5 Ways To Not Use Your Credit Cards
These tips are for those who are having trouble controlling their credit card spending but do not want to cancel their credit cards. (Cancelling your credit cards can lower your credit score and reduces your leverage if you need to negotiate with the credit card company.)
- Don’t carry your cards-If you have to return home and grab your credit card before you make a purchase it should give you time to reflect on whether you really need to make that purchase. I only carry my credit card(s) if I’m travelling or am going to use it for a specific purchase. I’ve found this method very effective in reducing impulse purchases.
- Freeze your cards-This is an old trick. Just put your cards in a large plastic bowl or glass filled with water and place it in the freezer. Since it will take a while to thaw you’ll have plenty of time to think about your potential purchase.
- Give away your cards-Give your cards to a trusted friend or relative. Having to ask for your card back and possibly explain what you are purchasing should make you think twice before making an impulsive purchase.
- Cut up your cards-With your cards cut up you shouldn’t be able to use them, except possibly online. Once you’re confident that you can control your spending you can ask for a replacement card.
- Wrap up your cards-Wrap your cards up in a piece of paper like a birthday present. As an added measure write a financial goal on the outside of the paper.
Bonus method-This method is probably not a good idea for those who are having trouble controlling their controlling their credit card spending. Put a large 0% balance transfer on your card. You won’t want to make a purchase after that because you will usually have to pay off your entire 0% balance before you can pay off the purchase and stop the interest charges.
I’ve used a couple of these methods and found them very helpful. If anyone has any other suggestions let me know and I’ll add them to the list.
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I don’t know any friends I would trust holding my credit cards. I wouldn’t even give them to any family member! Well, maybe to my wife’s parents. They’re very trustworthy.
[...] Tight Fisted Miser is in the Carnival of Personal Finance which is hosted at Stock Market Beat. My entry is “5 Ways To Not Use Your Credit Cards.” TFM also has an entry in the Festival of Frugality which is being hosted by Lazy Man and Money. My post is “Frugal Foods.” I encourage you to check out both carnivals, there are plenty of good posts on both of them. [...]
[...] Cut up the canceled cards, because they’re not doing you any good anymore, and cut up the one working one, as well. Ok, you might not feel you’re able to do this. I still haven’t been able to cut up my credit card, even though I know I should. But, I still don’t carry it with me. Even if you don’t cut it up, at least don’t carry it in your wallet! Find some way to not use that credit card. [...]
[...] So, back to the catch? It’s a credit card! If you’re not responsible with credit, then it’s a big catch. Can you still get this card for the $30 off if you’re bad with credit? Yes, but you have to do it very carefully. Get the card, get the $30 off, pay any extra on your bill when it comes, and CUT UP THE CREDIT CARD WHEN IT COMES AND NEVER USE IT (or use some other method for not using your card). If you use it anyways, and get yourself into trouble, it’s not my fault. I told you how it is! [...]
[...] To Credit Or Not To Credit July 9, 2007 Filed under: One Day At A Time — Ms Broke @ 5:01 pm Many, many established PF bloggers have posted about saving / making money playing the 0% balance transfer game. I’ve been thinking about this quite a bit over this weekend and in some of the really boring meetings I’ve had today. [...]