Does staying on a budget seem like a revolving door of being on track with your goals and then way off track just to end up back on track again? If that sounds familiar, you’re not alone. Everyone wants to stay on top of their financial goals but often find themselves thrown off by simple things.

The solution is different for everybody. Some people have to remove the ability to shop online. Others simply need to find the right credit card for them, the type that can help them save and build points. For others, it is getting rid of all credit cards. Here are 5 reasons you should consider not using credit cards anymore.

  1. Interest/Fees Avoided

    30% of all credit card users in Canada do not pay their balances in full. If that is you, you are paying unnecessary interest on your purchase, often at exorbitant rates. The average credit card interest rate is 19%, with some as high as 29.99%. Interest on credit cards accrues daily, which means you are paying more on any outstanding balance for every day that passes with a balance owing. What can you do about it? Avoid using credit cards by planning ahead for bigger purchases and future financial needs.

  2. Impulse Buying Curbed

    You are far more likely to make impulse buying decisions when you have a credit card. Why? Because it’s there. Because the sales process is all about overcoming your urge not to spend your money. Remember, marketing departments are professionals at selling, and most consumers are amateurs at buying, easily lured into purchasing just about anything so-called on sale. We more easily give in to impulse purchases, particularly small items. It is easy to justify 5$ here or 10$ there. However, those small purchases add up, and when you don’t pay your bill on time, a $10 purchase could cost you $40 in the end.

  3. Overspending on Large Ticket Items Stopped

    It is far easier to overspend for large ticket items, such as electronics or furniture, when using your credit card. If you have $5,000 to spend on a living room set and bring that money in cash with you to the store, you are more likely to spend $5,000 or less. If you buy with a credit card, you are more likely to overspend. Telling yourself, “It’s only a few extra hundred dollars” is a lot easier if you don’t have to go and get more cash from an ATM.

  4. Credit History Mistakes Non-Existent

    Making mistakes is a part of life and fixing those mistakes and moving on is part of growing up. However, if you make mistakes with credit cards and rack up a lot of debt, those mistakes will have long-term consequences that follow you for a long time. So, if you are unsure of your budgeting ability, not using a credit card may be the best option.

  5. Identity theft Crushed

When using a credit card, you are far more likely to have an issue with identity theft or identity fraud. 28% of all identity theft cases in the US in 2020 were based on credit card fraud. That means by not using a credit card, you are far less likely to have any identity theft challenges overall.

How do you afford the bigger purchases then?

Purchasing things like a new vehicle or a new home is affordable with the right plans in place. Avoid using credit by following your budget and evaluating your spending habits. CalendarBudget’s future planning allows you to set recurring transactions based on your current spending patterns. Watch for areas where you can reduce or eliminate expenses to keep more money in your pocket. Then, use the freed-up funds to establish an emergency fund and other savings to prepare for unexpected moments and larger purchases. Be unusual. Plan ahead. Pay cash for your new vehicle. Give yourself a much lower budget amount than your bank qualifies you for when buying a new home.

When you use your credit cards, you have interest working against you. Get interest working in your favor with a solid financial plan to be prepared for any and all future purchases. Using CalendarBudget makes it simple to plan ahead and keeps you in the driver’s seat for achieving your financial goals. For more information, visit our website or download the app and try your FREE, 30-day demo today.