Living without Credit Cards

The credit crunch has made times seem very tough of late for many UK residents.  In fact a great deal of the UK consumers are using their cards in order to pay their way through each month, but is it really necessary?  Can there be life without credit cards even if you carry a balance on the cards?  For some credit cards is an addiction.  People drift away from the use for a few months or weeks, but then they are right back to using them as times get tough and the stress rises.

Studies have shown that you don’t have to use the cards.  Just stop using the credit cards, even  If you have to cut the cards up or lock them in a bank vault.  If you really want to make your debt better and live life a little easier this is the way to get your debts cleared.  Some individuals have even closed their cards with an outstanding balance.

Here is how that works.  If you don’t want the card used for fraudulent purposes from lack of disuse you can ask the company to close the card to new transactions.  You still have to pay the minimum payment or more if you can afford it, but you can’t use it as a crutch any longer.  There are some downsides to this option though.  A credit card that is officially changed will not allow the consumer to ask for a reduction in interest rates, but the company can still change the rates at their will.  This means the card could increase in interest.

An option in this case is to transfer the money to a card that you have a deal with and ask for a lower interest before freezing the card.  The other option is to keep the account open, but place the card where it is not in your wallet for handy use.

On average most UK residents spend about 400 to 600 pounds in interest each year as they continue to increase the balance on their cards.  Just think of what would happen if you didn’t use the card and began to pay it off.  It can be difficult certainly in times where the cost of petrol and groceries is rising.  However, if you are not adding to debt you are paying it down, and while some things may be taken off the dinner menu or new clothing is not an option, life can go on.

Credit cards do have perks such as free flights, but recognize what that comes with.  You could get the same rewards the credit card is offering just by not using the card.  If you are paying the amount of interest noted above that could be a flight to Ireland or somewhere in Europe that is paid directly out of pocket.  These are the savings not using a credit card can give you.  Emergencies may make it necessary to use a card, but if you have a card with a purchase deal for that reason there is still a chance to save.