Credit cards, while convenient, are not the friends your credit card company makes them out to be. While they do allow you to buy things with money you don’t have, they also make sure you pay for this privilege in more ways than one. You can end up with crippling debt that spirals out of control, accelerated by interest rates so high they make repayments nearly impossible. Is it time to break the cycle? Here are a few ways to kick your credit card habits for good.
Get a Loan
If you are using your credit card for emergencies or big purchases, then have you thought about whether there might be a better way? Take fast cash loans, for example. You get the money you need fast, but the repayment terms are often transparent and manageable, with competitive interest rates. What’s more, you don’t need to worry about monthly or annual credit cards fees.
Set a Budget
Many people use credit cards because they don’t have enough money to buy things they desperately want or need. If you set a budget and plan for these purchases – both the expected and unexpected ones – then you could say goodbye to credit cards for good.
An alarming number of people don’t set budgets and, therefore, fail to ever realize the life-changing benefits of doing so. Take the time to set one up and you can have money set aside for emergency payments, feel in control of your finances, and have more flexibility in everything you do.
If you knew the average interest rate on a new credit card was 19.25 percent, would you still charge items to it? That means a TV purchased for $2,000 would rack up $385 in interest alone, not to mention any documentation fees that may apply.
Education can be the key to kicking your credit card habit for good. Think consciously every time you pull it out of your wallet. That $40 dinner, in reality, costs you $47.70, and that $500 shopping trip was nearly $600. There are other, more affordable payment methods out there that can keep you out of financial strife while offering the same convenience.
Cut Your Costs
When you find yourself pulling out your credit card more often than not, you may begin to wonder whether you’re living within your means. Could it be time to cut costs? There are many ways to reduce your spending for the sake of your bank balance and debt levels.
You could take public transport more often, cut down on dining out, and put the shopping trips on hold as well. Cutting your costs works hand-in-hand with budgeting – both of which will take the pressure off your bank account.
To truly kick your credit card habit, you need to pay it off and then say goodbye with finality. If you’ve relied on plastic for a while, though, it may feel like you’re stuck in an endless cycle. It might be time to start selling off some assets to pay off your remaining debt.
Look at items lying around your house that might have been impulse buys. That dust-covered treadmill, the bag of golf clubs, or even that brand new bicycle could all become cash. Free yourself from debt by making a few sacrifices.
Credit cards are your foe, not your friend. They allow you to spend money that’s not yours to buy things you might not need. Stop the harsh cycle by taking control of your money. Cut costs, spend less, and watch as your bank balance grows.