purchase will only add extra $5 toward the credit card monthly payment. That is how over the time the credit card debts pile up. With newly adopted mindset, you will be thinking on basis of $500. If you do not have that $500, you will delay the purchase till you have $500. Being able to charge cards, you are succumbing to your impulsive purchases. By delaying purchase, ironically you may realize that you really did not need the item after all.
Track Your Spending
The recent economic downturn enforced the need to consolidate my credit card debts. I thought I had total credit card debt of $10000 or so. I was astonished that my total debts were well over $30000. With use of credit cards it is easy to accumulate debts without realizing total dimension of debts. With new mindset, you will not charge the purchase to the credit card (except for REAL emergency). You will purchase only when you have money. Eventually, you will feel relief because there is no accumulation of debts.
Enhance Your Earnings
I am sure you have realized that biggest difficulty in changing mindset is that there is just not enough money coming in based on your family's income. Surely, getting another job is out of question. Believe it or not, there are many opportunities online you can pursue which will get you that extra added income without leaving your home. There is practically no investment. It is possible that in time you will be add as much as $500 to $900 to your income portfolio.
By decreasing your credit card usage, tracking your spending and enhancing your earnings, you will now have a better chance than ever before of achieving your financial freedom. With a little work, your credit-free lifestyle will ensure you don't get caught in debt web. Ironically, you will find that having money saved when you need it is lot more gratifying than the false purchasing power of a credit card.
