Every month, we receive our credit card statements via email or post. Every month, some will open the statements immediately, and some will either tear them up and get rid of them or leave them in the far reaches of the room,invisible to the naked eye.
This age-old problem is the one we find ourselves struggling with daily. There is so much information out there that we can locate. However, the information is not particularly consistent or helpful.
What remains steadfast is that, if you have debt, whether we cut up the cards or not, that debt remains until you are paid up. Out of sight, out of mind? Not so much. Rest assured that the credit card companies will come calling.
The decision will ultimately be yours.
Below are a few reasons why your plastic should not meet a hasty death:
Those Cards Are Not the Problem Here
There is a mindset that says we NEED a credit card in case of emergencies. It’s safer to buy airline tickets because of the built-in travel insurance, and if anything else transpires, we will always have back up. That is what we tell ourselves, and of course,we can be trusted to tell the truth at all times. Most people get by without a credit card, but the allure of a credit card is insanely tempting. Nowadays, you can apply for a credit card through your banking application on your phone and your card with be couriered to you. Even better!!
If you are privileged enough to have your cards paid, then congratulations to you. However, there is a fair number that does not fall into that category. Deep down, we know who is to blame, but first,let’s rail against the credit card companies.
Draw up a Budget
It is recommended that every one of us follows this rule. The picture from the budget will indicate with clarity how your finances stand. Certainly, this will all depend on how serious you are about clearing your debt, especially if you have more than one credit card. It will be incredibly challenging, having to curb spending, and will again come down to you and the relationship that you have with money. The significant advantage of a budget is that it clarifies the situation,and you realize the chaos that you have created for yourself and have a tool to deal with the debt. With a budget, you have a fighting chance of slowing the spending, tracking your progress, and, most importantly, not falling into recurring patterns.
Should you be late with a payment, Suze Orman quotes a few essential facts and figures to which we need to pay serious attention.
Ultimately, it’s your relationship with money that needs to be addressed. Nobody is forcing you to spend without consequence, and having a credit card can be a heady experience. If you have additional credit cards, you might need to devise a plan where you whittle them all down to ONLY one—thereby reducing the interest on these cards quite significantly.
Cash Versus Cards
Being able to swipe your card is always so much easier and more efficient.
There is a belief that cash is king. Many transactions are purely cash-based, and that’s fair. Cash is tried and tested. This money can come in the shape of hard cash or an ATM card. Should your ATM card be stolen, without credit, there is no backup, which could leave you in a tight spot.
Being presented with a ‘cash only’ option, I might think twice about entering a shop or restaurant. It can be a bit of a annoyance to find an ATM to draw cash, and for the most part, it’s not a ‘healthy’ option to carry cash. The temptation is a dangerous thing. Most companies are looking for credit cards to be held as collateral. For example, a rental company looks for credit card details that they can keep on file in the improbable event of something happening to the car.
Should you purchase airline tickets, travel insurance will accompany the purchase if a credit card is used. Should you wish to book accommodation, most of the venues choose credit cards with which to make the reservations.In the event of fraudulent transactions made on the credit card, pick up the phone, call the bank or the credit card company, and the affected card would be cancelled and replaced.
Everything is incredibly easy nowadays, so if a credit card is stolen, defrauded, or otherwise, it can all be resolved either tele phonically or online. Which too, makes the idea of a credit card even more exciting.This convenience is a glaring indication of how technology has progressed.
The Perks of a Credit Card
By cutting up all of your plastic, you can bid your perks farewell.
Banks/credit card companies have marketing strategies in play that affect how and where you shop. If you shop at a particular place defined by these companies, points will be earned to be used at a later stage.
All of this sounds amazing, but this is where you decide where the line is, and it is a great test as to how strong your resolve is.
Will This Affect Your Credit Score?
Some say it will and those that say no.
You will need to do your research here and make your own decision. You might not require credit, but a good credit score will always be a necessity unless you are wealthy enough to write a cheque.
In my mind, we cannot be without a credit score at all in our current times, and it is to be protected at all costs. Contact us 844-829-2292