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5 Reasons to Give Your Credit Cards a Rest


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5 Reasons to Give Your Credit Cards a Rest

November 5, 2010

There’s nothing wrong with using credit cards as long as you do so responsibly. But no matter how responsible of a cardholder you are, it might still be a good idea to give your credit cards a rest occasionally.

Here are five reasons you should consider leaving your credit cards at home once in a while, and using good old fashioned cash.

1. Pay down debts.

If you’re the type of cardholder who finances purchases long-term, leaving your credit cards untouched for a while gives you time to pay down your principal balance and interest payments. Even a few weeks of payments without your usual spending could put a nice dent in your credit card debt.

2. Become less reliant on credit.

What would happen if you suddenly didn’t have access to the level of credit you’re used to? Would you be able to get by? Take some time off from using credit cards, even if it’s just to remind yourself that there is a life (and a successful financial one at that) beyond them.

3. Avoid temptation.

If you’re the type of cardholder who’s currently in debt, that might be a result of your available credit limit making it easier to give in to temptation when shopping. Go without your cards for a while and you’ll have to make better buying decisions based on your cash on-hand, judging every purchase on its own merits and not just because it looks like a good deal and you figure you can always pay it off later. If you break that bad habit, you might find it easier to abstain from over-spending later when you do use your credit cards again.

4. Save more.

Go through your credit card statements from the last three to six months. Total up things that were likely non-essential purchases. Figure out the monthly average you spend on these things because of the convenience and credit limit of your credit cards. Now ask yourself if those purchases were all worthwhile, or if you wish you’d have saved that same amount of money each month instead. How much cash would you have now if you had? Take a month or two off from credit cards and see if using cash helps you cut down on that non-essential spending, leaving you more to put into savings.

5. Be a good influence.

Do you have children? If so, being a responsible credit card user is certainly one way to be a good influence. But so is teaching your kids that they don’t “need” a credit card (at too young an age) or showing them how to make buying decisions without one. Teach them to save up for things they want rather than charging them for example. You don’t have to leave the cards home all the time to do this. Just mix your spending habits up a bit when they’re around, letting them get a broader financial picture.

If you can’t even remember what it’s like to not have credit cards around, take a break. It doesn’t have to be a long one — just a week, or a day, or even one shopping trip. See how it influences your buying habits and decisions. Doesn’t work for you? Well, then at least you’ll leave the experiment with a greater appreciation of your credit cards and you’ll be a bit more conscious of how you’re using them.

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