No More Credit Cards!
By Zer0Stats
@Zer0Stats (1309)
India
January 19, 2011 2:24pm CST
Hi Mylotters,
I am very happy today as it is official that I have no more credit cards.I have cancelled all my credit cards and now I only use cash and debit cards for my spending. I used to have the Gold and Platinum Visa and Mastercards from a few different banks.
I got my first credit card when I was 18 and until yesterday,that card was still active.Finally,I figured out that if I keep on paying minimum monthly payments for my card,I would never be able to pay up all my debts forever.That would take my whole life paying with no end.What are the problems with credit cards?
Firstly,if you always pay the minimum amount every month,you will be charged with a heavy interest rate on the unpaid balance.Over here the lowest rate is about 24% per annum.That is a lot!
Secondly,you would always want to spend the money that you do not have and in the end you have to use the money that you have to pay for your credit card bills and sooner or later,you would notice that you would be paying and paying and have nothing left for saving.Now,restricted to cash and debit cards,I am forced to manage my cashflow and make sure that I have some money saved for the rainy days.
What do you think of that?And how are you doing with your card?
7 people like this
21 responses
@bounce58 (17392)
• Canada
19 Jan 11
Congratulations on getting yourself rid of credit cards! I've also wanted that goal for myself for a long time. Unfortunately, it is impossible to do much of anythign (loans) here without a credit card. I did get rid of one of my cards last year and I am left with only one.
And sadly, I am not doing OK with this one. I've got a target number this year in which I plan to get my credit-owing below it.
@Zer0Stats (1309)
• India
20 Jan 11
Yup,you are right.Its a bit hard to get rid of loans but using credit card to get rid of other loans isn't a better option.Credit card itself is loan.Sooner or later you have gotta pay it.
Anyways,thanks for sharing your experience and glad that you are under control now.
@tonyllenium (6254)
• Italy
14 Feb 11
yes i think that you took the right decision for you and your life too!!In reality a credit card is more comfortable as method of payments in general but if this will bring you having too much debits is better to lock or delete it ..surely you cna live good eeven without a credit card!!
@Zer0Stats (1309)
• India
18 Feb 11
You're absolutely right there! No control means disaster! I had the pain and now it is gone.Cheers!
@Ingkingderders (3833)
• Philippines
20 Jan 11
Wow!! Congratulations on that! I currently have 3 different credit cards, though I am proud to say that I pay my bills on time (and not the minimum amount either!).. I try to always zero out all my balances at the end of the year so that my outstanding balance won't balloon out of control.. I have been planning on cutting 2 of my cards, and just leaving one for emergency purposes, but I find that if I just teach myself to shop smartly then I won't have to have my credit card cut. So that's what I did, and I'm glad to say that it's been working pretty well for me. 
@Zer0Stats (1309)
• India
21 Jan 11
Thanks for sharing your experience.That's the way to go.I'm glad that you are under control.Just be careful not to over spend it.
@Professor2010 (20163)
• India
24 Jan 11
Hi welcome to mylot
I have credit cards too. But whether it is restaurant or mall or grocery shop, I always prefer to pay cash, but if amount is high, I don't have in pocket then only I pay via my shopping card, which is also known as ATM or Debit card, very rarely I use my credit card, though I carry in my wallet always.
Thank you so much for sharing.
Professor ‘Bhuwan’. .
Cheers have a lucky day ahead.
@Zer0Stats (1309)
• India
24 Jan 11
Yes,let's stick to debit cards and cash only!That's the only way not to go overboard when shopping! Thanks for dropping by!
@fixerupper3530 (174)
• United States
11 Feb 11
Yeah, good for you......you are no longer busting you butt to make the credit card companies rich. I too got rid of all of my credit cards and do a weird thing called paying with CASH. It hurts more to pay for things when you see the money actually leaving your hand. Oh well, at least we are not slaves anymore...FREEDOM.
@Zer0Stats (1309)
• India
18 Feb 11
Hmmmmm,I think that will be helping you learn how much your own money is worth at the same time,won't it?
