Can you believe that we’ve had credit cards for fifty years? They have their place but they also can become a millstone that can ruin families. In the days of easy credit, they were offered and credit limits were frequently raised. Now, if you get a credit you’ll pay a huge interest rates as the lenders know desperation when they see it and know how to exploit it.
Lenders are there to make as much money from you as they possibly can. They don’t care what happens to you, how they can and will raise interest rates or how your family suffers if you struggle to pay back what you’d borrowed.
I’ve used credit cards in the past when we were renovating our house in Plymouth and had to face up to our own debt and know the enormity of what I’m about to suggest.
You can live without credit cards.
It starts with the difficult process of paying off everything you owe.
We took our credit cards, continued to pay the minimum payment on all of them and put as much money as we possibly could on one of them. We made the decision to cut every expense to the bone and did this by giving up everything that wasn’t an essential until we got out of debt. When we’d paid off one debt, we continued to pay the minimum payment on everything and added everything we’d paid on the debt we’d just paid off to the next debt. We did everything we could to earn extra money and used every extra penny to add towards not just paying off credit card debt but all our debts.
We’ve not looked back even though it’s not been an easy choice.
We live without credit cards by continuing to live simply. Now, we add extra money to paying off some extra capital on our mortgage each month, add some to a household savings account and some to our French savings account to pay for work on our French home. It requires the same self discipline as paying off debts, including credit cards debt.
It means that five years after paying off our debts we continue to budget for everything we do.
If we want something we plan for it. We also make decisions whether what we’re about to buy is needed or not. Our dishwasher died and we considered that we didn’t need to replace it. There’s just the two of us and now I only cook every other day which cuts back on washing up. Our boiler, which is twenty years old and you can’t get parts as it’s not made anymore, is beyond repair and failing regularly. Being clean is essential so we’re replacing it and we’ve saved over the last few years to do so.
It does mean we can’t be spontaneous but equally we’re debt free.
It’s not for everyone but it works for us.
Love Froogs xxx