Living Debt Free: Your Credit Cards

Yes, you can live without credit cards. Getting rid of your high interest financial crutches will set you free! Sounds simple, doesn't it? It's not simple but it's very worthwhile. Can you envision your life without debt? Many people can't imagine what that's like so don't even try. Try it for a minute. Think about how different life would be. It could be like that for you; but it's up to you to take the narrow road and make some changes.

You might think you're unable to deprive yourself of the security blanket a credit card can provide. If you see a credit card for its true colours, you'll see that it does the exact opposite of provide you with security and peace of mind

Credit Card Dangers

Credit cards bind you to a life of debt. They are not good debt unless you pay the balance every month, never pay interest or fees and get loyalty rewards. The thing is, most people who start out with these don't go long before they're carrying a balance and paying hefty fees.

Another problem with credit cards is that people use them to live on which means that everything they buy costs more. Buying gas and groceries on the credit card doesn't make sense if you're not going to pay the balance before the due date.

Many justify credit card purchases because, "It was on sale!". Well... how much will the TRUE cost be when you factor in all the costs associated with that credit card. Chances are you're paying a heckuva lot more than the regular price! Credit cards are dangerous.

Are You Living Below Your Means?

A lot of people live above their means which means they spend more than they have. This vicious cycle will NOT end well! Many people live right at their means which means that they spend every spare cent they've got and never have anything put away for a rainy day. People in these two groups are probably two pay days away from bankruptcy and could not survive a financial crisis.

You need to budget and live within your means. Cash is king and can give you more buying power than you might imagine. By saving up and spending with cash you'll never have another creditor call you, you'll never dread opening the mailbox. You'll start to have spare cash laying around because you won't be spending more than you earn and you won't be paying for last year's vacation for the next five years.

Stop using 'stuff' to fill a void in your life. Start living below your means. If you feel like you need a credit card for booking things and shopping online, buy a pre-paid credit card. They don't cost much money to operate beyond membership / convenience fees (which are dwarfed in contrast to a typical credit card's cost of doing business)

How Pre-Paid Credit Cards Work

A pre-paid credit card has a process by which you'll load the card so you have an available balance. It'll have a Visa or MasterCard logo and be accepted everywhere those cards are accepted. You'll likely be able to check your balance by phone or on the internet just like a regular card but the big difference here is that you cannot spend what you cannot afford! Convenience without convenience fees!

Your Financial Future

If you think it doesn't sound fun to live below your means, you've got a jaded perception of true financial freedom. Financial freedom means more disposable income instead of a mountain of debt and means paying the true cost of an item instead of principal + compound interest. Get a budget , get debt free and change your financial destiny for the better!