Posted by Mike on September 15th, 2010
Last month, I closed all my credit card accounts. Â I sent the following email to a friend of mine.
I’M COMPLETELY FREE OF CREDIT CARDS!
I have not a one to my name or business.
It was fun calling them all and closing the accounts.Â They all wanted to know why. My reasons, when I shared them, totally baffled them!
He replied with the following:
THIS IS FANTASTIC!!!!Â Â You are now in the 15% of households with no credit cards. Ironically, as recently as 1970 only 15% of households had a credit card.Â What a run it has been for the banks but a disaster for most families.Â Keep up the good work!!
I used to think that having credit cards and paying them off each month was OK. Â My friend tried to convince me that having credit cards would increase my spending and limit my ability to control my spending. Â At the time, I didn’t agree with him. Â However, when I decided to leave my corporate job, I needed to cut my spending in half. Â That was when it really hit me.
It always surprised me when my credit card bill arrived, how it was always bigger than I expected. I was always able to pay it off, but it was a disappointment to do so and have to miss some other goal I had set with my money. Now that my credit cards are gone and all the bills paid off, it is a wonderful feeling to not receive those bills every month.
I will admit that it has been an adjustment to not just put it on my credit card when I needed or wanted to buy something. Â It takes more planning and discipline to manage the budget this way. Â But, isn’t that what I am trying to do? Â I will also say that I am getting pretty close to cutting my spending in half from what I used to spend. Â Pretty amazing, huh? Maybe it is true what I have heard, that you will spend 40% more with credit cards than without.