Credit cards are so handy, so easy, quick and fluid. Just one tap or swipe, and you get what you wanted.
Credit cards are safe, especially for travelers.
Credit cards have great rewards, such as travel, entertainment, gift cards for shopping, etc.
And they are the greatest threat to the financial stability of millions of Americans.
Because they are so easy to use, and because we do like getting what we want when we want it, the combination is dangerous. Credit card debt is enriching the credit card companies but restricting the financial future for millions of American households.
What are some simple things you can do:
1. Admit it's a problem, if you have unmanageable credit card debt. Know it's a risk to your financial security.
2. Create a budget and stick to it no matter what you feel. A true emergency is just that - an emergency - but most of what we use to justify breaking the budget is not a true emergency.
3. Use cash for purchases. There is something about handing over real dollars to a vendor that drives home the idea that it's a true expense. If carrying cash is not an option, consider debit cards.
4. Don't get more cards if you are not managing the ones you have.
5. Give yourself a cooling off period before making optional purchases.
6. Of course you can cut up the cards if that is what it takes. If you do this, then delete the saved credit card information on websites that you use to shop. A less radical approach is to freeze the cards, the idea being that you have to wait for it to melt, and during the time you can reconsider if you really need to make that purchase.
Some of these ideas sound radical, but if you are being mastered by your credit cards and your spending habits, then it's time to get radical. After you become the master of your money, it won't seem so crazy. You'll be glad you were decisive.
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Disclaimer: The views expressed on this website reflect the personal opinions and experiences of the writer. Nothing in this article constitutes financial advice in any way. Information on this website should not be relied upon for investment or business advice. Please consult with a qualified financial professional before making any financial decisions.