Most Americans never seems to realize how much they lose over late payments for their credit cards. They will only realize when the credit card companies fights with them over their interest rates.
Personally I have been a victim of being charged high interest rates over just one late payment. My credit card company doubled my interest rates and piled huge fees on one late payment that I forgot to clear.
After realizing the hidden fees, I closed all my credit card immediately. I was really shocked to see how much iam paying in interest. That was in 2003, and since then, am living without credit card. People fear credit card because they equate them with debt.
I know operating in a world without credit card is a challenging task, but you’ve to let that fear go.
Do not have a mentality of spending now and dealing with consequences later, that attitude will inconvenience your ability to manage your credit card as well as your cash flow.
Once you’ve a blueprint on how to manage your life without credit cards, then it will be easier than you think.
Well, in this content we’ll discuss epic tips that will help you live without credit cards.
1. In order to pay off your current credit card, you need to budget as fast as possible
2. Apply for another balance transfer credit card i.e. look for a credit card that has a zero percent introductory APR as it will help you get rid of all your other cards.
3. When you run into financial emergencies, credits cards are helpful, but you should make sure your saving account is fully funded and stable so as to avoid embarrassment. Since life is unpredictable, I’d encourage that you continue to pump your emergency fund account. You should set a saving account for emergency as this will help you curb spending temptation.
4. The big mistake I did was to cancel my credit account, this was because I dint have the urge of using them unfortunately my credit report had a major impact. Before you forgot to cut your credit card, make sure to analyze your credit history. Don’t cancel all your credit cards, just stop using them. Here’s quick roundup of 51 Ways to get out of Debt.
5. Pay off all your credit cards so as to limit your debts.
6. When I realized that my credit rating had dropped, I started to research how I’ll bring it back to normal status. The good news is that I had other diverse credit portfolios which included car loan and other types of personal loans. Make sure you’ve a diverse credit card that will help your credit score especially when getting mortgage loans or any other financial loans. (SEE ALSO – Options for Personal Loans)
7. Start a home based business or an offline business that will consolidate your investments. But before you start any side business, you need to evaluate best business that will earn you stable income. Here are a few things you can do to boost your income.
8. Get a secured credit card because they a lower limits. They are best suited to people who do not want huge debt but still need a credit card for their credit score. What i like about secured card, is that it will help you keep your credit ratings up while diversifying your credit portfolio. If you want to make a plane reservation or rent a car or pay for concert tickets, secure card can still help you do that.
9. After I cancelled my credit cards, I wasn’t concerned with my credit history that was until I applied for a house mortgage and was rejected without sympathy. When I checked my credit card report, I found out it had dipped. Before you cancel your credit card make sure to track your credit score consistently so as to rebuild your credit with other loans that you might took.
10. Engage the services of credit report monitoring services to help your track your credit score and protect you from identity theft.
11. Get a credit card that pays you cash back and use it just like a normal money. Buy what you can afford and what you need.
12. Pay close attention to your credit card balances so that they do not get out of control. It will be a convenient way of paying bills.
13. Set up a health savings account which will help you save pre-tax money for out-of-pocket health care spending.
14. If you’re an outgoing person, then I’d recommend that you open a holiday or vacation savings account and give it a nickname so you know the purpose of the account.
Once you succeed in living without credit card, you need to figure it out how you’ll pay for things. Below are some of the 6 ideas that you should develop.
a. Tie your account directly with PayPal. This is because most online retailers accept PayPal as a way of payment.
b. Have a check a book that will help you make payments as most retailers still accept cheque.
c. Remember to track your cash spending, but do not carry too much of it.
d. Before you load money into your pre-paid card, make sure you check their charges fully before you end up paying high fees.
e. Before you get your Debit Card, I’d suggest you read their Terms and Conditions so you know that you’re protected from unauthorized charges otherwise your bank will be fighting with you on late payments.
f. Take advantage of layaway this is because many retail stores still allow you to hold an item until the payment is paid in full.
Over to you
If your credit score is dropping because of poor credit card report, then you should check with your bank account manager and agree on how to improve your ratings otherwise, your history could hurt your chances of getting a house mortgage or any personal loan.
It’s not impossible to live without credit card, so many people are doing it and they are having a free life without debts. The only thing that you should do is by being discipline with what you do with your credit card. If you want to get rid of credit card completely, then you should implement the above epic tips and you credit history will be positive.