Five Ways to Cut Credit Cards From Your Life

Budgeting Your Money

You may feel compelled to pull out credit cards when funds are low and you don't have enough cash to pay your bills or meet other financial obligations. However, carefully budgeting your money and sticking within your budget can alleviate money problems and reduce your need to live on credit cards. Establishing a budget is simple -- staying within your budget is tricky. But if you're serious about gaining control of your credit, learning how to budget is imperative. After reviewing your income and expenses, set aside a certain amount of money each month for essentials such as transportation, housing, food and utilities. Allot a small percentage for entertainment and recreation. Going over budget and spending more than necessary on "fun activities" cuts into your funds, which can force you to rely on credit cards.

Eliminate Balances

Credit card balances can follow you for years, and if you continue to charge new purchases, the balance will gradually increase. Paying off debt is key to cutting credit cards from your life. Depending on how much you owe, it can take months or years to reduce your balances. Putting a solid plan into action helps bring down the principal. Re-focus attention on your budget and determine what's left after paying bills each month. If you have a cushion and there's extra money, put this money toward debt. If not, think of ways to create extra money. Sell personal belongings or get a part-time job.

Getting Rid of Credit Cards

It's smart to keep one credit card in your wallet for emergencies. But if you can't control your credit card use, grab a pair of scissors and cut your cards into several pieces to get them out of your life. Toss the remnants of the credit cards into the trash and don't request a replacement credit card. If your credit card company mails a new one once the old card expires, repeat the process and destroy the new credit card.

Locking Up Credit Cards

If you feel that you're strong enough to keep a credit card intact and not use the plastic for purchases, keep hold of one card for emergency use only, and then keep this card at home, away from retailers. Since it's easy to shop online from home, consider storing this credit card in a locked safe that's not easily accessible. To ensure that you don't pull out the card for an impulse buying spree, ask someone that you trust (perhaps a spouse) to hide the card in a safe location.

Cash Payments

Adopt the mindset of paying cash for everything. And if you don't have cash to pay for an item outright, realize that you can't afford the item at this time and move on. Saving up for purchases is a smart way to purchase items because you don't have to use credit cards to acquire merchandise. No credit cards means you don't have to worry about a monthly bill or interest charges.