Start Living a Debt Free Life with One Simple Change
The Internet is flooded with advice and tips on how to eliminate your debt and start living a debt free life. My favorite tip is very simple. It doesn’t require much time or effort and it is very effective.
What is it? Cut up your credit cards now!
You probably heard this tip already and if you are like most people thought that it was crazy and absolutely unnecessary. Credit cards are convenient, some of them offer cash back programs and everyone else is using them. Yes? Well, not really.
Credit cards are convenient only if for some reason you don’t have a functional debit card. If you don’t have self-discipline, a debit card is not going to let you spend more money than you have.
Cashback programs? Are you kidding me? Discover offers 1% cashback on most purchases, but have you checked lately what the interest rate is? You know how to do math, right? Victoria’s Secret Credit card gives you $10 coupon for every $250 you spend. A whooping $10, which is one fifth of a regular Victoria’s Secret bra.
Everyone else is doing it? Yes, the majority does, but the majority of Americans are also in debt. If you are reading this article, I assume you don’t want to be, right?
Credit cards are not magic cards which can get you stuff and let you spend money that you do not yet have. Credit cards are evil.
Credit cards should not be an acceptable part of your financial life and they are not in most countries.
If you stop buying stuff you cannot afford and only use cash or debit cards, you will eliminate your debt much sooner. Try to pay off the cards with the highest interest rate and as soon as you are done, give the company a call and tell them you are closing your account. Don’t let them tempt you, It is their job to make money off you. Be firm and learn how to say No.
So if you want to start living a debt free life, do yourself a favor. Open your wallet and cut up all of your credit cards except just one. You will thank yourself later.
