Having said that, more and more people are coming to realize that credit cards tend to do much more damage then good

when it comes to an individuals overall credit unless it’s tightly controlled and managed properly. People are beginning to trade in credit cards for: common sense.

First off, it is a fact that you can live without a credit card. If you wish to live a debt free life this is something that you are going to have to come to terms with. Most people are taught that credit cards will get them out of a jam, but the fact is that they are much better at putting people in a debt jam then getting them out of one.

If you want to live debt free you will first want to take each and every credit card you have and cancel the accounts. You will then want to cut up the cards and toss them out. All credit cards do is allow you to buy goods which you will have to pay for later. However, when it comes time to pay them later, you are not just paying for the goods. You are also paying interest rates, annual fees, and other “secret” fees that are generally tacked onto credit cards.

Now, just because you cut up these credit cards and cancelled the accounts, does not mean that you are free of the debt which they have incurred. You will still have to pay these off.

What you will want to do is stop and take inventory of your lifestyle and manner of living. To begin with make a list of your actual needs each month. This should consist of the necessities of living. Things such as rent or mortgage, utilities, and food. You should then map out in detail how much money you and/or your spouse bring in each month. When making your plan figure in how much you bring in combined after taxes. Then take all your necessity needs and deduct them from the total amount.

The money left over is the money that you will use to begin to pay off your debts. If you are struggling for cash you can begin by paying the monthly minimum on all outstanding debts that may have plagued your credit.

You should then take a percentage of your monies each week and place them in an account that gains interest over time to use for emergencies. This way you have money to fall back on if your monthly income suddenly changes due to missed work, sickness, or other unseen events.

Once you have removed the desire and/or need from credit cards from your life you will begin to discover exactly how much you can save without having to pay those companies for the “conveniences” that their services were said to provide.

See Also:

Bad Credit Repair Tutorial