Breaking the Habit: How to Stop Using Your Credit Card
When persons need support in credit restoration, credit repair, or debt healing, there is usually more to the story than a credit card bill or some loan that they cannot manage. And that was the case with Sandrine. She came to #FinanciallyFocused for help with a $3 million credit card balance and she shared that she was drowning. The debt collector was calling her weekly and she was simply stressed and not sleeping. Could we help her to create a plan to get rid of the debt? The first thing was that we needed to understand how she had a credit card bill for $3 million as credit card debt is one of the most expensive debts you can access. In Jamaica, banks charge as much as 60% interest on the balance. You know your debt is rising but still cannot stop using your credit card for purchasing items. Several people get easily dependent on credit cards for everyday expenses and impulsive buys. The fact that you are borrowing money from the creditor for your purchase might be tempting, but the truth is: you must be able to pay it off on time. Neglecting those bills can cause headaches in the future. You might get malicious letters from your creditors, or even receive threatening telephone calls.
Close, Shred, and Leave
If you really want to avoid those from happening altogether or if you are starting to drown in your debt, you have to stop credit card usage. Fortunately, there are several ways on how to.
Firstly, many people would agree that closing your credit card account is the best way possible. One and simple call to your cardholder is sufficient enough to inactivate your credit card. Doing so might even quiet down that nagging feeling and desire to purchase items using a credit card. Just think that there might be one situation wherein the clerk says your credit card has been denied; the embarrassment from that situation is reason enough for you to inactivate your credit card.
Shredding is also an excellent way to break the habit completely. You can use an office shredder since it works great on plastic as it does on paper. Since your credit card is shredded into pieces, there is no way that you can swipe it. However, if you do not have a shredder, scissors are great too. Just cut the card into small pieces and make sure that the credit card number cannot be identified by potential thieves.
Another excellent way to stop using credit card, especially when you go out of the house, is to leave them. If closing or shredding is not your style, try taking your credit card out of your wallet when you are about to go shopping. In this way, if you have the urge to buy something you really do not need, you have to think twice before buying it since you are about to use your own money.
The Shock and What Your Can Do About It
You have been using your credit card for your expenses but have you ever thought about the total amount of
cash you spend in interest alone each year? More so, the duration of time it will take you to just pay off
your credit cards might shock you. It is all about the numbers and these will put you into shock and can make
you think twice before using that credit card again.
For instance, if you have a balance of $1,000 and an interest rate of 14%, it will take you about four and
a half years before you can pay it off; that is, if you are making $25 in payments every month. By the
time you pay off the balance, you will have paid a total of $347.55 in interest.
Since you know what credit cards can do, you might want to stop using it once and for all. Learn how to
say “no” since this kind of discipline can help you stop impulsive buys, thus stopping the use of credit
cards. Always think twice about swiping that credit card for your purchases and you would not have to
think about repairing your credit in the future.
For more info on how you can profit from underused assets, you can find all the details in my latest course at https://www.udemy.com/course/power-up-investment-returns/learn/lecture/24907130?referralCode=E37DB4D3CD41A18E3685#overview but I’d love to answer any questions you have about these quick tips in the comments below, so share any you have!
