Live a Life Largely Without Credit Cards!

by : Michelle Manning

Using debt might can seem like a good method to pay for items that either you can't afford or would rather not pay cash for. However, while credit might be a fantastic help when you get in a bind, it has the potential to be very risky.

Too high credit card debt can result in what may seem like many nights without sleep and worrying about how you will be able to pay back what you owe. However, while debt is a master hunter, you don't have to get trapped. Conversely, you can avoid it and have in a world where you are not bound down to your debtors, but alternatively, are able to live your life on your own terms. Below, we will talk about different ways in which you can stop being trapped by credit cards.

Have An Emergency Fund: You may or may not have heard that it is a wise idea to have at least 6 months of expenses placed in a savings account. This is well heeded fiscal advice. If something unexpected occurs such as someone loses their job, the vehicle needs repair or some works needs to be done on the house, you have the money for it and will not have to require the use of credit. Often times, people find themselves in trouble with credit cards because they rely on them to get them out of emergencies.

Many people don't have the money saved for unexpected situations because they use their money on non-essentials or they?? do not much money at the end of the month after they pay for their expenses, to keep. If your situation is the latter, look for places to cut back or either make more money. If you can make a commitment to this until you save your an emergency fund, it will result in two major benefits. You can not relax a little bit and you have likely gotten so use to saving, that it has become a habit, a good one.

Reign in your Impulses: We are a generation of people that has to have what we desire, right away. This attitude has been to our peril. People are in more debt and are forced to stay away from their homes in order to pay it back. Learning to control your impulses will help you get out of the strong grasps of creditors.

Create a Budget: Creating a budget allows you to know exactly where your money is going. We end up using money on things that we don't need and many times don't even remember because we don't budget. As a result, individuals do not have any funds left over to save. As a result, individuals end up using credit cards to get us out of trouble.

Pay Cash: If you use cash, you do not have to use credit. I know that very simple, however paying cash can be effective in helping you to not have to. Use the envelope method. Lots of financial pros suggest it. Determine your costs for each month and then put enough money to cover each bill in a separate envelope. Make each your payments in cash when you can (you will not want to put cash in the mail) and where it is wise. When the money is gone, that is it. This allows you to not have to use credit cards.

Spending Within Your Means: This is probably the most vital principle and is often violated more then any other financial principle. ?If individuals would spend only what we could afford, many of us of us could probably avoid becoming ensnared by debt.

I agree that these financial principles may seem like those of a time long past and that is because they are. American citizens, just 5 decades ago did not experience credit card debt like individuals do presently. That is because they believed in savings, using cash, budgeting, controlling their impulses and living within their means. This was honorable living. People took pride in it. This is because they intuitively knew that using too much on credit cards will eventually lead to financial hardship and cause you to be a slave to people that you owe money to.