It is so easy to get what you want without waiting when you have a credit card. The higher the credit limit is on the card the better- right? Why wait for that new 60” television you have been wanting by saving when you can just pull out the plastic? The credit card companies dangle a carrot, so to speak, in front of you waiting for you to bite.
Below are the main 3 reasons to ditch credit cards. You probably can come up with more if you try but it truly boils down to just 3 reasons to ditch credit cards in order to get that burden off of you.
Reason 1: You Are in Debt by Design
Credit card companies need you riddled with debt. How else are they going to profit off of you? Credit card interest cannot accumulate on a zero balance. That is why they want you to rack up charge after charge on your card. That is why they will raise your card limit without you even knowing it. The bigger your limit, the more you can buy and ultimately the more they make in interest charges.
Reason 2: Making the Minimum Payment is a Set-up
The only way that the credit card company design fails is if you are that diligent card holder that pays off their balance monthly. On the flip side of that, if you carry a balance each month, they love you! They have you making a minimum payment knowing you will continue to use the card every chance you get. This allows your card to remain in good standing and keeps them paid for around 15 years or so. Yes, that is the projected time you will be paying that card off paying only the minimum payment.
Reason 3: Too Hard to Resist Using Them
Resisting the urge to flash that card takes an unbelievable amount of self-control. Credit card companies roll the dice that you will not be able to resist. This makes them more money and sets you back further every time. Save yourself from yourself. Remove the cards from your wallet and easy grasp.
Believe it or not, credit card debt is one of the main reasons that people file for bankruptcy. It’s easy to let your spending habits get out of control which is why we urge people to only make credit card purchases if they have the money in their account to cover the cost.