These 4 Steps are how I slowly weened myself away from credit cards – forever.
UPDATE: It’s 2022 and I still don’t have any credit cards or open lines of credit. And it’s been easy!
The old rules about credit cards no longer exist
How long have we been hearing that debit cards are not as safe as credit cards?
How many years has Suze Orman scared us into keeping our credit cards so our credit won’t get “dinged”?
Why do we consistently hear the statement that you can’t rent a car without a credit card?
In a world where thing change so fast, why do we still cling to these ‘ol wives tales? The market has answered the call of debt-free enthusiasts like you and me with new services and products that allow us to live in today’s world without credit cards.
The new world no longer depends on credit cards – and neither should you
Numerous studies, and my past experiences, prove that we spend more money when using credit cards. Your brain registers a feeling of pain when paying with cash that doesn’t exist when using credit cards. This can be used to our advantage.
I have been living without credit cards for over 6 years. My family has made numerous trips to Florida and Wyoming, flying and renting cars all along the way, without being treated like a second-class citizen. Why would we be treated differently? Don’t they want our money?
Debit card transactions surpassed credit card use in 2009. Cash is still accepted as legal tender. Our currency even states “This note is legal tender for all debts, public and private”. We have options, we just need to pay attention.
How to get away from credit cards forever
Cutting up the cards and going cold turkey is the fastest way to get away from credit cards forever. It’s also difficult when we’ve been conditioned to use the rectangular piece of plastic “everywhere you want to be” – and some places you don’t.
This 4-step process is the same one I followed without even knowing it. I believe it to be the easiest way to get away from credit cards forever without even missing them.
Step 1 – Take the cards out of your wallet, put cash in your wallet. Use the envelope system to help stay within those categories where impulse spending can get away from you like food, clothing, and entertainment.
Step 2 – Delete credit card account numbers from all online accounts. Use your bank’s BillPay for online payments, Debit Card for other online purchases. You might also experience a wonderful side effect of purchasing more items from local vendors – which is good for your community.
Step 3 – Freeze your credit card accounts to any further charges. This also protects you from identity theft and having your accounts compromised. By now you will start to see how much you’ve haven’t been spending and how much more you can be saving. You will likely have your baby emergency fund completed or credit card debt paid off.
Step 4 – This takes a leap of faith but once you have completed Steps 1-3 you may find it easier than you ever thought possible: Cut up the stupid credit cards and close the accounts permanently. You have come to the realization that you haven’t been using the cards and you really don’t need them.
If you hate being credit-card free then check your mailbox
There will be no shortages of credit card offers coming to you with promises of greater rewards or lower interest rates. However, they can’t beat an interest rate of ZERO when you are paying for your items with cash, debit, or Bill Pay.
If you really hate being without a credit card then just mosey-on down to the local gas station or Target and they will issue you one faster than you can replace the gas cap on your SUV!
I believe you won’t want to take their advice – because now you have gotten away from credit cards forever!
Also on the show:
Holla From The Impala
Have you noticed it is easier to turn down a $300 item once than it is to say “No” to a $10 item every day? I did, and I talked about it in this episode of Holla From The Impala.
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