Say No to Plastic – How to Stay Away from Credit Card Debts

Posted by MoneySavvy on Jun 14th, 2010 | no comments home title

Credit cards are a wonderful invention, right? They help you manage those small financial emergencies and they satisfy the urge for instant gratification. However, those small financial emergencies and retail splurges can get you into a lot of financial trouble quite quickly. Here’s how to say no to plastic.

1. Have a savings account. In fact, have two or three. Savings is a lost art and one that’s finally resurfacing. Save for emergencies, save for retirement and college, and save for those things you want to buy but don’t have the cash for right now. Instead of putting that flat screen television on the credit card, save for a few months and pay cash for it.

2. Stop going to the mall. Shopping has become a pastime for many people. It’s a way to relieve stress, and it’s so popular people have coined it “retail therapy.” Find other ways to spend your time. Go out with friends, spend time with family, find a hobby – and get a second job. That way you’re making money instead of spending it.

3. Learn to value what you have. We always seem to want more, yet the television is full of shows about organizing, getting rid of clutter and hoarders. It seems we already have too much. Instead of shopping and adding clutter to your life, learn to value and appreciate what you have.

4. Create a budget and stick to it. I know, that dreaded B-word: budget. A budget is how you control your money. It’s nothing more than a monthly plan. It’s not a diet, it doesn’t restrict you or prevent you from doing anything, and it simply helps you know where your money is going.

5. Look for bargains. It’s amazing how many bargains are out there if you’re patient and diligent. A $1000 flat screen television can be purchased for $300 if you pay attention to sales. A $300 leather coat can be purchased for $60 on eBay only because it’s slightly used. If you’re in need of something, look for bargains.

6. If you absolutely have to use a credit card, come up with a plan for paying it off before you make the purchase. Telling yourself, “oh I’ll pay it off” isn’t enough. Plan how you’re going to pay it off quickly.

7. Give yourself 48 hours to think about it before you buy. If you’re stricken by the need to purchase something, give yourself 48 hours to think it over before you make a purchase. Chances are, after that time, you’ll decide it isn’t a necessity. It’s surprising how much we can actually live without.

Credit card debt can ruin lives. Find a way to live without it and you’ll have a much happier and less stressful existence.