Best Answer: Stop using your credit cards.
“People change their lives only when they say, ‘I’ve had it!’” – Les Brown
Think you can’t exist in the 21st century without credit? Do you have at least one credit card? Did you sign up just for the bonus miles or cash back? Sounds like it’s time for you to perform a plasectomy. (That’s what Dave calls cutting up your credit card.) You’ve heard all the lies, now here are a few facts about credit.
Myth: No on can live without credit cards.
Fact: Actually, 24% of American households are getting by just fine without any type of credit according to a Federal Reserve survey of consumer finances. Try using your debit card or cash instead. If millions of Americans can live without credit, so can you!
Myth: Credit cards help me get airline miles, cash back and other discounts.
Fact: Yeah, credit cards also help you get into debt. Consumer Reports say that only 25% of airline miles are ever redeemed – and credit card companies know it. Earning a
few airline miles is not worth thousands of dollars in debt.
Myth: I can just pay off the balance at the end of every month.
Fact: You’ll be in the minority. According to CardWeb.com, only 40% of credit card users pay off their balance when they receive the bill. Plus, overspending is inevitable when you use a credit card. It’s just easier to swipe a piece of plastic than it is to flash the cash.
Myth: “Ninety days same as cash” is the smart way to buy.
Fact: “Ninety days same as cash” is a scam. Retailers know that most consumers won’t pay their balance in 90 days, which means you get stuck with outrageous interest rates and back charges to boot.
Myth: I’m required to have a credit card to buy a house.
Fact: Several quality mortgage companies provide underwriting which allows you to purchase a home without a credit card. If your mortgage lender requires a credit card for your home loan, run – don’t walk – to a lender who will actually help you achieve freedom from credit.