Credit cards can provide a false sense of security. You think that you have money to fall back on even though you have no cash available. So, you spend. Not everybody does fall into the credit card trap, however. You will know if you have fallen into the trap and need to have your card cut when:
You are overspending.
If you can no longer stick to a budget because a swipe from your credit card can afford you that extra something, you need to check on yourself. Study your credit card bills. Is the amount due ballooning because of your expenses?
You have piles of credit card debts.
After checking your bills, you discovered you are deep in debt. You have been relying on minimum fees to get by. Now, you have thousands of dollars or more in credit card bills.
You are obsessed with credit cards.
Do you have more than one credit card? Are you paying off one card’s bills with another? Do you find yourself constantly using your card over cash?
If you answer yes to one or more of the questions above, you really need to have your credit card cut. Try to live a simpler life by paying in cash. Get a credit card when you think you can better control your spending.
