I made a tough decision not too long ago. I decided to give up my credit card habit. Think about it, I don’t need to buy four pairs of shoes at one time, nor do I need to buy three more purses. Bye, bye retail therapy.
Statistics show that in March 2010 revolving credit in the United States totaled $852.6 Billion dollars, 98% of that is debt. There were days when I felt that most of that debt was mine. It was just time to go back to the old way of doing things.
When my Colombian mother-in-law died ten years ago, she left a house that was paid off, fifteen thousand dollars in a safe deposit box and various other liquid accounts. This was a woman who never earned more than minimum wage, as a seamstress, and sometimes spent months unemployed while the coat factory went on seasonal hiatus. What was she doing right?
On September 15th, Being Latino posted a blog by Carlos Macias, The Battle Against Racism Starts from Within. It was a great blog, but what got me right in the financial gut was the link to a photo essay. As I flipped through those pictures, the captions showed how much money they were sending back home. A fast food delivery worker was sending five hundred dollars a week while a waiter was sending home three hundred and fifty dollars. What are they doing right?
They are all paying cash for their purchases and living a simpler life. We all pay for things that are a convenience but not a necessity. Do we really need to pay twenty-six dollars a month for a cable network when we only watch two series on the network? A recent article indicates that the use of credit cards in the United States is down and the trend may continue when financial stability improves.
I’m going to start improving my financial stability now. My healthy credit rating may take a hit, but when I show up to buy a new car with half of the purchase price in cash, I don’t think they’re going to turn me down. If you see me in the Coach store, be assured that I’m checking out the purse that I’m going to buy at the outlet next year.
About Eileen Rivera
This is so true!! Plastic is so convenient especially since payment isn’t due until later on… I ditched my credit cards early this year and it was the best thing I have done in my life!!!!
… The only downfall?? I buy all my shoes slowly lol so now I wait for those amazing stilettos until I have the cash on hand!
Lord knows shoes are my addiction!!
This article is “right on the money”! I started my divorce from credit years ago and am always looking for creative ways to lower costs, live within my means and stay away from doodad purchases. Glad to be strong enough to just say no!
You are absolutely right! Great financial advice! If we don’t have the cash to buy it then we can’t afford it. By putting it on credit cards we just dig ourselves into debt. The access to money we can pay back later only leads us to purchase things in excess…many which we don’t even really need. I am as guilty as charged. Will try ditching my credit cards from now on.
Nice piece Eileen, Thankfully I am generally good about not using my credit card. Saving on the other hand is another story. It’s interesting because there is an article on credit card usage on Yahoo today. I’m posting the link. Thanks again.
http://finance.yahoo.com/banking-budgeting/article/110929/15-times-when-you-shouldn%27t-use-your-credit-card?mod=series-m-article-c
I think it’s great that you decided to get rid of your credit cards. I always stayed away from them because of the temptation of overspending.
While I don’t pay for everything in cash, I do use my debit card which makes me aware of how much I have to spend. If I don’t have the money I don’t buy things.
I think the best thing ever would be for everyone to get rid of their credit cards. I never understood the need to establish credit in this manner. If I have a job and pay other bills on time that should be enough.
That new link from Yahoo should include you shall not buy four pairs of shoes at one time and no, you do not need two new purses!
yes it should, cuz I would be the first one to bow my head in shame!