Thomas Kelly
3 September 2020
Have you ever thought that you should pay off your credit card debt and never touching plastic again, but something was always on your way?
Have you got too many credit cards in your wallet and stuck in a bad habit of using them for everything and paying only minimum payments?
You are not alone!
According to a recent study, over 1.9 million Australians are having trouble paying their credit card debts. Pretty overwhelming facts, are not they?
Are you still looking for significant reasons for paying off credit card debt?
Here they are:
1. Credit Card Bill
Whether you have got your job or not, you will never have to worry about how you are going to pay the credit card bill.
When credit card bills do not come in the mailbox or email, if you don’t have to worry about where you are going to get the money to pay them.
You can spend your time having fun and relaxing on the furniture that you paid cash for, instead of deciding which balance to transfer, so you can make a minimum payment.
You should pay off your credit card debt, then going to the mailbox is fun when it is not full of credit card bills.
If your mailman only delivers packages, friendly letters and junk mail, you don’t have to worry when you open the box.
2. Credit Card Interest
Your hard-earned pay will never be spent on credit card interest.
You should pay off your credit card debt because credit cards cost a lot.
There is no regulation on the amount of interest a credit card company can charge.
The new credit card laws require issuers to disclose when they are going to raise the rates, but it doesn’t limit how high the interest rate can be.
Paying off a high balance on a high interest credit card is extremely stressful.
It can even seem like an impossibility.
When you choose to live by cash only, those worries about paying years of interest for a cup of coffee disappear.
3. Can’t Pay with Cash – Don’t Buy It!
You will live within your means because, if you can’t pay for it with cash, you don’t buy it.
You will be happier to know that everything in your home is bought and paid for.
When you pay for things with cash, you pay the sticker price.
Credit card interest adds to that price exponentially.
Buying an expensive item with a credit card may make you happy, but only until the bill comes month after month with mounting interest charges.
When you stick to only buying what you can pay cash for and live within your means, you will be happy knowing that you worked for everything you have.
Need even more reasons for paying off credit card debt?
4. Increase Your Self-Confidence
Successfully saving for big ticket items increases your self-confidence.
Credit card companies create a catch-22 situation for their customers.
It is hard to save money when you have to pay credit card bills every month.
If you don’t save your money, you can’t buy with cash.
When you live without credit cards, you can take pride in the fact that you saved for the big ticket items in your home.
You should pay off your credit card debt. Imagine how good you will feel in January when you know that you do not have a single credit card bill related to holiday shopping.
5. Peace of Mind
The peace of mind that comes from being free of credit card debt is priceless.
Over a million people file for personal bankruptcy every year.
Many of them feel forced to file because of unmanageable credit card debt.
Some people even get themselves into trouble by using the option of fast money from an advance on the credit card.
Excessive spending may be fun, but the fun is short-lived, unless you are independently wealthy and can pay off credit card debt every month.
Living without credit cards gives you the freedom to live your life without the stress of credit card debt and the threats from credit card companies if the bill is late.
