Credit cards are against my religion.
I shared this belief in a webinar on October 3rd. Only a handful of people have watched the video, which I understand; it was an hour long and you have better things to do.
But there are other reasons I am bringing this message to you in podcast form today: The Devil doesn’t want you to hear this: Credit cards are against my religion.
The Devil at work
There have been quite a few challenges trying to get this message to you:
- There were technical difficulties during original Webinar
- I’ve had some personal ones to overcome
- The delivery system you get this show on in iTunes was not working (with no reason why)
Considering iTunes is still the majority of the MPSOS audience, I take that as an assault on stopping me from giving you this week’s message. UPDATE: Thanks to Dave Jackson at the SchoolOfPodcasting.com for helping me get the feed fixed one day before this episode was released!
Are Credit Cards evil?
No, they are not evil. Electronic payment options are an advance in technology. Just as computers and eye glasses and even the fork was an advancement in technology, electronic payments are a technological progression.
This is not the reason I believe credit cards are against my religion.
The problem with Credit Cards
People “overexpend” themselves and now they are paying interest. For those who pay off each month there is still evidence that they will spend more than if they pay with cash.
There’s no visible boundary and the human condition is to get what we want instantly. This leads to impulse purchases and the “I want it now” syndrome.
There is less accountability when spouses have their own cards
Do you and your spouse have separate checking accounts? Yes? If so, is it the most efficient way to manage your household’s income? Making the claim that your separate account system is working just as well as a couple who has to share the same checking account with 2 debit cards and/or cash envelope system is lying to yourself.
This is also true of having “His and Hers” credit cards on different accounts.
Making the decision, and forcing yourselves to comply, to have one single place where all the money is divvied-up is more efficient because both partners have someone to hold themselves accountable to.
One person will feel they “deserve” something and spend more than they would otherwise. Then when the other finds out they feel justified to buy themselves something nice and the cycle continues.
Money fights and money problems are the number one cause of divorce
The Credit card topic is the one battlefield where spouses can rally together and easily conquer the enemy of overspending and debt. There they find the strength to fight the other money problems like huge student loan debts or medical bills. Avoiding the problems caused by credit cards is an easy battle to win when fighting 6-digit Sally Mae loans or escalating medical bills. Work together in one account with 2 debit cards for the good of your household.
If this has shined a light on why you and your spouse can’t seem to get ahead with your finances then good.
We are leading up to the reason why credit cards are against my religion.
Credit cards lead to false goals
I want you to answer this question out loud. If you are streaming the show via Stitcher in a coffee shop or driving to work or walking the dog, answer this question verbally: What are the benefits of using a credit card?
Did you say any of the following?
- You need a credit card for travel
- Possible discounts on purchases
- I get to use other people’s money (OPM)
- Debit cards aren’t safe
- I get rewards or cash back
[stextbox id=”clickarrow”]Click here to view Visa’s Zero Liability Policy for Debit Cards[/stextbox]
Which of these lead to accomplishing financial goals? None of them. The barely help you get ahead when accompanied by the “overexpending” that goes on while using credit cards.
Also, many of them are no longer true. Listen to the episode to understand why.
More profit for credit card companies increases credit card offers being sent to your neighbor’s mailbox. The result is more money being taken away from your community via Swipe Fees and interest charges. More importantly, you aren’t able to spend as much time (or money) building God’s kingdom.
Jesus died to pay my debts so why should I be indebted to someone else?
Are you beginning to see how credit cards are not good for anyone?
This your call to action: Stop using your credit cards for 3 months and use cash or Debit instead. Take money away from big banks that have no effect on your local economy but harm your neighbors.