I have credit cards. There where two reasons I’ve used a credit card since after high school. One, with online statements you can download it was the easiest way to track my finances. Two, the cards I have give cash back, about 5% on groceries and gas. I think I’ve made a couple hundred dollars in the past few years. The number one rule in having a credit card is: Don’t spend what you don’t have, and pay off your balance every month (okay that’s sort of two rules).
Now I know that credit cards are a horrible thing for most people, that millions are in debt on their credit cards and spend money they don’t have. The credit card companies always seem to win, though I’m convinced I’ve come out on top with my cards.
But, a good friend pointed out to me that Credit Card companies probably love people like me, cause I tell others about how I use a credit card and it’s a good thing, luring them into a life in debt. I also read somewhere that you spend 12% more with a credit card then you would with cash (I don’t know if that’ s true for me, but those are the stats).
All this to say, I’ve officially zeroed out any balance I had on our credit cards and I will no longer be using them. Here are some of the reasons I think this is a good thing.
1. I want to be a good example to others in being a wise steward of my finances, and for most that means NO credit cards.
2. It’s one less payment to have to do each month. And my wife and I will both be happy about that.
3. If it’s true we spend 12% with a credit card then with cash, then my bank accounts gonna be 12% fatter. nice.
4. I can use my bank debit card for any online transactions or other things I have to have a card for.
5. I’ll quit stealing from The Man (it’s not nice to steal, even if it’s from The Man).
I’d like to encourage others to do the same. Don’t need to cancel your cards. Just pay them off and put them away. Let’s try it for about 3-4 months and then we can re-evaluate.