Can You Live Without Your Credit Card?

Credit cards are everywhere we look. From the billboards along the freeway to the ads on our favorite websites, we just can't escape credit cards. We as a society have become so dependent on them that we often wonder if we would even be able to survive without them. They are our lifeline when we're short on cash and our friend when the furnace breaks. You say that you couldn't live without yours, but could you? The answer is YES! You may think that you can't, but the truth is, you can live without it, and your life will probably be better without it.

I know what you're thinking. "Is this guy crazy"? No, I'm not crazy, I just know that credit cards are not all that we make them out to be and that they aren't essential to live. In fact, I think we'd all be better off if credit cards didn't even exist. Yes, we'd probably have to go to the bank more often to get cash, we wouldn't be able to enjoy the airline miles, the cash back or the rewards, and we certainly wouldn't have that free t-shirt they gave us when we signed up for the card, but we'd be alright.

If we didn't have credit cards, how would we buy stuff? We'd buy stuff the same way people bought stuff before credit cards, with money we actually have. Also, I'm not opposed to keeping around debit cards since they work only when you actually have the money in your account. So we'd use cash and debit cards to buy anything that our hearts desire, as long as the money is in the bank. Don't have the money to buy some new toy? Good News! There is a cure for that! Hold off and save up until you do have the money! By then, you may not even want that toy and you will already have the money in the bank the next time you come across something that you "must" have.

The truth is, credit cards have not been around for very long in the grand scheme of things. Only in the last 60 years have they even become a part of everyday life. Before that, people only bought things they could afford. Occasionally a store would let you put things on a tab, but only after you had established a relationship with them and they knew you were good for it. As long as stores sell things for money, you'll still be able to buy things with cash or a debit card, and that is one thing that will never change.

Like I said before, without credit cards we will no longer be able to accumulate the airline miles, the cashback rebates, or the rewards, but I ask you this, how much have you paid your credit card company in interest? Could you buy a plane ticket or something even better than you last reward with that amount? Most people would answer yes. Some people are very responsible with their credit cards and are able to pay them off every month, but most people end up paying interest on our cards which negates any benefit that the card is providing.

Ok, you got me. Credit cards are great when emergencies happen and we need money now. Oh, but wait, thats also what an emergency fund is for. An emergency fund is money that you save in an account that is just for emergencies. It should consist of cash in the amount of approximately six months worth of your household's expenses. If the furnace breaks, you're covered. If you lose your job, you're covered. If your car breaks down, you're covered. I think you get the idea. Just one thing though, keep in mind, the emergency fund is NOT for those shoes that are on sale that you just "have" to have. That is not an emergency, no matter how you try and spin it.

So I can live without a credit card, but why should I? What is in it for me? The answer is the peace of knowing that you don't owe any money to credit card companies and the assurance that with your emergency fund you're covered should anything bad happen. Imagine not having to worry about how you're going to make the payment this month and how you're ever going to pay it off completely. Imagine not being tempted to buy that new toy when you know you really can't afford it. The point is not to live without a credit card, but to live without debt entirely. Being debt free is a feeling that you can't buy and the peace of not owing anyone money is priceless. So start paying off all that debt, build up your emergency fund, get rid of those credit cards and start enjoying financial peace.