Avoid Credit Card Debt

Avoid Credit Card Debt

How to avoid credit card debt? Seems simple doesn’t it?

Don’t swipe your credit card when you purchase something. Unfortunately many Americans, an ever increasing amount, feel that credit cards are necessary for survival.

According to USA Today more and more people, when forced to choose, will pay their credit card payment instead of their mortgage. These people figure that the home is a lost cause but they can’t live without their credit card because it is their cash flow.

I have to say I am appalled at this discovery.

Let that sink in a little. Some people are so attached to their credit cards they would rather be homeless than face the possibility of losing their plastic?

WHAT?! I hope that is the small few.

I believe there are so many that have convinced themselves they have to have the latest and greatest. But they cannot afford it and so go into debt. Be realistic if you can’t afford it, you don’t need it. We generally are able to find money for the things we need. In order to avoid credit card debt you have to be able to say no to wants.

While we need to eat and have clothes, we can use hand me down clothes and non name brand food.

Is it more important to you to have a certain “thing” that will just fill up your already full closet space or to have peace of mind when you go to bed at night?

I bet you could get rid of half the junk you bought on credit and not even miss it. Yet there are many people who claim they “need” their credit card.

We have been conditioned that yesterdays luxuries are today’s neccesities. How many pairs of shoes do you own? If the answer is more than 1 you are richer than most people in the world.

How about televisions, DVD players, Ipods, video games, computers, etc. Unless you can get them without debt you have no need for them. They are luxuries and a drain on your income. These are prime examples purchases not to make in order to avoid credit card debt.

You have been commercialized and marketed. Don’t throw away your future for an extra swipe of the card today.

What you really need is a change in attitude and priorities.

I recently came across a poll that relates more directly to the point I want to make. A poll called “Taking Charge” is a yearly public opinion poll of Americans on spending and credit cards. In June 2008 there were some interesting findings.

  • • 82 percent say it is essential to have a credit card today with the same percentage saying credit cards provide a valuable service.
  • • 76 percent feel there's always a "catch" that makes a credit card less attractive than the credit card company makes it sound.
  • • A majority of people (58 percent) don't trust credit card companies.
  • • 56 percent have been disappointed by a credit card that turned out not to be as good as they expected

A vast majority of people feel they cannot live without a credit card yet more than half have some understanding of the fact that credit card companies are untrustworthy. Alright, untrustworthy is too nice a word. More like sneaky, underhanded, selfish thieves.

So here is my question why if we don’t trust credit card companies do we insist they are “essential” to have?

Why not just avoid credit card debt altogether? How is it that Most Americans think that these companies provide a valuable service when what they actually have done is create a tax on all purchases, whether made with a credit card or not?

Credit card companies charge businesses a fee every time a customer pays with a credit card. The company now has to pass that fee onto you, the customer, or eat it, which do you think they do? That’s right they pass it onto you, even if you pay cash. Then if you did use your credit card you now have the opportunity to pay interest on that higher cost purchase if not paid off by the end of the month.

Avoid Credit Card Debt

Wow, what a service.

I do not have a credit card. I have not had one for over 5 years. I use a Debit card and get a long just fine. I have traveled, bought items online, purchased gasoline, etc.

I have heard of too many that use their credit card as their emergency fund. That's a bad idea! This alone is a great reason to avoid credit card debt. Our emergency fund is cash. Actual cash! It is not tempting to use it, ok it was at first. But now I just want it to get bigger. We have needed it a few times and it has been so nice to use it and then replenish it. I am more at ease with life.

So you may be saying, well that’s fine for you someone who is rich, but I can’t afford to live like that. I need my credit cards. Really? Let me give you a little insight into my financial situation.

I am a stay at home mom. Currently we make a little money from website revenue, although as of this writing practially none from this site. My husband works full time and gets a salary of $39,000/yr. We have 4 very small children. 7, 3, 2 and newborn. I homeschool my children, which is not free. We are buying a home. Our utilities in this area are not cheap. We are able to pay all bills and put $1000/mo extra toward our mortgage. All raises go to paying off the house.

Life can be lived without credit card debt. Avoid Credit Card Debt because it will eat you alive, choose to live free!

Credit card companies are not here to help you, they are here to take advantage of you. Avoid purchases that are unnecessary and you will avoid credit card debt.

"A man in debt is so far a slave,"
Ralph Waldo Emerson.

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