Free Yourself: Living Without A Credit Card

Does the title of this article alone give you anxiety? The thought of living without a credit card can put the most balanced people in an absolute tailspin. In today’s society, credit cards have become such the norm, making it hard for many to imagine functioning without one altogether. We have been taught that credit cards are good for an emergency, safer to use, needed when traveling, and downright mandatory in some instances. But what if, just for a moment, you considered what life would be life without a credit card?

Let’s also be clear and remind ourselves that debit cards are NOT credit and are totally still in the picture. The convenience of a light, plastic card in place of crinkly paper and small metal coins? Yep, still a go. The beauty of a debit card (without overdraft lines of credit of course), is that you can only charge what is currently in your account. If you don’t have it, you can’t spend it. Same goes for cash. If you physically do not have the cash in your possession, either you don’t get it, or you get creative in how to obtain what you need.

Without a way to live above your means, you stay within the walls of what you can afford. And if you want something, you save or budget for it. When you lack the convenience of a credit card and a debt mindset, you become resourceful in getting what you need. Whether you find it for sale cheaper, buy it used, make it, or barter for it- you can still get what you want. However, on that note, there is a funny correlation between spending money you don’t have on credit and buying more than you use or need. Once you start using cash (or debit), you become more aware and careful about what you purchase. Many people view their credit cards as a safety net or an emergency fund. However, this type of thinking can get a person in trouble, fast. First, credit companies can take your credit away at any time they want. They can reduce your limit or close your account on a whim. This is NOT a very secure emergency fund. On top of the instability of the availability, you will be paying interest on any emergencies, making an emergency a financial catastrophe. So instead of relying on credit to do the work of saving for an emergency, the one that a credit card issuer can’t take away at a moment's notice or charge 24% interest on.

You will also notice when you start using cash, that all the sudden, there are more deals and options available to you. When people (more than big box stores) see cash, they are typically more willing to negotiate. Many companies will offer discounts for paying cash up front as well. By saving ahead, you can keep raking in the savings above and beyond what you save on interest.

Are you low on cash and not using credit? Keep chipping away at savings and eventually, you won’t be low on cash. You may also notice your income increase as you become used to paying cash and feeling less burden and stress around money. In the meantime, try trading or bartering for what you need. Apps like Offer Up and Letgo allow you to work out trades with people who have what you want in addition to the standard cash payment. It doesn’t hurt to ask if a person is willing to trade and offer something they may need.

Debit cards typically carry the same security features and protections as a credit card. Just double check with your banking institution for peace of mind. Using payment systems like PayPal or similar setups can help minimize the number of places you enter your card info directly online. Want extra peace of mind? Maybe consider not keeping every penny you have in checking, that way if there is an issue, you have money put aside while any fraudulent charges get worked out.

Not using credit can boost productivity (when you know you need cash you don’t get lazy or complacent around getting it), creativity, and your overall finances and mental health. Go ahead, give it a whirl for a month and try the credit card free lifestyle on for size- you never know unless you try!