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.

Difficulty: Moderate

Instructions

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.

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[enigmamusement]

on 5/28/2009 Like it or not, credit card is people's investment wanting interest earned for keeping money in bank account. You are just a customer statistic to the bank. Our Deity owns everything including the plastic fantastic. The credit card is the quick choice no-fuss personal loan for those unexpected emergencies like bills, bills and more bills. The only thing not to lose is your mind. Total peace right now, you deserve the best ever reward from our Lord Saviour Christ whatever little money you got, Bro or Sis (if you are female)

[citizen477]

on 5/11/2009 The goal is to not go over more than 30% of your limit consistently. For example, if you you have a $1,000 limit on your credit card, do not spend beyond $300. You could go over in a few statment/payment cycles, but do not maintain a balance of over 30% of your limit.

[goodmonica]

on 2/10/2009 It is ok to us one credit card to pay off another to help consolidate unless it's for the sake of doing more shopping.

[chelyrenee]

on 2/4/2009 If you don't use your credit, then you will have a harder time establishing other credit, like buying a car or house. The creditors want to see if they can make money off of you, not take advantage of you. You have to find the responsibility in yourself to use your credit wisely. Keeping a low balance, not too many credit accounts and ALWAYS paying on time goes a LOT LONGER WAY then just stopping all credit use.

[Cherrie]

on 11/15/2008 I want to give it five stars, but it takes only three.I have gone through mail fraud by a neighbor during the wildfire time around San Diego with my only credit card. It took six months of agonizing calls and writings with the bank not to have to pay the withdrawn $ 1,049.50. Police was involved too, but could not help. That cured me. We need much less than we think we need. If we sleep only one night over a planned purchase, mostly we can do without.