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Cut Up Those Credit Cards!
By Lindsey Meier
Even for someone trying to free herself from the shackles of debt, saying no to credit cards is a trial. And with all those cute leopard print and great artist theme credit card offers arriving in the mail each week, a girl can hardly blame herself. A credit card is like instant money that matches your wardrobe. Yet let's not forget that there is a fat pile of matching bills waiting at home. You'd love to shred those bills, and you can, but first you've got to cut the cards.
Discover If You Really Need Credit
But wait a minute, first let's discover whether or not you really need those credit cards. They do make shopping easier. You don't have to count change at the register, and you can shop on-line and over the phone with them. You even get cash back and free flights when you spend enough! Still, a debit card can do the same for you, and you won't get hit with a monster-sized late fee or even a bill. So what are the real reasons for owning credit cards? Most people use credit cards either to build credit, to increase spending money, and to use for emergencies.
Building credit means that you get a credit account, use it, and then pay it off. If you want to build credit so that you can get a loan for a home or car, or other large loans, using credit cards to do so works best if you pay them off and keep them that way. So if you need to build credit, use the card for a purchase that you already have the funds for, go home and pay the creditor, and then cut that card to bits! Slice it up and hot glue it into a cute little house to go under a bonsai tree, and now you're “building credit.” Don't close the account, though, or it doesn't help your credit report. But remember, if you are trying to avoid debt, you might not need to build credit at all.
If you to want have a credit card for back-up in case of an emergency, then don't use it for shoe shopping. Reserve it for a real emergency, like for when your car breaks down and you need it towed today but won't get paid until tomorrow. A credit card can get you through such emergencies without an overdraft on your checking account and without negative side effects if you pay the full bill as soon as possible. However, so can a savings account.
The only case in which you can't spare your credit cards is when you are regularly spending money faster than you bring it in. If you are, then you need to slow down the spending. Using credit as extra spending money creates high-interest debt that will strain your marriage, keep you from achieving your goals, damage your self-confidence, and tempt you to let yourself go and embrace a lifestyle of indebtedness. Creditors don't care about your wellbeing, and would love for every woman to resign herself to buying everything and owning none of it.
Master Your MasterCard
Breaking free from the habit of overspending requires discipline and determination. The first step to developing the discipline is to cut off your means to overspend by cutting up the cards. Chop them into little bits and thread a needle. Make a colorful bracelet to remind yourself of the big step you are taking toward actually owning the things you buy. If you aren't sure that you want to destroy your cards, put them in a cup of water and stick it in the freezer. Write your financial goals down on paper and tape them to the cup. Then you'll have time to think twice about overspending while the cards thaw out.
If you got into debt by using credit to make it through the loss of a job or other financial crisis, don't despair. No matter what got you into debt, you can get yourself out. Focus on the ideas of being more in control of your life, being a woman of stalwart character, and taking ownership of what you have. When the desire to charge it tempts you, remind yourself of the reasons you want to be debt-free, and search for creative ways to afford the items you need. Learning to deny yourself unnecessary things and be happy with simple pleasures is not only good for your finances, but also improves your character and total life joy.
Go ahead and get free. Cut the cards, and live more simply while you pay them off. Then save up some hard earned cash and take a debt-free cruise to celebrate.
Lindsey Meier lives in Texas with the love of her life and their two children. Between diaper changing and dish-washing she enjoys writing, reading and art. Lindsey and her husband aim to live productively and purposefully but don't mind having a little fun along the way.
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