On Credit Cards and Debt

Early on in our marriage my husband and I decided that we would not apply for any credit cards. We have heard so many horror stories on the high interest rates and the people that get buried in their debts afterwards. Oh we do have our moments where we just want to apply for a credit card right away so we can afford those cool gadgets that we see at the mall but we just said to ourselves that if we can’t afford to pay it in cash then we really cannot afford it and we don’t have the right to buy it. So that was what we did, we paid cash for all the furniture and appliances that we have in our house. We did a lot of not buying impulsively even if both of us were working then and we were glad because we were able to afford to move out of our parent’s house without incurring a single debt.
But I must admit that in this world we could not entirely survive without a credit card forever. I know there will come a time that we would need one especially when we need some cash for starting a business or some unfortunate event where we will need a huge amount of cash. Going into debt still gives me a shudder but I am glad there are companies out there who can help us manage our debt if the time ever comes.


wandering elephant said...

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Good N Crazy said...

Except for Travel we could go without the cards. They make you use them to book hotels!

We did use a card to transfer over the last of student load debt that was at a higher rate than the card was!

But overall I hate debt. Even wish our house could get paid off!!

Patricia Rockwell said...

Your self-discipline is commendable but not having a credit card may ultimately be harmful in that you will not be able to establish a credit record and build good FICO scores. Just having a credit card doesn't mean you have to use it unwisely.

Jenz Iggo said...

Its the wisest choice one could ever make not to be strangled by debt, especially the plastic debt.

I beg to differ, we can survive the world without a credit card. Bad things do happen so the way to deal with it is to set up an ample, generous amount of emergency fund.

Its devastating when something unfortunate happens, and you have to rely on credit to cope with it. Its like taking a double blow hit and the damage doubles.

faeryrowan said...

Me and the husband have been adamant about owning credit cards as well, and I can say we've been doing good without it. You really don't need credit cards to survive. And if it's a matter of worrying about carrying cash around or doing online purchasing, there are ATM cards that also function as debit cards now. They are basically as good as using cash. ;)

Z'riz said...

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