In the style of "The Tonight Show with David Letterman," I have put together a list of reasons to get rid of your credit cards. Here's my list:
10. The issuer can change the interest rate at any time (not only on future purchases, but also on past purchases)
9. We're instructed by church leaders to stay out of debt, but each time you use a credit card you create new debt
8. Paying your mortgage, rent and utilities on time is a better way to establish credit
7. It provides a false sense of security (debit cards provide the same fraud protection, cash provides 100% fraud protection)
6. It's easy to hide expenses from yourself and your spouse
5. It's easier to break the budget when you're spending someone else's money
4. You're spending future income on things you want today
3. The issuer can drop your available credit line, and if you're maxed out, this could trigger overdraft fees
2. The issuer counts on you occasionally paying late and triggering additional fees
1. A credit card should not be a substitute for an emergency fund
Once my wife and I got rid of our last credit card, we felt a sense of independence, relief, and control. Do you have any additional items that could be added to this list? If so please post in the comments below.
1 comment:
With the economy bruised by recession, the rules of the game have changed. A country that was always based on free trade enterprise has been forced to seek help from the government to guarantee the fiscal safety of large financial institutions. Companies no longer want bad debts cluttering the balance sheet. For this reason, these companies are prepared to settle debts for 30 to 40% of the original amount.
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