Struggling to ditch the plastic in the new year? We get it – there are lots of tempting reasons that you think you need to keep your credit card around. But how much of those reasons are actually true?
Let’s tackle the top five myths holding you back from getting rid of your credit card, and discover why banishing the credit card is the best financial move you can make this year.
I need it for emergencies
Credit cards are a terrible emergency fund. With sky-interest rates and credit limits, you’re much better off scraping together a few dollars each month to build an emergency fund, rather than counting on your credit card to get you out of a bind. Even a fund of $1,000 can be helpful when a surprise expense arises!
I can’t build credit without it
Want to know the dirty little secret about credit? You. Don’t. Need. It. Credit just measures how you’re handling the debt you have – not how much money you have in the bank, or how much you’re making in your current job.
The rewards and cashback are too good to pass up
Sure, it may seem like free money – but how much are you spending to get those rewards. Spending money to get money is never a good idea. Plus, the extra fees you pay for elite cards with fancy rewards can set you back hundreds of dollars that you could just keep for yourself.
I can’t pay for my basic expenses without one
Let’s stop for a second. If you can’t pay for basic expenses, it’s time to take a look at where your hard-earned money is going any month. If it’s not to your expenses, it’s probably paying off your debt – and that mountain is only going to grow if you don’t cut yourself off from your credit card as soon as possible.
I pay it off every month – so what’s the harm?
It’s tempting to think that credit card debt isn’t a problem when you’re paying off the balance. But all it takes is a month or two of missed payments, and suddenly you’re paying interest on a debt you never intended to have. If you’ve got the funds to afford your expenses in the first place, let’s just cut out the middleman and pay for things right from the start!
Let’s make 2022 the year you break free from your credit card and find the financial freedom you’ve been searching for!
Feeling buried by your credit card debt?
We can help! With Strong Tower Consulting, you’ll:
- Create a plan
- Learn to manage money
- Build wealth
Let’s take the first step together in 2022! Schedule your FREE session today, and learn how you can get out of debt and pursue financial freedom!