Stop Using Credit Cards - Lawrence Dunn
Credit cards have their place in this world for sure, but for many of us, they have become a major challenge to our financial well-being. Without financial well-being, it's easy to worry constantly about how you will pay for things. Currently the average amount owed by people with credit cards in the US is around eight thousand dollars.
Can you stop using your credit cards? There may be some recurring bills you have set up on a credit card and if you are able to pay that total balance off every month, then that's something you might want to leave that way for the convenience.
But it's the convenience of pulling out the plastic on impulse that has led to so much debt. Deficit spending is what it's called when you spend money that you don't have. The US government has been a master at it for decades, spending more than the country's income. They at least can print more money and allow inflation, but that's not an option for you and me.
Sure, it's the American way to use credit cards for deficit spending, but it's not a smart way.
The thing is, the credit card companies are plenty smart. They understand the psychology behind spending with plastic. It's just so easy for most of us to pull the credit card out of a wallet. Then an extra ten bucks, or an extra thirty bucks, or more, doesn't seem like a big deal at the moment. If you could only pay with cash that you had in your pocket, if you couldn't even write a check, then you would think more seriously about what you were doing.
Even if you are earning a very nice income at work, it can be hard to actually get out of credit card debt. There are always so many ways to use that paycheck. If you are like most of us, however much you earn, your expenses rise to the same level!
So what can you do? Many people advocate cutting your credit cards in half. That is one way to stop using them, certainly, but perhaps a better way is to keep them for genuine emergencies. Stop carrying them in your wallet, or only carry one with you if you can do that without using it.
Those cards that you have can be put in storage someplace where you will remember where they are, but choose a place that is inconvenient. Some people put them in a plastic bag, fill the bag with water, and put the whole thing in an obscure corner of their freezer. That makes it way less convenient to use!
So the first thing you must do is stop using your cards. As for your existing credit card debt, start paying it off every month. You may think you can't possibly afford to do this, but you can afford one dollar extra. Then the next month, try to put an extra ten dollars, and keeping increasing the amount till it hurts. It should hurt or you are not paying enough back! But it will feel great when you are out of debt. And that magical day will only come if you follow these steps, or your own variations on them. If you need it, by all means get professional help to.
Can you stop using your credit cards? There may be some recurring bills you have set up on a credit card and if you are able to pay that total balance off every month, then that's something you might want to leave that way for the convenience.
But it's the convenience of pulling out the plastic on impulse that has led to so much debt. Deficit spending is what it's called when you spend money that you don't have. The US government has been a master at it for decades, spending more than the country's income. They at least can print more money and allow inflation, but that's not an option for you and me.
Sure, it's the American way to use credit cards for deficit spending, but it's not a smart way.
The thing is, the credit card companies are plenty smart. They understand the psychology behind spending with plastic. It's just so easy for most of us to pull the credit card out of a wallet. Then an extra ten bucks, or an extra thirty bucks, or more, doesn't seem like a big deal at the moment. If you could only pay with cash that you had in your pocket, if you couldn't even write a check, then you would think more seriously about what you were doing.
Even if you are earning a very nice income at work, it can be hard to actually get out of credit card debt. There are always so many ways to use that paycheck. If you are like most of us, however much you earn, your expenses rise to the same level!
So what can you do? Many people advocate cutting your credit cards in half. That is one way to stop using them, certainly, but perhaps a better way is to keep them for genuine emergencies. Stop carrying them in your wallet, or only carry one with you if you can do that without using it.
Those cards that you have can be put in storage someplace where you will remember where they are, but choose a place that is inconvenient. Some people put them in a plastic bag, fill the bag with water, and put the whole thing in an obscure corner of their freezer. That makes it way less convenient to use!
So the first thing you must do is stop using your cards. As for your existing credit card debt, start paying it off every month. You may think you can't possibly afford to do this, but you can afford one dollar extra. Then the next month, try to put an extra ten dollars, and keeping increasing the amount till it hurts. It should hurt or you are not paying enough back! But it will feel great when you are out of debt. And that magical day will only come if you follow these steps, or your own variations on them. If you need it, by all means get professional help to.
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