Are Your Credit Cards Destroying You?

If you misuse your credit cards you could be setting yourself up for financial ruin. Do you find that rationalizing your spending is easier to do than facing the consequences when your credit cards come due? Do you find it hard to change the bad habit of racking up your credit card debt? If you want to take control of your finances and stop piling on credit card debt you may need to go “cold-turkey”.

Stop Credit Cards From Destroying You

Can You Say Bye-Bye?

If you cannot resist the temptation to whip out your credit cards for every purchase you make, large or small, you need to say bye-bye to your credit cards. Cut up your credit cards; make all purchases in cash. Credit cards serve a purpose; for large purchase that cannot be made with cash and for emergencies. They are abused when you use them for your daily living expenses.

Can You Say Frugal?

Make frugality your motto. Living frugally means living within your means. Can you do that? If you carry balances on your credit cards you are living beyond your means. If you live from pay check to pay check you are also living beyond your means. If you spend only what you earn you are living within your means.

Where Is Your Money Going?

It’s been proven that if you pay with cash you will spend less money. If you rely on credit cards you will find yourself wasting money on impulse buys. When you pay with cash you will also find yourself focusing more on the cost of the item.

Cash Does Have It’s Problems

Credit cards and cashNeed More Of It

When you change your buying patterns to pay more with cash you will have to carry lots of cash unless you use a debit card.

Less Protection

Debit cards offer less protection than credit cards. The Fair Credit Bill Act will cover credit cards with fraudulent activity but not debit cards.

Not Acceptable

Some businesses will not accept cash. For example, hotel and rental car reservations always require credit cards.

No History

You will have a harder time building up a credit history if you always pay with cash. Mortgage and car loan companies use credit as a means of monitoring your ability to repay their loans. Good credit scores qualify for the best rates; without a credit history you may not qualify for the best interest rates.

Don’t let your credit cards take over your life. Living frugally does not mean you have to miss the best parts of life, it just means you have to plan better and manage your money better. You can do it if you take the time to understand your options and the alternatives.