@johnlouieocampo (59)
• Philippines
20 Jan 11
Actually, i was planning to get one now but because ofyour post and other posts i have seen online i have been demotivated. I was planning to get simply because I would want to buy things in advance. However, after reading and analyzing things it became clear to me that it would be better to spend the money that you have instead of spending the money you do not have. Other than getting things in advance what are the other advantages of credit cards? I cant think of any honestly.
@Zer0Stats (1309)
• India
21 Jan 11
Well sometimes when we hold a lot of money,we want to buy everything we see,alike when we hold a credit card,sometimes we will be so wild use on it and it's better if we hold debit card...
@lingli_78 (12824)
• Australia
20 Jan 11
i got mt first credit card at 27 only after i get married and have my own job... not before that... i'm glad that i don't have a credit card too early because by the time i get my own credit card, i already know how to manage my own money and be responsible with it... that's why i never get into credit card debts even though i have 2 credit cards at the moment... i always manage to pay for it on time every month and i thank God for that... take care and have a nice day...
@Zer0Stats (1309)
• India
20 Jan 11
Yes,you are right.Its about being a responsible user.But sometimes we think we could pay back and then something else happen.Yes I know the rules but rules can be broken and therefore I took my action.Cheers!
@jhartana (1085)
• Australia
20 Jan 11
I once had two credit cards. This was a very big problem for me and I was very stupid to have used it to spend anything I want but when it comes to paying it back I was only paying minimum amount required to pay, without realising on that time that interests are killing me and making me even harder to finish paying off. After I got married my wife was helping me paying off, so I owed her a lot and someday I will pay her back. From that moment I have decided not to have credit card on my own again, because credit card is addictive and evil. I will never go back to credit card again.
@Zer0Stats (1309)
• India
20 Jan 11
Sorry to hear that and I hope you would be able to find some ways to pay her back soon.All the best and thanks for sharing your experience.
@anne25penn (3305)
• Philippines
20 Jan 11
Welcome to my club Zer0Stats!
I have been living without a credit card for the past six years and I am still alive
. Credit cards are painful to maintain, and from my experience it left with debt up to my eyeballs and almost buried me alive. So, it took a lot of courage and discipline to say "no" and cut my credit cards. Now, I am able to budget my finances better.
I have been living without a credit card for the past six years and I am still alive. Credit cards are painful to maintain, and from my experience it left with debt up to my eyeballs and almost buried me alive. So, it took a lot of courage and discipline to say "no" and cut my credit cards. Now, I am able to budget my finances better.@Zer0Stats (1309)
• India
20 Jan 11
Actually the credit card is a legalised loan shark.Credit cards make the bank richer and richer!Banks are just there to make profits out of you.Thanks for your reply!
@GloomCookieLex (6074)
• United States
19 Jan 11
I'm 23 years old and I have never had a credit card, nor do I ever want one. I think they are WAY more hassle than they're worth.
@salonga (27785)
• Philippines
20 Jan 11
I think that is the best decision you came up with. A person can survive even without credit cards. I believe having no credit card actually free us from indebtedness. I have never had credit card in all my life but I don't think I've been deprived of anything although it seems like all the people around me have one. I don't care. I use my debit card rather so I could not spend more than I have.
@Zer0Stats (1309)
• India
20 Jan 11
Yup,debit cards are getting better exposures nowadays!
Thanks for your comment!
@sender621 (14897)
• United States
19 Jan 11
Credit cards can be a convenience, but they can also get you into a lot of unneeded financial trouble. If we can get by without them, it can be a wise choice for our spending needs. if i don't have the cash, it's probably something i don't really need anyway.
@nattesc82 (23)
• Indonesia
20 Jan 11
i'm still using credit card for online shop, because online shop doesn't receive cash. For me the problem is not the credit card but our willing to balance our spending and do not burden our financial
@Zer0Stats (1309)
• India
20 Jan 11
I think you could use your debit card for online shopping too if its an international one and I think I am staying away from credit card for good.Cheers!
