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Put the Credit Card Away: Reasons not to Swipe Your Card

If credit card companies had their way, consumers would charge any and every purchase they make every day of their lives. Unfortunately, that would only be fun until it came time to pay the bill. While it can be difficult to resist temptation from time to time, there are a few very good reasons to put your card away and refrain from making another purchase on credit.

Exercising Self Control Pays off

One of the first things children are taught is self control. Because of this, many children grow up to be disciplined, responsible individuals--until they are given a credit card. All of a sudden, with this promise of "buy now pay later" self control is thrown out the window and the impulse buying commences. Not only does this impulsiveness make it more difficult to maintain control over other areas of your life, but also it’s a great way to rack up debt.

Instead of being tempted to take yourself on a nice vacation or on shopping spree that you can’t afford, remind yourself that self control pays off. Yes, shopping on credit is fun at first, but when it comes time to buy a house and you’re so in debt that you can’t afford it, you’ll regret every dollar you spent on a frivolous purchase.

Over Budget: If You Can't Pay Cash, You Can't Afford it

Making purchases on credit also means that you’ve broken your budget. Every consumer needs a budget. This is the best way to make sure that your bills are paid and that you are building your savings account. If you are making purchases, even small ones, on your credit card, then you are exceeding that budget. Each time you use your credit card, you are borrowing money and that money needs to be paid back with interest. If you need to borrow money to make a purchase, then either you don’t need the item or you need to re-calculate your budget.

Interest Adds Up

Another good reason not to use your card is because it’s expensive. Each time you make a purchase and can’t pay it off by the end of the payment period, you’ll be charged interest. If you only make the minimum payments on your credit card every month, it can take years to get out of debt. Each time you consider making a purchase on your credit card, ask yourself if it’s really worth the extra money.

Plus, when you carry a balance from month to month, you’re interest rates can increase. While that 0% introductory interest rate may be tempting, it’ll end up costing you if you can’t afford to pay your balance each month. After the introductory period is over, your interest rate, as well as payments, will increase. Also, if you’re short on funds one month and make your payment late, your interest rate may go through the roof. If you’re balance is high, you’re payments may become more than you can afford.

When it comes to your personal finances, it’s always better to exercise caution. While it’s easy to rely on credit cards, doing so can lead serious debt accumulation. In order to put yourself in the strongest financial situation possible, avoid using your credit cards unless absolutely necessary.

If you need help managing your credit card debt, Advantage CCS can help you. Our non-profit credit counseling service is available online, via phone or in person to help you work out a debt management plan and get your finances back on track. Contact us today.