We live with a lot of financial myths that are thrown at us. There are so many people around the world who are reeling from the effects of this downturn, and have so much credit card debt to deal with. You don’t finance anything, in addition to avoiding credit cards, which means you don’t get a loan for a car or a mortgage for a home, for example. Have we become a society of want instead of what we need? Cards are a life line for emergencies that when you do not have the money at the time, i. e. Here’s how. The first step is to do an honest assessment and soul searching in terms of one’s expenses, be it credit card payments or otherwise. Your credit history will become dormant as you pay off existing debts and not use any other credit – and as a result, your credit score will probably go down as well. By building up and preserving an emergency fund, you will never need to fall back on dangerous credit when times get tough. People who choose this lifestyle tend to be very good at saving money, so that they have it available when they need to make a purchase. They also tend to have higher incomes than people who become over-ridden with debt but it is definitely possible to live a cash-only lifestyle on lower incomes as well (and very beneficial!)
Some purchases are difficult to buy without a credit card – things like airline tickets, car rental or hotel rooms for example. Life is a journey and freedom from credit card debt also starts with a single step that you take forward. What we need to do is come up with a monthly budget for things we NEED such as groceries and electricity. This determination will stand you in good stead in terms of your quest for freedom from debt. . This will enable you to have a good credit score without carrying a lot of debt, and should you ever need financing for emergencies or other purchases – you should have no difficulty getting it. Most people think that they cannot survive without a credit card but they are wrong. Being deep in credit card debt can be a real strain on the family and if one worries too much about how to get things paid for they can possible get sick or just be so uptight about life in general that one tends to forgot to enjoy life. The reverse works in your favor. It is possible by sticking to a budget, to mangage without the use of a credit card. Finally, renting is generally a better option than owning. Cards can be a great help when they are used carefully. A house is not an asset unless you are renting it out. An asset it something that gives you money. If you use your card make sure you quickly redo your budget to take account of the new repayment to pay off your card quickly. Living without credit is not hard, it’s actually much simpler than living out of the banks’ pocket. Free yourself, live a cash only life, and you’ll be much happier, freer, and wealthier. .
