The idea of using credit cards has become quite common among people. Whether you are a businessman or a teenager, credit cards have become the quick stop to all your financial needs. Though it might sound more appealing the truth is credit cards helps us to lend money with fewer procedures involved and the facility to repay later.
In some cases, people even tend to make use of credit cards to build their credit score to improve their eligibility for getting bank loans. Though this might prove valid to a certain point every new modern technique comes with its own set of pros and cons. There are hundreds and thousands of articles available online that provide tips for getting a credit card and its effective usability. This article is all about stating the ideas to stop using credit cards in the first place.
Many would tend to be curious to know why? Well, the simplest answer is that credit cards add your debt each month which is not a good sign when you are struggling to lead a decent life. So, by all means, it is necessary for people to realize the dark side of credit cards and how one could step away from them. Keep on reading…
Credit cards are the plastic money to the modern people. It makes transactions much easier and provides financial support in hard times. These are the common factors that make people believe in these cards. However, once they fail to understand is that these cards cost you more money in terms of interest and that is why is it must be stopped ASAP.
What Could Be Done?
1) Keep Track of Your Saving and Expenditures
The first step to getting away from credit cards is keeping track of our money. This proves way more useful as it provides information of where all our hard-earned money or being spent. It helps in making effective plans to avoid unnecessary spending.
2) Make a Budget
Budget refers to the idea of setting limits on all our spending. It is one of the best ways to keep a track record of all the money. It also said that a good budget is the one in which the income is the same as that of the expense.
3) Follow the Budget
Making a budget is not an easy task but you know what is tougher? Following it at all times. It is a real struggle that one must face to avoid being dumped by the ever-increasing debts. This could be hard at the initial stages but once it is done, this could benefit us greatly in the long run. So whenever a budget is made be sure to follow it at any cost!
4) Avoid Carrying Credit Cards
Though it might sound absurd, the truth is avoiding carrying these credit cards makes them less dependable. However, these cards could really be a lifesaver in case of any emergency conditions (only when there is no other way). But make sure these cards are used only on such hard times and not anywhere else. So it is advised to carry one credit card alone at all times.
5) Make Monthly Plans
The idea of staying financially safe calls for planning. One must plan ahead of their spending and savings to avoid any confusion at the last. So making such plans makes it easy to stick to one’s budget. Failing to make such plans could result in unbalanced spending that empties our pockets.
6) Save Money for Emergency
Life is unpredictable and we all know it. Even with such careful planning we often end up in certain emergency situations. This may not be avoidable but it could be managed. Grow the habit of saving money for emergency conditions. This greatly reduces our dependence on credit cards.
7) Stay out of Debt
Debts are the first enemy to people these days. So always stay out of debt. If you are someone who got into huge debt problems then it is time you stop worrying and start making plans.
Managing such debts is tricky and it takes careful planning and effective execution. But once it is successfully done it provides you great financial freedom. So always remember Debts are bad!!
Following all of the above-mentioned factors could really prove helpful to stop using credit cards for good!
Also, remember that Credit cards are not completely bad but could be easily misused which could greatly affect our lives. So it is wiser not to rely on them more.
Source: Say no to Credit cards