Your Wealth, Health, And Lifestyle Newsletter

Best Way To Stop Credit Card Addiction

By: Jason Markum

We are a credit card country. Buying on credit is a way of life for most Americans. We don’t often stop to think what the long-term impact of the purchases will be; after all, it’s just a few extra dollars a month on the credit card statement!

But if there’s one thing that this great recession of 2008 and 2009 has taught us it’s that buying on credit should be kept to a minimum. The problem is, most of us are so used to spending money on credit cards that it’s hard to stop! Most of us don’t even carry money around anymore, we just whip out the credit card!

It’s especially bad if you are over your head in credit card debt. How can you get out from underneath this mountain? Luckily most of the problem has to do with simple money management. Knowing which bills to pay when, and which credit cards to consolidate, can solve a large chunk of the problem.

But even if you’re not in trouble with credit card debt, you may still want to consider cutting back on credit card use. Unless you pay your credit card bill in full each month, in which case you can stop reading this article right now!

So what do you do to get out from underneath this crippling credit card addiction? You may be tempted to simply cut up your cards and throw them away. Unfortunately this is not always possible because like it or not we live in a credit card world.

So what should you do? I have a few suggestions… first of all try to consolidate all of your cards into just two or three main cards. Don’t close the accounts of your other credit cards, just transfer the balances away from each card and onto the card that you designate as one of your two or three main cards. The idea here is to shop around for the lowest interest rate. Keep your other cards open because once you take your balances off those cards, they may contact you via mail to offer you lower interest-rate offers in order to bring your business back.

By playing each credit card off one another, you can get a much lower interest rate… sometimes close to 0% for several months at a time. If the cards don’t contact you, call them! Tell them the rate of interest that your other card is charging and ask them to beat it. They almost always will.

Once you’ve consolidated outstanding credit to 2 or 3 main credit cards you’re only halfway there. The next step is to choose one credit card to use daily for regular purchases. I’m talking about groceries, gas for your car, movie rentals, and basic things of this nature.

The idea here is to pay off this credit card in full each month. So only put things on this card that you are able to pay off each month. Don’t use this card to make large purchases, for instance don’t use it to buy a new TV or a lawn mower or something like that. From now on you must pay cash for large purchases. And if you don’t have enough cash, you don’t buy the thing until you do.

Just putting these 2 Ideas into Place can go a very long way to getting over credit card addiction…

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