What would be the pros and cons of eliminating credit cards altogether?

Answer 1

I have done that , and my mortgage is three years from being paid off , I have not had a credit card in 15 years ,I save all I can , when it is time for major purchases I pay cash .The money I have saved in interest alone is unbelievable , and my total out going monthly bills for house including utilities is less than 800.00 per month, I have never refinanced,and I will not finance anything else once my mortgage is paid off . I have saved thousands in interest . the key to it is do not live beyond your means , I have not vacationed in 15 years (with the exception of this past summer we took the kids across all 48 for the summer.took about three months) .all frivolous money that would have been spent on my wants instead of my needs( except going out to eat ) went to savings (not bank) I do not pay fees to use my own money for no reason... all tax returns are cashed ,and saved ...all cars paid in full , and the biggest pro is my girlfriend ,and I will be starting our retirement in our 40"s I will be 49 (if I live) when I retire while those living on credit cards work until they are 65 ..keep up with all the money that would have been unnecessary spending , if you put it up and pretend it is not there you will be amazed how much you can save.. I am near 6 digits in just 15 years.. that is more than a 401k would have in it
I see no pro's of keeping a credit card .. why would you ...gas ina car ? at these prices it is insane to finance gasoline or anything else if you do not have the cash , you probably do not really need it .............just my point of view, and knowledge based on expierience, lastly if you get a paycheck on friday and you are broke on saturday you are living above your means ...one weekly paycheck should be able to pay a months worth of your bills ...do not listen to others who say 80 to 90% of your income should be spent to live on ...bullsh*t , you are told that by people who are offering you credit..they want your money they will tell you anything to get it trust me.. sorry so long ,but this is the pro side of doing away with credit cards , The con of keeping one ?? you will con yourself out of a lot of money in interest over the years

Answer 2

I admire the two posters before me, but I think that eliminating your cards altogether would be a poor choice if you are young-ish (below 49). I use my credit cards as debit cards, meaning that as soon as I charge something I know that evening or the following day to make an on-line payment to my credit card company for the amount charged.

The reason I do this rather than killing my cards completely is that it allows a long trail of good credit to be laid. I don't expect to ever finance a house or take out a huge loan, or even finance a new car down the road, but if I would like to, then I know I have a great track record to fall back on.

Credit cards are also great if you are stuck somewhere with no financial means to get help. If your car breaks down on a road trip across the Australian outback, or if your bicycle tires fracture on an expedition from coast to coast in the US, you can have access to timely repairs. That piece of plastic will generally allow you to pay for repairs. It won't tune up your car, or save you from a bear, but it does afford a buffer of convenience in those situations.

Answer 3

Cash is best. The biggest wealth building tool is your income. You don't want to use your hard earned income on interest on credit cards.

We use cash, we haven't missed the credit cards. If we have to hold something (car rental) we use our visa debit card.

There isn't a con to eliminating credit cards.

Read:
The Millionaire Next Door by Stanley
The Total Money Makeover by Ramsey

For more infomoration on using your income for you.