If you’ve read even a handful of personal finance articles over the past few months you’ve undoubtedly come across this headline already. You’ve heard plenty of tips about how to minimize the damages or adjust credit usage to life on the new frontier. What is shocking however is that I don’t hear more people saying ENOUGH already!
What would you do if you found out your cell phone company doubled your rates? Or if your local grocery store started charging you for each trip down an aisle? People have been outraged with much slighter changes, so why is it we’re all so happy to adapt to the credit card companies? Consumer Reports recently published an article stating that 100% of top banks credit cards are guilty of deceptive and unfair practices (under the Credit CARD Act final phase, which becomes active in February). ONE HUNDRED PERCENT! How is it that the necessity for credit has become so ingrained in the American psyche that we’ll put up with anything?
Just because you think you’re a model customer doesn’t mean you’ll get fair treatment either. Recently Citi closed unsuspecting people’s gas credit cards with no warning, leaving them stranded at the pump. Bank of America is adding fees for paying your balance on time every month. No really, for paying your balance ON TIME EVERY MONTH. Why do you want to do business with companies like this?
The good news is there IS another way. Now what I’m going to propose here requires you to pause, step outside your current thinking patterns, and consider this: Don’t use credit cards. That’s it. It’s that simple. My wife and I quit using credit cards years ago, and we’re doing great. We recently bought a house and no one seemed concerned that we didn’t have any credit cards. I spent exactly zero hours over the past year pondering my credit card rates. Not a single dime of my hard earned money went to payments.
Telling people you don’t have or use credit cards elicits quite a range of responses, the most common being “really? (accompanied by confused face).” Yes, and it’s awesome! If you’re tired of reading articles about how to get the most out of your credit or you’re simply tired of doing business with companies that treat you like dirt, then stop using credit cards! Cut them up. Close the accounts. Never look back!
