How to Live Without Credit Cards in Austin

Is it possible to live without credit cards in Austin? Yes, just ask your grandparents, because they and everyone before them did. It actually wasn’t until the 1970s when credit cards became widely used.

I agree that everyone should have at least one card, kept in a dresser drawer. It should only be used for real emergencies or when a credit card is required, such as renting a car. All other times, the card should not be easily accessible.

Here’s a question, would you be happy if your boss gave you a 3% pay raise? Of course you would. How about 10%? Now that is big money.

Now suppose you forget your wallet at home, but want to buy lunch. You ask your co-worker if she could lend you $10. She says, “Sure, but I’m going to charge you 10% interest.” Two questions: (1) Would you accept? and (2) Where do you work? No one would not take the offer.

So most people have a reaction over 10%, because that is a big deal. But, the same people eagerly accept high credit card interest rates without question. In fact, according to Wallet Hub, for 2019 the average new credit card interest rate is 19.24%. Yikes.

Besides legitimate emergencies, people use credit cards because they do not have the cash to pay for a purchase. When we use a credit card, we are borrowing from our future income. What they are really saying is: I cannot afford this vacation, dress, TV, suit, dinner, gym membership etc. today, but I’m willing to pay a 19.24% premium over time because I want it now. When people do this over and over, their debt adds up quickly and becomes overwhelming.

Here is a new rule to follow: If you can’t pay with cash (or debit card) for something, you cannot afford it and you should not buy it. If you really want something, save for it or earn extra money.

If you need some help paying off credit card debt, Capital Budget Strategies, LLC, Austin’s best Financial Literacy Coach, can help.

For only $149, we will help you determine your Net Worth, analyze your spending, set up a monthly Household Budget, an Emergency Fund, a Snowball Debt Repayment Plan and let you know how well you are doing saving for retirement. Finally, we will review your bank accounts and introduce you to on-line banking and automated payments.

Our Austin Financial Coach can meet at your office, your home or at our home-office. We can meet during the day, in the evening and even on weekends.

So, if you really want to join your college buddies on their vaca to NYC next year (and who wouldn’t) then start saving now. Deliver pizza on the weekends, drive for Uber, have a garage sale, sell your shoes on e-Bay. Just don’t use a credit card and spend years paying it off.

I know, who wants to work on weekends? Probably no one, but who wants to go into debt for years and years? Absolutely no one!