Life without credit
Both T and I have made bad financial decisions in the past, but we've done a lot to change and improve that. One thing we have made a conscious decision to do is not have credit anymore.
Sometimes, this is challenging. There have been times when we needed/wanted to book flights, and could only do so when we had enough money in the bank. When we travel and rent a car, we can only use places that allow you to use debit cards, and they often place a hold on your account, so again, we have to make sure we have the money set aside for that.
But there are plus sides as well. If we really want something, we save up for it, and then we own it free and clear. And having to save up for it means we enjoy it more when we get it. It's changed how we look at shopping and buying things, because if we have to use our debit card, we pay for it immediately. I still think that with credit cards, it feels like you didn't really have to pay for it, because you don't see an immediately lower bank balance (or in our case, a smaller amount of weekly cash).
I see all the credit card commercials on tv, and they are so manipulative. Use your credit card for everything. Earn points for flights. Get cash back! Credit cards are easier than cash. And unfortunately, so many people buy into that. Oh, I'll be earning flights or money back if I use my credit card. Well, you could keep more of your money in the first place if you weren't spending so much to credit card companies.
And credit cards really target people who have no business having credit cards (college students, people who declared bankruptcy). They make it seem so easy, and they will keep increasing your limit, until one day, you look at what you owe, you look at your credit card balances, and don't even remember that dinner out you had last month but are paying interest on.
I just think that credit cards foster an unhealthy relationship with money, and it is easy to get screwed by them. Living without credit has its challenges certainly, but I think I prefer it this way.
posted by Kelly @ 2:28 PM
4 Comments:
I own a credit card-but I never use it. Ever. If I don't have the money, I don't get the thing-whatever it may be. and that's how I like it. rock on girly!
How right you are, my friend. How right you are.
I actually just cut up one of mine. Last night. :-)
Hooray to all of us for not buying into the credit card propaganda and limiting their influence on us. :)
Mik, that must have felt great to cut it up!
Hey, it's SavannahFaith and I am TOTALLY in agreement with you. If I absolutely need a credit card (to get work done on my car or if I buy a book for school online) I use my dad's card and then pay him back the money.
There are two things Americans have the most unhealthy relationship with -- money and sex. We make both out to be the end all be all of life and neither are. Both are important, but both have their place!
When I go to grad school, I will probably get a credit card, but I only want a very very low limit (like $200) so that if I blow a tire I can get it fixed (or if I lock my keys in my car, which I'm famous for doing).
I think a lot of people get a card without understanding how to use it and then before they know it, they're in deep trouble. Cos you're right, they think of it like free money. And it's so not.
The only way to have a credit card is to use it very rarely and pay it off EVERY MONTH! You have to constantly view it as money out of your bank account.
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