If you find yourself reaching for your credit card every time you want to make a purchase, you’re not alone. Many people have come to rely on their credit cards as their primary source of financing, to the point where credit card debt is crippling more people now than ever before.
Credit cards entice consumers to use them by offering incentives such as gift cards or rewards points when you make a purchase. This leads people to use their credit cards for every day expenses, and spending can quickly get out of hand. Eliminating credit cards from your life altogether may not be realistic, but you can reduce your dependency on them by following the tips outlined in this post. Read on to discover five tips for quitting credit cards before it’s too late.
Leave Home Without It
They used to say “Don’t leave home without it” but times have changed. People now see the real truth behind credit cards. If you want to quit your credit cards, don’t take your credit cards with you when you leave the house. Use your credit cards like your grandparents did – for emergencies only.
Avoid credit cards that offer incentives. This tip goes against what many say. There are those who will advise you to sign up for a rewards credit card. But these incentives exist simply to get people to charge more to their credit cards. When you charge purchases instead of paying for them with cash or your bank card, you tend to spend more and justify it by telling yourself that you’re getting a percentage of that purchase back in rewards.
Cut Up Some Of The Cards
Cut the number of credit cards you have in half. You will probably not even notice. After all, most people have way more credit cards than they need. The more credit cards you have the more trouble you can get yourself in to. You should eliminate your credit cards by half, keeping only the ones with the lowest interest rates. To do this, literally cut your credit cards up so you can’t use them anymore. But don’t cancel the cards though, as that often hurts your credit score.
Use Cash Instead
Use cash more often. Many people who rely on credit cards have quit using cash all together. Some advise to make all of your purchases on your credit card. That way, you can keep track of your expenses so it will help you budget. But it’s not wise because you are being charged interest. While the idea of living in a cashless society is great for some people, others need to use cash to cut themselves off from overspending. The great thing about cash is that once it’s gone, there isn’t anymore left and you can’t continue spending.
Shred Credit Card Offers
If you want to dig yourself out of a hole, you need to stop digging. Shred credit card offers without even looking at them. Don’t let incentives or introductory rates lure you in. It’s just a trap. If you don’t look at them, you won’t feel like you’re missing anything.