It’s hard to believe that someone in this day and age really doesn’t own a credit card. I do have a debit card, which in truth is hardly the same. This was a voluntary choice and a choice that has been scrutinized by many from my parents and friends to the obvious sufferers – credit card companies!
I don’t regret my decision which my husband and I made over 10 years ago.
History of my Money Management Tactics
- I am one of those people that simply can’t owe money to anyone. If I borrow, I pay back immediately or else it eats away at me.
- I have never ever been late with the rent or a bill
- I have never ever bounced a check
- And when I did own credit cards I only bought what I knew I can pay for and found myself sending checks to the CC company before my bills arrived
Making the Move from Credit Card owner to Debit Card Owner
- For me it was simple as compared to others. But one way to stay away from credit card debt is to tear them up and have only what you can at your disposal via debit cards!
- Plus, when you have a debit card, it still feels and looks all the same, but takes away that huge baggage of DEBT from you!
Benefits of NOT having a Credit Card
- Buy only what you can afford
- Never worry that a bill will be arriving at your doorstep
- Never worry that a CC bill wasn’t paid for and then having to owe 20% interest on top of the money owed
- You can use it like a CC so people won’t be constantly asking you where’s your CC
Disadvantages of Not having a Credit Card
- It still looks and feels like a credit card and unless you are on top of what you have in the bank, you can leave yourself completely penniless for the month.
- Credit score and rating – a lot of people say this move will really affect my credit rating when I want to borrow money. I actually have friends that say that they need to make a huge purchase with their credit cards (owe the money later) so that they can get a better credit rating. This to me is absurd! And if you really want to get a loan, you will be able to do so by showing that you are good with your bills.
- Emergencies – yes, this is a huge one and at times I have even considered getting a credit card just for that particular reason in itself. What if I am in a huge jam – stranded somewhere, car broken down, hospital bills – what happens? Honestly, I’m still battling with this one – so will have to get back to you later on it!