Credit cards are really easy to use. In fact, they’re so easy to use that you sometimes just forget everything and spend, spend, spend. You will spend even if you don’t have the money to pay for what you bought. And this is a problem. For all the benefits that credit cards offer, sometimes you just have to stay away from them. The following article will show you why you should say “no” to credit cards.
1. Credit cards can make you lose control
Whether we like to admit it or not, credit cards can make you lose control, especially if you really like to shop. At the very least, having such a tool at your disposal will not teach you self-control. And, without self-control, you can get in trouble really fast. If you have a problem with both self control and shopping, then it’s definitely a good idea to avoid credit cards.
2. Interest rates are high
Self-control is important because those credit card interest rates are high. If you buy things that you can’t afford, you can end up drowning in debt really fast. If you don’t have the cash to pay for what you want, then you should definitely think twice before using your credit card to purchase that item.
No matter what your friends tell you, it’s not enough to just make the minimum payments each month. If you want to be protect your finances, you have to pay everything that you owe on time and in full.
3. Interest rates can get even higher
Some credit cards come with acceptable introductory rates. But these can skyrocket after a while and may turn unacceptable. If you can’t pay these rates, you should avoid them. And don’t just think that you’re safe because you have a good job because things don’t always go as planned. You may need money to repair your car, your home, or for medical bills. Or you might get fired.
4. A poor credit score can create a lot of problems
Your credit score drops when you don’t pay your credit card balances. It’s one of the worst things that can happen. Credit card companies, refinancing companies, insurance companies and even some employers look at your credit score to see what kind of a person you are. A bad score will paint you as a high risk, an irresponsible person.
5. Poor financial habits also hurt your relationships
Money is one of the main reasons why many couples or families fight. This is why it’s so important to always consult with your significant other before making big purchases.
6. Buying stuff can be addictive
When you use a credit card to buy something, you don’t really feel the money leaving your pocket. It’s not the same as using cash when you go out shopping. When you use cash, you can physically feel the money leaving your hand and you have a better understanding of how much an item costs.
Credit cards make it really easy for you to spend more and more money.
7. Financing your purchases can lead to bankruptcy
If you spend too much, you may just find yourself in serious debt. Once you declare bankruptcy, your credit score will be hurt for up to ten years. It will take a long time and a lot of work to rebuild your credit.
8. Don’t underestimate the benefits of a debt free life
And not just a debt free life, but a credit card free life as well. When you don’t have to trouble yourself with late fees, interest or annual fees, life can be really good. And you can still buy the things that you want. You just have to save up for it first.
Just like any other tools, credit cards are only as good as those who use them. If credit cards aren’t for you, then don’t worry. There is still life without them.