Discard Your Credit Card and Become Debt Free!

We all know that we live in a cash free world and that most purchases are usually paid with CREDIT cards. This is healthy sign for the economy but for people who are complacent when it comes to managing their finances, this is a big problem.  People today use plastic as though they have all the money in the world. The wake-up call is when they realize that they can no longer pay the liabilities caused by the credit card. Even intelligent people seem to see credit cards as a free access to buy anything until they finally receive bill. The person finds himself up to his neck in debt and if no financial solution is at hand, the last recourse is to file for bankruptcy. Credit cards are perhaps the major cause why most people end up neck deep in debt or worst bankrupt.


Control the use of Plastics

People would say this is easier said than done. But if you are really bent on staying debt free, you should realize that the only way to do this is to control the use of your Credit cards. Like any addictive substance, one can easily wean himself away from using plastic. If you have several credit cards, your first step is to cut up all your cards and leave just one for your personal use. Leave a card that that has the least credit limit. This way, you will be forced to only use the card only to purchase necessary items. This will also make you start analyzing your current financial situation and start to balance your income against your expenses.


Set up a Credit Card Repayment Plan

Controlling the use of the credit card, will allow you to set up an efficient way to pay up whatever is left of your credit liabilities. To do this you will have to learn how to manage your income against your expenses. This may be hard at first but you will soon find a way to efficiently handle your monthly income against your expenses allowing you to pay off most if not all of your liabilities caused by using plastics.

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