Life Without Credit Cards?
We all strive to live a fulfilled and enjoyable life but when you are so inundated with stacks of bills to tackle each and every month you can feel like you’re stuck in a desert with no relief in sight.
If you have no money left at the end of the month to put toward your savings or a nice holiday because all you do is pay bill after bill then perhaps its time for a serious life change? We live in a culture of “buy it now” and rarely think about the “pain of tomorrow” from the decisions we make today. Credit cards, if used incorrectly, can be much more of a burden than the momentary satisfaction we get when we charge it to buy something we don’t really need. Not to mention the stress factor can really downgrade our quality of life.
OK, so, we agree that owing more than we can possibly fully pay off is a burden we could surely live without, right? It’s time we got rid of those credit cards that keep us shackled to our creditors until all debts are repaid.
Below you’ll find a few basic first steps we all can take to cut down the burden of debt in our lives. Mind you, these steps are physically easy to accomplish but mentally and emotionally for many it could be a challenge.
Step 1: Cut Up Your Credit Cards – Get out the scissors! Find ALL cards that are truly unnecessary and especially those with high interest and cut them all up. Keep one for emergencies only, and the rest get rid of. This includes store and petrol cards too. If you really want a credit card then consider a pre-paid card as you will have to fund these first so you are not being charged high-interest.
Step 2: Watch What You Spend – Note down all your expenses and quickly you’ll realise how much is spent on items that simply aren’t necessary. Remember, it’s not just the amount you charge on your card but an added 12-20% in interest or £20 or more per late fee. If you can’t afford to buy something in cash, simply don’t buy it until you are able. Makes sense right?
Step 3: Pay More Than The Minimum – Another great tip when attempting to repay your debts is to always repay more than the minimum monthly amount. This small monthly charge is designed to help you during months where you have difficulty making repayments. If you only pay the minimum each month you are not only prolonging your debt burden but you are paying additional cash toward your interest that could have been avoided.
Simply removing some of the tools that allow for impulsive spending, such as credit and store cards, can help you avoid further accumulation of debt. Easy wasn’t it? Now, the next task is to get yourself out of debt entirely and this takes planning.
With the right mindset and determination you can, and will, get out of debt. There are always alternatives such as debt management schemes if you simply cannot repay what you owe but if you can manage on your own, you’ll feel better and rest easier and build the self confidence needed to steer you clear from potential financial quicksand in the future.