How to get Rid of your Credit Card Dependence

If you cannot imagine day to day life without depending on plastic then it signifies you are too dependant on credit cards and really ought to break free. Whilst everyone benefits from having a good credit score it can easily be maintained by astute use of one credit card. This one card should reward you for using it and not cost you a cent.

If your wallet is bulging with credit cards then most likely you have got into the habit of rewarding your card issuer with helpful interest payments to improve their profitability, and enjoy a taste of impulse spending. You should aim to cut your cards up after cancelling them. Retain one for its benefits and insurance cover, and one to represent the length of your credit history. Providing it does not carry fees keep hold of the oldest card.

Another pressing concern which you should be aware of if you have a large plastic holiding is that it is most likely that new charges will be gradually introduced. You could suddenly find yourself facing an annual fee where none existed before. Financial institutions are testing ways to charge existing customers with new fees to determine if it is feasible to introduce them without losing their customer data base. Some lenders are already testing out new annual fees and fees for inactive cards. There is more information here about new charges:

If you are in the position of having excellent credit and hold a card which gives you a good cash back each time you spend, it is wise practice to use it for all your monthly bills to effectively receive a reduction. If you do not qualify for a cash back card which would make a discernible difference then keep your one card just for emergency use.

Using a debit card is just the same as using cash, and is a convenient method for those who do not like to carry cash on their person. It is absurd the way that cash has gone out of fashion in America as it is easy to control, and you can’t spend it if you don’t have it. Those who use cash instead of credit rarely face debt problems as cannot overspend. As most people receive their income via their banks then obtaining actual cash can sometimes be a nuisance but prudent use of debit cards is just as viable.

Often cash can facilitate a discount if you shop at non chain stores. Independent retailers can afford to knock a few dollars off your immediate purchase as your items won’t cost them anything in merchant credit fees if you use cash. Cash can be used as a simple bartering tool as it has for centuries.

Using cash frees you from the annoyance of having to open those regular credit card bills and trying to remember what the charges were for, as often they will be for things which had no value to you as bought on plastic. When you save up to buy something, amassing interest along the way, your purchases will be more thought through and impulse buys won’t sit at the back of the cupboard unused.

If you want to stop your dependence on credit cards and take better control of your finances there are many benefits to living plastic free. It is well worth making the cut with a sharp pair of scissors.