The Forgotten Four: Reasons to Avoid Credit Cards

Having a credit card certainly brings you a certain peace of mind. Should you need a few extra dollars and not have the cash in your pocket, it can be reassuring to know that there’s a little piece of plastic in there that you can whip out to come and save the day. But just as we know how tempting credit cards are, we also know there are several reasons not to own one, exorbitant interest rates being one of them. But along with high interest rates and unheard of start-up fees, when really looking at credit cards and how they can affect your life, you may find a few other forgotten, or not-so-obvious, reasons to avoid getting in too deep with credit cards.
A Bad Credit Score Could Affect Your Future Job, Mortgage, or Insurance
More and more, people are looking towards your credit score to see how trustworthy a person you are. If your credit score is low, insurance companies might think that you’re not going to be able to pay your premiums and mortgage brokers might think that you won’t be able to make your mortgage payments. In addition to that, employers often look to your credit score to see how honest of an employee you are; this is especially true if you’re going to be working in retail or with large amounts of money.
Losing Self Control is a Slippery Slope
Getting too deep into credit card means one thing – you’ve lost control in at least one area of your financial life. It might mean that you then take out a debt consolidation loan, second mortgage, or other type of loan to help you pay off your credit card debt. While these are very good options, and suitable for many situations, start with credit card debt and it could be a slippery slope into other types of debt as well.
Being in Credit Card Debt can Have a Negative Impact on your Relationships
Money is the number one reason why couples fight and why they break up. This is especially true with credit card debt because it can add up so quickly and seem impossible to get out of. Also, mortgage debt doesn’t seem to affect couples as negatively because that debt is working towards something, owning your home. With credit card debt however, the money you’re paying is often for a dinner that’s long since been eaten, or something that’s already gone. Paying off that debt can be much more frustrating.
Preventing Credit Card Debt Brings Peace of Mind
Whether you’ve always managed to find a way to avoid credit card debt, or you’ve just gotten out of it, not having that debt hanging over your shoulder makes you feel a lot better about everything. You’re not worried about high interest rates, an ever-declining credit score, or how you’re ever going to get out of debt. In short, you’ll be happier.