It is important to stop using your cards, if you have accumulated certain amount of card debt. Continue using these cards, most likely, your debt will grow each month and prevent you from building wealth.
So, how do you live without credit cards? Here's how:
1.) Track your spending habits as well as your expenses to see where you spend your money. Change the habits that are leading you to constantly use your cards.
2.) Create a budget. Set up a realistic spending limit on all of your expenses. The key to see it working is to identify where your money goes.
3.) Follow thru your budget plan. Use cash for most of your expenses to track spending. Following your budget plan is the best way to prevent you from running out of money every month. Although tracking these activities can be tiresome and time consuming, it's crucial to help you gain control of your money again.
4.) Stop carrying credit cards with you. Simply not having these cards will help you stop buying any unnecessary items.
5.) Know your priorities. Remember you need food, shelter and utility services every day. These come before your new dresses, shoes, or fancy cars. Stick to your priority list, so you only spend on what you need and will be able to pay off debt faster.
6.) Put aside some money for an emergency fund, just so you don't have to use your credit cards during an emergency.
7.) Set up a goal to get out of debt. Getting out of debt is a huge step; however, make time to create a debt management plan and take action on it.
Living without credit cards may not be convenient at first, but once you get into the habit of using cash, you'll not only spending less, but also paying off debt sooner.