How to Survive With One Credit Card
Use cash for basic purchases., Start saving money with a goal in mind., Get extra income., Give your spending habits a makeover., Choose your credit card wisely., Talk to a financial adviser about how to survive with 1 credit card., Plan carefully...
Step-by-Step Guide
-
Step 1: Use cash for basic purchases.
Instead of charging gas and other daily expenses on credit cards, pay with cash.
That doesn't mean you have to carry large sums of cash around; you could use a debit card.
However, withdrawing cash and spending only that amount can help with budgeting and avoiding over-spending. -
Step 2: Start saving money with a goal in mind.
Many people rely on credit or credit cards for large purchases.
They also consider them an emergency fund.
While credit cards are helpful for these types of purchases, it's possible to replace them with saved cash instead.
Use savings first to build an emergency fund, and then use your savings to put towards large purchases like appliances and even cars or homes. , It's hard to live without credit when you are not making enough to survive and save.
Find a second job or passive income source.
There are many work from home jobs or small businesses that allow you to earn money without investing a lot of time or money.
Use your skills to make extra cash.
Sell things you don't need or use anymore. , Stick to a budget.
Save money by cutting back on unnecessary purchases.
This will not only break the habit of credit card use, but will give you more cash to save toward emergencies and large purchases. , Make sure the card you keep, or get, works for your needs.
If it's to be used for convenience in purchasing only, make sure you pay it off every month.
A card for emergencies or large purchases should have a low interest rate.
The same is true for a card you are using to consolidate debt.
Some cards offer rewards like points for gift cards or travel.
This could be a good choice, but you'll need to plan purchases carefully and not keep a balance since they usually charge higher interest rates. , It's usually best to eliminate credit card debt but keep credit accounts open, since closing accounts can negatively affect your credit.
However, an accountant or adviser can look over your finances and credit history and come up with the best solution. , Pay off the ones with smaller balances first, and then use the savings to pay off the next card.
When possible, move balances to cards with lower interest rates.
Hold off on new credit purchases until balances are manageable. , PayPal links right to your bank account and can be used to make purchases online.
It eliminates the need for having a credit card just to buy from the Internet. , Credit cards come in handy when you want to travel or make large purchases.
These things can still be done with cash--it's just more of a hassle.
Plan in advance, and allow time for sending cash deposits or wiring money as an alternative to reserving or paying with a credit card. -
Step 3: Get extra income.
-
Step 4: Give your spending habits a makeover.
-
Step 5: Choose your credit card wisely.
-
Step 6: Talk to a financial adviser about how to survive with 1 credit card.
-
Step 7: Plan carefully when phasing out credit cards.
-
Step 8: Sign up for PayPal.
-
Step 9: Allow extra time for purchasing.
Detailed Guide
Instead of charging gas and other daily expenses on credit cards, pay with cash.
That doesn't mean you have to carry large sums of cash around; you could use a debit card.
However, withdrawing cash and spending only that amount can help with budgeting and avoiding over-spending.
Many people rely on credit or credit cards for large purchases.
They also consider them an emergency fund.
While credit cards are helpful for these types of purchases, it's possible to replace them with saved cash instead.
Use savings first to build an emergency fund, and then use your savings to put towards large purchases like appliances and even cars or homes. , It's hard to live without credit when you are not making enough to survive and save.
Find a second job or passive income source.
There are many work from home jobs or small businesses that allow you to earn money without investing a lot of time or money.
Use your skills to make extra cash.
Sell things you don't need or use anymore. , Stick to a budget.
Save money by cutting back on unnecessary purchases.
This will not only break the habit of credit card use, but will give you more cash to save toward emergencies and large purchases. , Make sure the card you keep, or get, works for your needs.
If it's to be used for convenience in purchasing only, make sure you pay it off every month.
A card for emergencies or large purchases should have a low interest rate.
The same is true for a card you are using to consolidate debt.
Some cards offer rewards like points for gift cards or travel.
This could be a good choice, but you'll need to plan purchases carefully and not keep a balance since they usually charge higher interest rates. , It's usually best to eliminate credit card debt but keep credit accounts open, since closing accounts can negatively affect your credit.
However, an accountant or adviser can look over your finances and credit history and come up with the best solution. , Pay off the ones with smaller balances first, and then use the savings to pay off the next card.
When possible, move balances to cards with lower interest rates.
Hold off on new credit purchases until balances are manageable. , PayPal links right to your bank account and can be used to make purchases online.
It eliminates the need for having a credit card just to buy from the Internet. , Credit cards come in handy when you want to travel or make large purchases.
These things can still be done with cash--it's just more of a hassle.
Plan in advance, and allow time for sending cash deposits or wiring money as an alternative to reserving or paying with a credit card.
About the Author
Henry Gibson
Professional writer focused on creating easy-to-follow DIY projects tutorials.
Rate This Guide
How helpful was this guide? Click to rate: