Life Without Credit Cards? It's Not So Bad

For many people, credit cards are a way of life. Those who find themselves relying on credit cards on a daily basis may have trouble even imagining what life without credit cards could ever be like. The fact is, relying on credit cards to get through life can be a dangerous path to walk, as those who don't make use of the utmost responsibility and care will inevitably find themselves falling behind. Fortunately, it is possible to live life without credit cards, and when the proper tactics are employed, you can enjoy a much better and more prosperous life.
 

Why Credit Cards?

Credit cards are used the world over by individuals of all walks of life, and often for many different reasons. For some people, credit cards are used as a crutch; a way to get themselves by without admitting the fact that they are living beyond their means. It is this group of people that will inevitably find themselves in trouble down the line. Using a credit card as a method of subsistence is almost always a guaranteed path to financial burden, yet so many people do so every day. Sooner or later, credit abusers will find out how to live without credit cards whether they like it or not.

So why is it that using credit cards is such common practice, especially among those who can't afford to actually pay for their purchases? There are, of course, many reasons. But the majority are psychological in nature. For many people, having the ability to purchase things as they want them (even if they don't need them) can be extremely comforting, and taking this ability away can lead to anxiety and - in severe cases - depression. The fact is, most of these people use credit cards for superfluous items that they don't actually need. The satisfaction of buying is what they want, not the item purchased. When one learns to cut out this destructive method of thinking ("I must have this; I can't live without that!") it is possible to break free from a reliance on credit cards.

Using Credit Responsibly

It is possible for people to use credit cards responsibly, and doing is far from damaging. It can actually have positive impacts on both your credit and financial situation in general. While only 3 - 6 percent of card users are so irresponsible that they default, many credit card owners are over extended on credit, scraping by from month to month. If you are not sure if you can handle credit responsibly, your best bet is to avoid getting involved in credit cards altogether.

Using Credit Wisely 

Well, yes and no. There are many logical reasons why some people recommend avoiding credit cards altogether. They aren't necessary. It is possible to build credit without ever opening an actual credit card. Using a savings account for emergencies does the same thing as keeping a credit card, but costs a whole lot less. When you look at it that way, you understand that living without credit cards is possible and may be wise. At the same tie, credit cards do make it easier to build credit. Paying 18% on a $500 line of credit is a lot cheaper than 10% on a $5,000 car loan. But your financial health is not reliant on credit cards. If you cannot use them responsibly, you should find other ways to build up your credit. 

What's it Like to Live Without Credit Cards?

It's a little inconvenient for one thing. While you can get a debit / ATM card from your bank, it's tied into your checking account. Your level of financial freedom will depend on your account balance. And keeping a high account balance for purposes of having the freedom to buy what you want when you want can also waste money. The interest you earn in a checking account may not even be enough to keep up with inflation. If you can rotate cash in the account through a CD ladder, the problem can be solved, but it takes maintenance and strong financial organization skills. 

But all in all, it's not that bad. Even with just $3,000 or so in the bank, you'll have the freedom to handle most situations without running into trouble. And when you want to buy something really expensive, you'll have to save money before you can buy it. That may be inconvenient, but it's a smart way to live.