Life without credit?

Question

You wake up today to find out someone has paid off all or any personal debt you have,the catch you will NEVER again be allowed a loan ,overdraft or credit card.Would or could you and youre family survive.My husband and i have a reasonable income not rich,not hard up yet at end of every month i find myself using a credit card to buy food shopping ect.It got me thinking if we had to live on exactly what we earn could we and would it change youre life for the worse or better.?

By saying i use a credit card for food shopping i mean that if short of money at end of month,i keep what little money i have and use the card (usually picking up things if im honest could do without!)The card is then paid off in full when i get paid.I only ask as i have friends who seem to live the good life and yet earn roughly the same as me?The debt they must be in is frightning.With the exception of maybe a mortgage could people go back to actually saving for the likes of holidays,cars and paying in good old cash.?

Answer 1

I work in the financial services industry and help many people out of debt. The thing about credit is that it is meant to never let you out of it's evil grasp. The temptation with credit is to use money you don't have and many people lose control for many reasons. You are actually worth more to the credit card company even if you have completely defaulted on on a card as opposed to never having taken out any credit in the first place.

Unfortunitly, renting our lives to the lending industry is seen as the norm and because of a total lack of financial education out there , the lending industry banks on our ignorance.

The company I work with, we educate the consumer and we focus on helping people become completely debt free and financially independant.We teach people by exposing the true intentions of the debt creation industry. Even the word MORTGAGE is a big hint. Mort, meaning death, Gage, meaning agreement. so there for the word mortgage means agreement untill death. Do you think they want to let you out of that contract?

To answer your question, yes our lives would be far better off if we didn'[t rent our lives to the lending industry, actually here is a true fact, if a young person wants to retire, they will need about 1-1.5 million saved to draw from in their golden years to even maintain the life style that they have now. How are people supposed to do this if the population is carrying a debt load untill death?

Answer 2

If you are having to use credit cards at the end of the month to buy food, then the first thing you are facing at the beginning of the next month is the credit card bill for that food. If you bit the bullet one month you would be better off as that food bill would not be there it would mean you would have to save throughout the month and buy only essential food stuffs but it is achievable. Then for every subsequent month as long as you keep tabs on your spending you would be better off and out of that credit chain of food stuffs at least.

Answer 3

Sounds like "bankruptcy" to me. Owing is not good, but borrowing and not paying it back is worse. Credit is freedom and choice that should be respected, not abused.
If you look at all of your monthly bills and have your family really look at what is needed and what is not-I did this myself and eliminated several added bills
If you are spending more than you are earning, maybe a second job until the debt is paid off is reasonable, and you teach your children how to be responsible. Good luck

Answer 4

Creditors - ALL of them, want you to spend more than you can afford to spend. They want you to live beyond your means. They want you to succumb to the "buy now, pay later" TRAP. They are very, very good at setting their traps. They want as much of your hard-earned money as they can get. They are SHARKS - all of them.

You should use credit cards only for your convenience, paying them off in full each month. Life without credit is a much healthier way of living. The only two things that money should ever be borrowed for are education and housing. Financial experts say we should have six months of gross income in liquid savings. What is your retirement going to be like? How much is healthcare going to cost?

Answer 5

My wife and I live without credit or debit cards. After going through the disability process we lost almost everything waiting for approval and having no income at the time other than a small savings account. Therefore our credit went from excellent to poor. It is difficult at times because we have nothing to fall back on. You just have to learn to budget yourself and spend carefully and wisely. It can be done!

Answer 6

I genuinely never have credit cards or any finance everything we own we save up for and life is much better might some days be a tough slog but lets be honest whats ours is ours and any spare money we have we enjoy don't fall into creditors hell worth it in long run have a happy debt free life :)

Answer 7

It would be better if someone learned to live on what they make and didn't use a credit card...Those things get people in trouble...I use one for big items, i want the frequent flyer's miles, but i pay mine as soon as the bill comes...I do not want the credit card company to get extra money from me...LOL

Answer 8

I live on exactly what I earn. Never had a credit card and I can guarantee you I never, ever will. I don't believe in spending money I don't have.
The only loans I will ever take out will be for a decent car, and for my house.
I survive just fine.

Answer 9

I would grab it with both hands and gladly never have credit again.
Oh oh... does that mean a mortgage too?
Well I would never be able to save up for a house. Well, I would, but I would be 80 before I could afford it!

Answer 10

I have never owned a credit card in my life,and would never want one.I'm old fashioned and believe in cold hard cash.I would not want to be paying interest.Not for me.I save for what I want.
People spend beyond their means and end up in debt.I get more satisfaction from saving.