Credit Cards, Do You Really Need One?

Do you have a wallet full of credit cards?  If you did paid them off, would you get rid of the cards completely?  If you’re thinking that you can’t survive without a credit card, I have news for you…you can!

Prior to me purchasing my home back in 2004, I spent about two years correcting my credit. I paid off balances and closed accounts so that my credit rating could be sufficient enough for the approval of the home loan. At the time, I made a conscious decision to rid myself of all credit cards. I no longer wanted that financial burden in my life. Some thought it would be difficult to live day-to-day without at least one. But, it’s 2013 and I haven’t owned a credit card in approximately 10 years.

The way to live without owning a credit card is to have an established bank account and debit card and/or walk around with cash. The only difficulty with carrying cash is that: 1) you never know how much you need and what purchases you will be making, 2) you may be robbed, and 3) you will have to take extra precautions to safe guard (and properly transport) your money if you are making a large purchase (i.e. automobile, furniture, etc).  Having no credit card, will require some additional financial planning. But, living without a credit card is possible.

Lastly, if you do decide to live credit card free, the debit card is the next best thing. But, understand that you will have to check your account on a regular basis for any overdrafts.  Unlike a credit card, where you are using someone else’s money, with a debit card you are accessing funds you have in the bank. So, once your account run out of money, you’re out.