Credit is not everyone’s friend whereas there are some people that can’t live their life without a credit card and they actually use it quite efficiently. If you are paying the credit card bills on time, it is a great tool to boost your credit score that will be quite helpful in mortgages, getting a loan on lower interests, etc. It comes with a number of negative points as well. There is a majority who believes credit cards are a bad idea and it pulls you in a stressed life of debt.
If you are a person who has bad spending habits, carrying a credit card will be a nightmare. It can dismantle your whole financial stability and you will want to shift your life-style where you live only on available funds. You can think of it this way, no matter how much you spend, you will have to pay it back. Wouldn’t it be wiser to save some money and then spend it wherever you want without having any stress about paying it back? There’s a lot of people who haven’t even applied for a credit card their whole life and their financial status is much stable.
Advantages Of Living Your Life Without Credit Cards
Some Key Benefits Of A Credit-Free Life
It sounds much better to live a life where you don’t have to pay off any debt. If you ask me, there are always some benefits and drawbacks to everything, and you should also go through the drawbacks/disadvantages of not having a credit card. After going through the benefits, we will have a brief look at the disadvantages too.
No Debt
The best benefit of living a life on a debit card is that there will be no debt under your name and you will not have to think of any additional expenses like due date, o/s balance, penalty, APR, etc. You will not have to pay any interest on any of your monthly bill in case you can’t pay a month.
No Debt
No Overspending
When you have a credit card, you get a fantasy that you can spend any amount you want to. It will also make you spend on stuff you can’t afford. You will also get stuck in a never-ending cycle of borrow & repay. When you rely on a debit card, it will give you a much better idea of how much to spend.
Making Budgets
When you are all on your own, budgeting is going to help you significantly. When you have a credit card, you never think of making a budget. Whereas when you are completely on cash, you will need to plan and spend according to your priority. Budgeting will also allow you to have some savings for your future.
A Glance At Some Cons!
After going through the advantages that you get by living a cash-only life, you should also be aware of some of the cons that may impact your decision.
You will have nothing as a backup that you can use for some urgent needs. (Budgeting will help you save some extra bucks for these times though.)
There are many societies and rental apartments that need your credit history to rent you an apartment. Not only apartments, but there are also multiple e-commerce sites, airline reservations, etc., that don’t allow any other payment modes.
On a debit card, there will be no offers that you can avail of, such as cashback, reward points, etc. Living your life on cash will also not provide any solid theft protection.
To conclude, I am going to recommend not relying completely on credit cards. If you are availing of certain services that require a credit card, you should limit its usage to that only.
