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How to Survive Not Having a Credit Card

How to Survive Not Having a Credit Card

Majority of people agree that it may be practically impossible to survive without a credit card in this day of age. We no longer live in a society where cash is the only form of payment. In Canada, cash payments are becoming less common. You can’t easily make an online purchase or reserve a hotel room without a credit card.

While using a credit card by swiping it or typing it into a website has become prevalent, it doesn’t have to be a part of your daily routine of life. It’s possible to live without a credit card! Let’s find out how.

Using Credit Cards

Using Credit Cards

When you use a credit card, you usually end up spending much more than you intended to by the time the bill arrives.  A simple purchase such as  movies, meals, and/or  items can add up, along with interest charges that are also added, making your bill even more than what the original purchase price was.  This “purchase now and think about it later”, can put your monthly budget at risk.

How to Survive Not Having a Credit Card

Credit cards are definitely not the oxygen that aids your breathing, so you can survive without them. You need to understand that with credit cards, you can slip into debt or start living from paycheck to paycheck. It’s better to prepare so you don’t have to be at the mercy of lenders.

Budgeting and planning are essential.

Through good money management, you can live within your means and avoid using credit to pay for necessities. Budgeting for all of your expenses, even the occasional ones, is crucial. For instance, if your annual clothing budget is $600, you should save $50 each month to ensure that you have the funds available when you do. 

Make use of a debit card.

When compared to using cash or credit, using a debit card is just as simple. You can now use your debit card like a credit card, as long as the bank offers this, it’s an easy way to keep track of your spending because it appears on your monthly bank statement, and you don’t have to worry about accruing debt because you can only use the balance that is in the account, unless you have overdraft protection.

Living within your means.

Giving up your credit cards really just means taking a position and deciding that cash and debit cards are the only acceptable forms of payment. Once that is done, creating lasting behavior change is simply a matter of making rational decisions every day. This means you have to be disciplined to only get things you can afford and not get swayed by trends.

Consider obtaining a secured credit card

If you want to avoid the temptation to spend money you don’t have or if you don’t meet the requirements for a regular credit card, you might want to open a secured credit card. Similar to a regular credit card, a secured card operates by requiring a security deposit that is equal to your credit limit.

You must pay a monthly fee each time you use the card; it is not deducted from your deposit automatically. You can increase your credit history and score in this way. Additionally, if you don’t want to use your debit card to make hotel or car rental reservations, you can use a secured credit card. The sum that is charged as a hold against your account won’t be available to you, just like with other cards. However, if you only use the secured card for this purpose, there won’t be a problem. To pay for any deposits or holds, think about using a secured card with a sizable credit limit.

Do away with the card, not the credit.

Do away with the card, not the credit

If you choose to live a card-free life, think about cutting up (or hiding) your current cards without closing the accounts.  Your credit history is monitored by credit bureaus and used to determine your credit score or worthiness. A card is a part of your history as long as it is open. However, if you deactivate a card that you have faithfully and punctiliously paid off, that stellar record will vanish after ten years.

An active credit card that has been closed stays on your credit report for 10 years, according to Equifax.  You want to maintain a positive credit history on your report and be proud of your extensive credit history, which makes up 15% of your score.

Final Thoughts

If you’re having trouble keeping up with your monthly interest payments and would like some advice on how to lessen this burden, speak with a debt expert. Speak with us if you have too many credit card debts and need help. We can help you reduce your debt up to 80% and stop all interest immediately. EmpireOne Credit’s debt experts can assist you in eliminating your debts and join forces with you in regaining your financial independence by guiding you with a plan that is unique to your present situation. Book a free consultation with us right away! You owe it to yourself to be debt free.

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