Friday, August 28, 2009

Living Without Credit Cards

Credit cards have taken over a lot of lives in the past few years because people think, "Great, a free loan!" The problem with that is that they don't keep track of how much they're spending and how quickly they'll be able to pay it back. There's a reason why credit card companies are so successful. They are great to have, but when people misuse them, things go downhill and they make tons of cash because so many people that own them aren't able to pay them back right away. The interet just keeps rising and rising. People that get into credit card debt are usually people who don't have a lot of money in the first place because if they did, they probably wouldn't be using them. By following these steps, you will affectively eliminate the need for credit cards in your household because you will have paid off your debt and saved enough money to buy what you need or want.

The first step to living without credit cards is to cut them up. Cut every single one up and cancel them if need be. The reason you want to do this is because you won't pressure yourself to use it. There will be no pressure if there's nothing there besides cash, a debit card or a check. You're already living life without credit cards and are on your way to being debt free.

Next, you want to learn where to put your money and how much to save so you can follow your budget. You should sit down once a month and plan your budget. That includes putting away the needed amount of cash for heat, electrcity, groceries, clothes etc. The money that you would be spending on your credit card bills, put in the bank once you've paid your bebt off. You could use a debit card, but if there's a charge, you could just subtract an appropriate amount of cash to spend on groceries, clothes or gas.

When the monthly bill comes for your credit cards, make sure to never pay the minimum balance due on your bill. The minimum balance is what your credit card company wants you to pay so they make more money off of you. Pay as much over the minimum balance due to pay off your debts quicker.

If you're trying to completely eliminate the need for credit cards in your life, you need to get rid of them. Get them out of your house so you can live without them. Remember, there's a reason why the companies are so successful. Learn how to budget properly and save the money that you would be spending on your credit card. Check into getting a debit card if it's free with your bank. Another important step is to make sure you pay more than your minimum balance due so you can easily pay off your bills and not get yourself stuck with climbing interest payments.

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