There are plenty of good reasons to stop using credit cards but many people don’t really take them into consideration. I would like to share with you my reasons to quit using credit cards and raise that awareness level! Credit cards can be great tools when they are used correctly, but it’s very easy to abuse a credit card and damage your credit score while putting yourself further into debt. I don’t want to bash credit cards today, I just want to teach responsibility and show you how to be wise with your money. So read on for 9 smart reasons to stop using credit cards!
1. Less Spending
It’s no secret that when you have a credit card you are more likely to overspend your budget. Put a stop to this by not using your card! When you spend cash, it’s much harder to watch it leave your wallet than when you swipe a card, so you really put some thought into your purchases. That’s one great reason to stop using credit cards!
2. Easier Budgeting
One great reason to stop using credit cards is for easier budgeting. I’m really big on budgeting, and keeping track of your money flow. I can assure you that it’s very hard to budget when you have credit cards! Keeping track of cash is just much easier and cash makes balancing a budget simpler. A good rule of thumb is to withdraw a set amount of cash from your bank each week and use that amount as your budget.
3. More Privacy
In a world where everything can be tracked via credit card usage, it’s safe to say you don’t have much privacy when you use a credit card. Cash is much more low profile and helps to preserve your privacy. Credit card statements also point out when and where your card was used, so if you have a nosy roommate, or if by chance your mail gets lost, your privacy is certainly at risk! What better reason to stop using credit cards than that?
4. Less Debt
Having less debt is enough of a reason for me to stop using a credit card! When you can cut out your credit card payments, you will have more money to put toward things that you want or need. Debt is usually one of the main culprits when it comes to having little to no extra money to spend. When you have so many payments to keep up with, how can you ever have any money for anything else?
5. Decreased Possibility of Identity Theft
Stolen identity is not a pleasant thought, but it does happen. If you stop using credit cards, and have a cash only policy, then you lower your risk for identity theft by more than 50%! People who steal identities can use your credit history and track you via your credit card. And if they get their hands on your wallet only to find that you have no credit cards in your possession, you are only out a few dollars in cash rather than your identity, plus who knows how much money. That’s a great reason to stop using cards!
6. Slimmer Chance of Impulse Buying
I’ve discovered over the years that people who have credit cards have more of a tendency to impulse buy than people who don’t have credit cards. If you’re trying to stop impulse buying, or would like to cut back on your spending, then stop using credit cards! Leave them at home in a safe place, and carry only cash. That’s a much better policy for you AND your bank account.
7. No More Late Fees
I can’t think of too many things that are more annoying than late fees. If your bank account is just a little lean until payday, and your payments are a bit short, you will have to pay extra to make up for it. It would be better if you didn’t have a payment or a late fee, right? So there’s the perfect reason to stop using credit cards!
8. Card Rewards Aren’t Beneficial
One of the main reasons that people continue to use credit cards when they are not completely necessary is for the rewards many companies offer. The downside to this though, is that lately, credit card companies have been reducing and cutting back on their rewards programs. You may not be able to earn as many points, or the frequent flier miles you can acquire may go unused. Before you jump at the chance to use your credit card simply for the benefits, stop and think about it. Will you really use the offered benefits? Are the benefits enough to make it worth it? Are you willing to go into debt simply for a few rewards? If you can answer any of these questions with a no, then reconsider using your card.
9. Financial Freedom
My final reason to stop using credit cards is simple: it’s financial freedom. When you can finally rid yourself of being dependent on credit cards, and be in complete control of your money and your spending habits, you will realize how liberating it feels. It’s easier to keep your life in order when your finances are in order and a stack of bills doesn’t obligate you. Debt can really drag you down, so choose financial freedom over credit cards!
As mentioned before, I’m not against credit cards, and I do consider them to be a great financial tool when used properly. The trick to using credit cards is to wean yourself off of them and refrain from being dependent on them. When credit cards are used only for emergency, or necessity, you can have financial freedom. Now that’s a reason to stop using credit cards! Be responsible with your money and stop using credit cards for every thing you need. Do you have any tips or reasons to stop using credit cards?
Top Image Source: 1photos.com