@jennyze (7030)
• Indonesia
20 Jan 11
I have two at the moment and I always pay more than the minimum payments, so I guess I am safe. But you are right, having a credit card tempts us to spend more and more. I spent more than I've spent before I had them 5 years ago. I applied credit cards because I thought I want to have some source in emergency, but it turns out I spent for something else altogether. 
@Zer0Stats (1309)
• India
20 Jan 11
Well,it is good that you are aware of the danger now so that you can be more careful with your card.All the best to you!
@cream97 (29088)
• United States
21 Apr 11
Hi. Zer0Stats. I don't blame you for getting rid of all of your credit cards! All that these plastic cards does is get you into deeper debt each and every time. I only see having a credit card as having a personal loan. You will still have to eventually pay any money back that you have used. And if it is not all paid back on time, interest charges/fees will be added. It is just awful to have to pay back a high credit card bill when it is due.
I don't have any credit cards, I am unable to have one. I am glad that I don't have any either.
All that these plastic cards does is get you into deeper debt each and every time. I only see having a credit card as having a personal loan. You will still have to eventually pay any money back that you have used. And if it is not all paid back on time, interest charges/fees will be added. It is just awful to have to pay back a high credit card bill when it is due. I don't have any credit cards, I am unable to have one. I am glad that I don't have any either. @Jennlk84 (4207)
• United States
19 Jan 11
That's great! Kudos to you! I own 2 credit cards and I always keep them paid off. Sometimes I carry a small balance for a few months before it's completely paid off but I don't have any trouble with paying them rather quickly. I feel quite lucky that my credit is so good and that I don't have issues with credit cards. Sadly I don't think I could live without them in this world though..so kudos again to you!
@Zer0Stats (1309)
• India
20 Jan 11
It is good for as long as you can manage your spending and payments but many credit card users failed to do that.
@much2say (51524)
• Los Angeles, California
19 Jan 11
Good for you! I got my first credit card at 18 too and then I got some more and then by my mid 20's I totally overused them. I got in a DMP program and that literally saved my butt. I got it all paid off in a few short years and now I use ZERO cards - oh do I feel so in control. I've learned to budget and totally live within my means. My husband and I haven't used any cards in years, but he has kept one in case of an emergency - thankfully we have never had to use it. But these days we want to build up our credit, so we're thinking of using it - and paying it off the next month. Oh yes, credit cards can get you in deep doo-doo if you don't watch yourself!
@Zer0Stats (1309)
• India
20 Jan 11
Yes,as long as you can manage it wisely than it can be a good tool!
@kingparker (9675)
• United States
14 Apr 11
You know what, that is exactly what we need for our spending habit. We need a little more education on our credit card spending. It is a borrowing habit, keep on going and going. Don't be seduced by the fact that we have money available for you to take, and spend it all without repaying them back. Think about the interest rate and other factors, it might actually scare you off.
@kingparker (9675)
• United States
26 Mar 11
I have to say, you made a smart move already. Well, it won't be necessary to cancel your cards, just leave one or two for emergency sake. You won't need to spend money on those credit cards, just use it once within a year to keep it active. You should keep on saving and paying off the debt, that is what I am doing right now.
@rosegardens (3035)
• United States
26 Mar 11
I suggest you keep one card active. Only put on it what you can pay off in a month. Use it as cash; soon as you can get to the bank to make the payment right after you use it, do so. It is safer than carrying cash, you can always have the card de-activated if it is stolen. If you only spend on it what you can afford to pay, then you will not run into the problems of paying off the minimum balance and paying such exorbitant fees.
The reason: without established and current credit, in later years you will not be able to buy a car or finance a house. I know a few folks that refused to get into the credit card jungle and they cannot purchase anything requiring credit, such as cars, homes and even renting an apartment can be problematic because they want a credit report. Believe it or not, there are some that could not even rent a decent apartment for lack of credit!
It is commendable you desire to keep yourself out of debt and I admire that. However, canceling all of your credit cards will lead to problems down the road.
