How to Live Without Credit Cards

Moving from credit card spending to cash spending is difficult, but it can be done.

Difficulty: Moderate

Instructions

Things You'll Need:

• Paper
• Pencil
• Calculator

1. First, list all your bills on paper. Everything from utilities, rent, food, credit card payments, etc. to yearly expenses such as car or house insurance. Add up the total of your bills and compare them to your monthly income.

2. Hopefully you will have more income than bills. If you don't then you need to create a plan to make more money or decrease your bills. I always try to decrease my bills because making more money just means working longer hours.

3. Certain bills cannot be changed, such as rent or mortgage. On the bills that you do have control over, such as utilities and food, try to find ways to lower them for the month.

4. If you have credit card debt, stop using them for unnecessary items such as going out to eat, taking vacations, etc. Then make a list of your credit card debt. Take the credit card with the lowest balance and put as much extra money as you can towards it. When it is paid off, put that money towards your next lowest credit card. By paying off the lowest first, you have a sense of accomplishment and one less bill to pay each month.

5. Continue to do this until all your credit cards are paid off. It may take a long time but in the end it is rewarding to know that your paycheck isn't going to creditors. Then use cash when you need to purchase something instead of your credit card. Carry just one credit card with you and use it only for emergencies.