A credit card can be many things to different people. There are those who are able to budget themselves properly and control their finances well. However, there are plenty of folks for whom their card becomes a vehicle for financial ruin. Many Americans these days find themselves in a credit crunch like no other due to circumstances that could have been prevented with proper financial planning. If you are looking to get rid of your charge cards and get control of your finances than this article will be of most benefit.
The use of credit has made shopping very easy these days. No longer do customers go their local Sears and put that new TV they have been eying on a layaway plan. Today, people live in a world where immediate gratification becomes more important than necessity. They facilitate purchasing much easier than the days when Leave It To Beaver was on prime time television. Unfortunately it is this need for immediate gratification that makes the use of your credit card so tempting. Because of this easy access to money, people will make purchases that should have either waited or not have been made at all. These days, layaway is no longer in fashion. However, for many this easy access to money becomes dangerous in that he or she forgets that the money they have just spent needs to be paid back. Those who poorly plan their credit card spending run the risk of paying late payments, exceeding their credit limit, running up a very high balance, defaulting or end up making payments to credit card issuers for years to come.
If you are reading this article, than you are more than likely looking for a way out of plastic card enslavement. In order to rid the credit card chains you must take the following steps. Furthermore, the sooner you act the sooner you will be on your way to financial recovery.
1) Get rid of all your card offers, especially the ones from stores. Do not fool yourself into thinking that it is going to be okay to have just one credit card available in case you need it for some sort of emergency. Remember, that behavior can become addicting. Excessive spending on your credit card is a form an addictive behavior. Burn your credit cards offer put them in blender, down the garbage disposal or whatever you need to do to get rid of them. Destroy the ones you have. You may think that you are strong enough to keep your card on you for ’emergencies only’ but it is better to be safe than sorry. I have seen even the mighty fall beneath the irresistible pull of plastic, so before you start saying things like ‘buying this pair of shoes is an emergency… it will help boost my spirits and carry me through the work week so I can make money to get out of debt.’ These mind tricks are a sure fire sign that you are not as strong as you think and the best bet would be to take a huge pair of scissors to your credit cards now.
2) Opt out of receiving any new offers in the mail. Yes that is correct. You can contact 1-888-5-OPTOUT in order to prevent issuers from continually sending you more offers that you do not need. Credit card solicitations by mail are just like phone solicitations from telemarketers selling you something you do not need or want. You can put your self on the do not call list and you will no longer be bombarded with telephone solicitations. Fortunately, you can do the same thing to credit solicitations. Just like you can prevent the telemarketers from calling you can prevent the card issuers from sending you more offers in the mail. Stop the madness at its source.
3) Come up with a monthly budget that you are able to live on. Determine how much you need for items such as utilities, food, rent, childcare, car payments, etc and live within your means. Pay for all of your expenditures with cash or debit card. Do not make unnecessary purchases that you really can not afford. There are many of us who fall into the trap of spending more than we can afford. Learn to be happy with what you have. There is an old saying that might be kind of trite but it is very true. Want want you have and you will be happy
4) Use your debit card or online bank account to pay your bills. If you need to make an online purchase, use your debit card. Debit cards are a great way to keep the convenience of using a credit card without the temptation of a credit line. Utility bills can be easily paid online with a debit card or through your online banking system. There is no need to worry about not having a credit card to make certain purchases or pay your bills easily. These days you can get a free debit card from your bank or you can also get one online.