Why we no longer have a Credit Card

Firstly let me just say thank you to Scott Pape, the Barefoot Investor for giving us the final nudge we needed to cut the credit cards up. I “opened Scott’s wallet” (virtually obviously), where he gives some very sensible financial advice. The piece of advice that excited me the most was to get rid of the credit card.

Now the hubby and I have been seriously considering giving the credit card up for ages but a few things were holding us back.
“What about the credit card rewards points? We could totally get enough points to go to New York with the kids” – Ummmm no, there is no way this was ever going to happen.
“Let’s keep it just in case we need it for an emergency” – isn’t that what our emergency savings is for?
“It’s only a small amount! We’ll just use if for bills and absolute necessities.” – yeah like concert tickets and online shopping!!!!

What we came to realise is that we are not like the financially illuminated folks that can “hack” their credit card and its rewards/interest free period programs. And most people aren’t. It is a matter of doing what is right for you personally.

And here is what I have worked out is right for us and may help some others out too.

PATIENCE minus a CREDIT CARD = MORE MONEY & PEACE OF MIND

You see even though we like to think of ourselves as a frugal family, having a credit card always gave us a false sense security financially. Then at the end of the month there was always the “Oh shit! I didn’t realise we spent that much money on the C/C this month!”

Without a credit card you are able to track your spending in real time. And if you want those Alpaca moccasins you’ve seen online you may actually have to wait and save for them. Hmmmmm wait and save…….what an old fashioned concept.

Note – when attempting to cancel your credit cards put aside the adequate amount of time for the banks to make it as hard as humanly possible for you to achieve. They may ask you questions such as “Are you aware that you have 2,000 points left on your rewards?” or “Are you aware that your first born child will be cursed for all eternity if you cancel this credit card?”. Proceed with your mission as planned, do not be deterred by fear mongering and greed!

This is one happy credit card free Storm Trooper

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