Sunday, July 10, 2011

This Guy is Cancelling His Credit Cards: Should You?

Many of us now pay for everything with credit or debit cards. But, are they really simplifying our lives? 

Brett Arends thinks not. I read his article 10 Reasons I'm Cancelling My Credit Cards at Yahoo! Finance and it struck a chord with me.

I can't help but think his ideas translate to a smart way to declutter your financial life and save money.

I shop with a debit card usually, even for groceries. I know when I plan ahead and use cash, I spend less. Ideally, I'd use cash all the time.

I want to write more about this topic, but feel it's an article that needs a good amount of research. And, I'd like to get your thoughts.

So, tell me, do you use cash or cards for most purchases? Which do you think is the best, simplest way to operate your family budget?  Why? Have you blogged about this topic yourself? If so, send me the links so I can include them in my article!  

2 comments:

  1. I try to carry only cash, but I do use my debit card when I want to spend more than I have on me (proof that cash really saves you money!). My CC company cancelled my card, b/c I never used it -- I wish I'd used it occasionally or cancelled it myself.

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  2. Quite frankly, I think it's mainly irresponsible people who really NEED to get rid of their credit cards. I know lots of people swear by Dave Ramsey's "cash only" policy, but if you live somewhere with a relatively high cost of living, it's not really reasonable to expect to live without credit. If you need to build credit (for instance, there is NO WAY I will ever be able to pay cash for a home in Southern California, EVER), there's no reason you shouldn't use a credit card.

    If your credit cards have fees attached to them, you're an idiot. Those cards need to go, and that bit seems like common sense to me. Some people might view ditching the cards as simplifying. Personally, it sounds like more work to go get a "prepaid credit card" so that I can order things online.

    The only really valid point I see here is the lowered risk of identity theft. Meh.

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Thanks!