How to Break the Credit Card Habit

Breaking the credit card habit is very difficult. You can do it, however, with a healthy dose of dedication and perseverance.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Bank Account
• Personal Financial Software

1. Discard credit card offers received in the mail. Shred or tear up the offers - to keep them from being used fraudulently by anyone else - and throw them out.
2. Discern between luxury and necessity, then cut back on credit card use for luxuries.
3. Commit to paying bills in full each month or to not using credit cards at all.
4. Throw out one credit card a month until you're down to a couple of manageable ones.
5. Use cash instead of plastic.

Tips & Warnings

• If you stop using a credit card, it won't be canceled unless you call the company and request cancellation.
• Debtors Anonymous has local chapters all over the country for addicted overspenders.
• Keep credit cards somewhere other than in your wallet.
• Resist the temptation to pay off one credit card with another.
• Avoid withdrawing cash using your credit card. The transaction fees are high, and interest begins accruing immediately.
• Avoid using the checks that are issued by credit card companies. These checks are treated just like cash withdrawals, meaning there are transaction fees and high interest rates.