Many people think of credit cards as essential. They will tell you that you must have at least one card in your wallet in an emergency. This opinion makes sense when you run out of gas in the car and you have no money. A credit card is then very useful.
In the same way, you can live without credit cards if you plan your expenses and take the trouble to always have other forms of payment in hand. In fact, if you get there, it will be beneficial for your personal finances. Mismanagement and misuse of credit cards cause debt. So indebted people should do without a credit card when planning their finances.
Here are some tips for living without credit cards.
1. Find a way to buy online.
Credit cards are considered the safest and easiest financial tool for online purchases. Fortunately, those who cut their credit cards have other solutions. Debit cards also work online, but their level of fraud protection seems a bit more fragile. How can you limit the risks? You will use a prepaid card with a low balance for online purchases. Thus, a stolen card number will not give thieves direct access to your chequing account.
2. Use store gift cards.
If you want a convenient way to buy, think about gift cards. More practical than cash, some stores even allow you to register these cards online. In this way, you can report them stolen or lost, and thus get a replacement if necessary. This gives you a bit of the benefits and protection of a credit card without risking too much debt.
3. Plan a loan if necessary.
And if you have to borrow? Sooner or later, everyone faces a financial emergency that requires a loan. You can, at this time, consider the personal loan online as an easy solution. These loans, almost as convenient as credit cards, do not require a full credit check, and the application process only takes a few hours. However, because you can repay them in installments, you will not accumulate debt.
4. Save for tough days.
Finally, you can limit your borrowing by creating a savings account that you can use in an emergency. The money in this account will not necessarily cover all the unexpected, but it will reduce the amount you will need to borrow from the online provider.
With these tips and a good organization, you will easily manage your personal finances without credit cards.