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In this day in age, it seems that everyone owns a credit card…or ten. Although credit cards do have obvious benefits, including convenience and perks, they can be quite detrimental to your overall financial standing. A lot of the time, those who rely on credit as their main source of payment tend to spend far beyond their means and end up paying a fortune in interest fees. This could potentially lead to a great deal of debt, which only worsens as the monthly payments increase. There are multiple solutions to this, however, and believe it or not, you can survive without a credit card. Here are a few tips in doing so.

Use your debit card. 

Debit cards are a great substitute for a credit card because it is just as convenient and you don’t have to worry about spending more than you have. The great part about this is that there are no accumulated interest rates! Worried about being unable to make purchases online? Now with the introduction of the VISA Debit, online shopping is available, with payments made directly from your chequing account.

Budget your money for the week. 

When you get rid of your credit cards, make a list of expenses and items that you need and differentiate this list from things that you want. Create a few envelopes if you think that will be beneficial to you, each one with a different item (utilities, rent/mortgage, entertainment, groceries etc.). Allocate a certain amount of cash to each and do NOT take out more.

Create an emergency fund. 

One of the main benefits of having a credit card, is the fact that they come in very handy in financial emergencies. If you don’t want to rely on credit cards for these types of situations, ensure that you start setting aside funds specifically for this.

Get a prepaid credit card. 

If you feel you really need it, get yourself a prepaid credit card. Basically, these cards allow you to set your financial limit according to your budget, so you can upload as much money as you need. The great benefit of these is that they are available to pretty much anyone who wants one, regardless of credit rating and financial standing.

We are Licensed Insolvency Trustees and have extensive experience in addressing financial issues and challenges as well as all the questions you may have, including managing credit. Feel free to email us at info@dodicklandau.ca, call us at 416 736 4357 (HELP), or fill out the contact form on this website, to book a free, no obligation consultation with one of our debt solutions’ experts.

Make an appointment today, and we will provide some solutions specifically tailored to your situation. We look forward to assisting.