REDUCING THE USE OF CREDIT CARDS
Once
you begin conquering your credit card balances, the worst thing to do is to
begin using them again. Here are four ways to stop using plastic:
Lock Up or Cut Up Any Credit Cards:
One of the best ways
to stop using credit cards is to not carry them. However, everyone should have
access to at least one card in case of an emergency. There may be times when a
large amount of money is needed immediately. For example, to purchase an airline
ticket in a family emergency or rent a car. An innovative way to remind yourself
of this is tape a piece a paper on each card with the words: "FOR EMERGENCY
USE ONLY".
Write Checks: Get in the habit of writing
checks:
This offers two advantages: The first benefit is you can't make a
purchase unless the money is in the account. This may eliminate frivolous
spending. The other advantage is it will wean you out of the credit card habit.
Use Debit Cards:
A debit card is similar to a credit card
with one distinct difference. Whenever you make a purchase, money is subtracted
from your account. You cannot spend more than what is in your account
Put a Reward System in Place:
Every time a credit card is
paid off, treat yourself to a long walk on the beach or a dinner out, but not a
shopping spree to put you in more debt.
Remember, you did not get in
debt overnight and you are not going to get out overnight either. Keep track of
your Cashflow and you can become Rich Dad instead of Poor Dad.
Be
Prosperous!
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