We would all like to be free of debt but for many people it is difficult to live without a loan of some sort and a credit card. Although we might not think of it as such, a mortgage is a loan but without one we could not buy our own home. But it is perhaps the other forms of debt that are most worrying personal loans, guarantor loans and credit card debt can all build up and create an enormous financial burden that we would like to be free of.
Yet credit cards in particular are forms of debt that we come to rely on and many people believe they cannot manage without. After all what about the times you’re waiting for your salary but need to have an urgent repair done on your car. However, it is possible to live without a credit card if you are willing to change your spending and saving habits. A credit card can get you out of sticky situations but, wouldn’t you rather not need it? Perhaps you have never believed that it could be possible to live without it, or you need encouragement to start saving so you don’t have to rely on credit in difficult times.
Hopefully, these tips will help you get to the point of a certain financial stability and security so you can survive without your credit card:
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Start Saving
Many people keep a credit card for emergency expenses, like expected repair bills. But if you start building a savings pot you would have some back-up funds should you need them in an emergency. Everyone, even those on the lowest incomes can save a small amount each month – you simply have to get started and want to do it.
Set Financial Goals
If you set financial goals to aim for it is much easier to stop using credit and start saving because you can visualise what it is you are saving for. Maybe it’s a dream holiday, a new car, or improvements to your home. Whatever your personal goals use them to help you get into the savings habit.
Cut the Cost of Your Existing Debt
Often it is hard to get out of debt and stop using your credit card because the interest rate you are paying on debt you have built up is very high. So before you do anything else try and consolidate your debts into a single, cheaper loan such as a personal loan or if you need a short term loan try guarantor loans or provident loans.
If you already have some savings you should pay off your debt with your savings because in the long term, you will lose more in the interest charges for the debt than you will make from interest on savings because savings interest is so low at the moment. If you don’t have any savings to pay off debt, you need to cut up the credit cards and look to consolidate the debts with a provident loan.
Remember, you can live without credit cards and once you are free of debt and surviving on your own, you’re going to feel fantastic.