credit card free wannabee

Sarahsaver

Any of you out there got rid of CCs?
I want to get rid of mine and never have them again. They are on 0% at the mo but I am paying nearly 200 a month. I got one bcos i needed a new boiler last year that was £4000, the other is paying off a card which I tarted. Should i hang on to the cards or clear them out asap even with the 0%? Am I better paying off in full ( I may be able to do so, may be getting some money...) or saving in a savings acc and keeping the cards.

Whats life like without a credit card? I dont use it much but is it really that difficult to go without?

ms_london

When you say "they are on 0%", how many cards are you talking about? What are the balances & credit limits on them? And when does the 0% period run out?CC's are handy for the emergencies, like, the boiler for example, but it does take a lot to wean yourself off them.

For the past three years I havent had ANY credit available to me, no overdraft, credit card, cheque book, or even a debit card until this year, so I havent had a lot of choice to budget and make sure I was living within my means each month, and as time went on I was actually having money left at the end of each month, which was a definate first for me, believe me.

At least while the CC's are on 0% you can make real dents in the balance, but its when the 0% period runs out that you have to worry.

If you are not using any of the credit cards I suggest cutting them up & cancelling them, otherwise they are too much of a temptation & you forget that they are not "real money".

As is is now, I still only have a debit card, and I rarely use that - preferring to use cash - because although I write down every transaction after ive used it, I much prefer to deal with cash as I know exactly how much I have left all of the time (i sound so old now, hehe!!).

xx

Spendless

I could quite happily live without cc but Mr Spendless has lots of business expenses without putting it on a cc and claiming back we'd be constantly digging into our household income. Sure someone better than me will come along with suggestions, but what about putting your windfall into a high interest savings account and continue to pay the cc at 0%. If you can continue doing this then you've got money for a rainy day and savings plus interest. If the 0% runs out you can pay off with the windfall but you'd still have any interest. You could also pay off cc in full and start paying the £200 a month you're currently paying off cc into savings account. Depends on how tight your finances currently are and how tempted you'd be to spend on cc.

Jim_B_3

I've never had a credit card; I've built up a buffer of instant access savings that mean I haven't needed a loan for some years. I use a debit card for convenience. It really is as simple as living within your means and spending less than you earn.

If anything big happens, I can arrange a loan, which will just about always have better terms than a credit card, ignoring any time-limited deals.

I've only had two problems; firstly, some hotels which do not allow for customers who, gasp, don't have a credit card. Usually a quick word with the manager and offering to put a few hundred quid on deposit on the safe sorts it out, although I'm told even that might be difficult in the U.S.

Secondly, not having a credit card means no financial records for banks etc. to check, so they cannot judge how much of a risk I am, so sometimes I am denied financial products. Most recently, a high-interest current account, despite making it clear I did not want the attached credit card or overdraft. Presumably they have a simplistic risk-assessment scheme and don't have the time to deal with individual cases. Can any confirm or deny this interpretation?

ffs

That must be one heck of a boiler!

Car hire is difficult with out Visa/MC/Amex, but the car hire companies will accept Visa Debit rather than Credit, they won't accept Electron though. The same is true for most online transactions too.

$17mma

I cant wait to get rid of my CC, I cleared it earlier this yr and thought I should leave it for emergencies. Wish I had cut the thing up and closed the account. It is just too tempting.

GreenFingers_2

A few years ago I had a business credit card but found I was putting personal items on it… general shopping, petrol, cash for going out, dining out, Christmas presents and so on. It was just so easy peasy. The light bulb moment came when I realised there was really nothing to show or account for the thousand pounds or so that was on it and I was actually in debt and being a bit frivolous or careless with the spending.....

It was with great joy I sat down one evening and with very large pair of scissors cut the Dreaded Beast into many pieces, wrote to the bank and cancelled the account and paid off the debt within a few months....

I only use cheques and real Notes and Coins and have never looked back. Also, having just cash and keeping an accurate chequebook balance focuses the mind on how little or much one has each month.

Finally, I am convinced Credit Cards and the availability of easy credit are perhaps the single biggest evil of the modern era.

Hope this helps.

$17mma

GreenFingers wrote:

Finally, I am convinced Credit Cards and the availability of easy credit are perhaps the single biggest evil of the modern era.

I agree!!................

SugarPlumFairy_3

Hiya

Im still pretty new to this myself but have spent the last 4 months living without my beloved credit cards. I have found it difficult but it is really nice to not have that guilty feeling in your tummy when you have used it and you know you shouldnt have!

johannamse

Someone cleverer than me described credit cards (and debt in general) as the modern day form of slavery.

frugglewump

I closed 2 accounts last month and the ones I hae left have 0% transfers which will be paid off in the next year. My aim is to get it down to 1 card with a - balance for emergencies that wouldn't stay in my wallet or fund paypal or anything. It's actually fun to call them up and cancel.