Cut Down on Debt by Cutting up Those Credit Cards

Credit cards have become such a normal and accepted part of our financial lives that it’s often hard to see the negative impacts they have. We can barely go a day without finding credit card offers in the mailbox.

Credit Cards

In fact, this type of debt has been so strategically marketed to us that we have fallen for it hook, line and sinker.

Contrary to what many people believe there is no good side to owning a credit card – if you are struggling with debt. The truth is, your debt could be easily reduced if you’d just get rid of the plastic and make it a habit to pay only with cash. Here’s why.

High Interest Rates

Credit cards are known for insanely high interest rates. If you’re not in the habit of paying off your balance on a monthly basis (and if you’re in debt, you likely do not do this) you will get socked with the balance, plus huge annual percentage rates. With every purchase you are digging yourself deeper into debt. Many times this is where trouble begins and makes it impossible to keep up. Add in the myth of the “minimum payment” and you’re setting yourself up for a lifetime of debt.

Easy to Use

Since credit cards are accepted nearly everywhere we go, it is so simple to pull out the plastic and not even think about how much we spend. When using a credit card, we don’t register that we are spending actual money. At least not until the bill comes in the mail and you’re shocked at how much you’ve spent. Despite all that, it’s still tempting to use credit cards when you don’t have the money to buy something, making them even more dangerous.


Credit cards will hit you with so many fees it will make your head spin. They charge late fees, over the limit fees, annual fees, ATM fees, etc. If you’re not careful you will find yourself in debt before you even receive the card in the mail.

Cash Withdrawals

Here’s something else that often gets people in trouble. Cash withdrawals from a credit card are much more costly than those you get from a debit card, and can cause your debt to skyrocket. Before hitting the ATM with credit card in hand, be sure you know exactly what it’s going to cost you.

If you can avoid credit cards your financial future and bank account will be better off. If you have a large amount of debt you want to get rid of, you can start today by simply cutting up your credit cards, and deciding to save up and pay cash for the things you want. All it takes is a little self-discipline and a desire to change your financial future for the better.

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