Do you love your credit cards? If you said yes, I get it. The temptation to swipe that card even if you don’t have the money can sometimes be too strong. This is especially true during the holiday season when you want to give gifts to your friends and loved ones. Credit card companies make it even harder to resist when they reward you with awesome rewards like travel miles or cash back.
With all of those pros, it’s hard to imagine not having a credit card. That said, having no (or at least fewer) credit cards is not a bad idea at all. Here are 5 reasons to cut up your credit card in case you are thinking about doing so.
- No interest payments. The worst thing about credit cards is the interest that comes along with it. Think about it. You are paying money to spend money. Does that seem like a smart financial decision?
- You can’t buy things you cannot afford. One major problem with using credit cards is that it is very tempting to buy something even if you can’t technically afford it. If you have a $100 item you are wanting to buy, it often “seems” cheaper to think about paying $25 per month instead of the $100 up front, even though it is far from it.
- You spend less. Research has shown that people who use credit cards instead of cash are willing to spend more money.
- You will stop going into debt. No more worrying about getting further and further into debt. You no longer have the option to.
- You will learn to think more about the things that you purchase and your budget in general. Having the peace of mind in knowing that you have less debt is worth the fear of cutting them up. Trust me.
Have you gone to the extreme of cutting up your cards? Do you regret it? We would love to hear about your experience.
