Fight Debt Pay With Cash

With the ongoing mortgage crisis still unfolding, a lot of homeowners have had to go to great lengths to keep on track with their mortgage – even using their credit cards to make mortgage payments!

While credit cards can be a great thing to have in case of emergencies, they have a lot of harmful side effects and it can be argued that they are bad for society as a whole. Once it was the norm to pay with cash. If you couldn’t afford something, you simply didn’t buy it.
The current credit crunch has led to a lot of financial institutions, even the largest among them to borrow from the Federal Reserve to remain solvent.  Here are some figures from the Federal Reserve which may surprise you: In the years 2006-2007, US consumer debt was $2.46 trillion! Most of this is credit card debt. Other sources tell us that a little over 8% of U.S. households are carrying more than $9,000 in credit card debt.

The biggest problem with credit cards is how easy it is to get one. Millions of applications are sent out daily. We are a nation of debtors – and the only way out is to pay with cash for purchases. Especially if you have more than one credit card, this is a good time to start paying off the debt you carry on them. If you were to add up the interest payments you are making, you might be dismayed.

Credit cards are certainly convenient but can become a troublesome burden as well. It’s not a bad idea to have one card for emergencies and to build your credit rating –but that’s all you really need.

What are the benefits of paying with cash?
You’ll only buy what you can actually afford. You won’t be putting yourself into debt and you’ll be able to have a life free of the stress which comes with debt.

There is a way of paying off your credit card debt which more and more are using known as Debt Snowball. You make a list of your credit cards, ranked by highest to lowest interest rate. Rather than just making your minimum payment on the highest interest card, make the largest payment you can very month until it’s paid off. Continue down the list this way until they are all paid off.

Our grandparents didn’t believe in carrying debt, which is why they didn’t have (and for the most part, still don’t) have credit cards. You can debate the merits of this but your grandparents are right. They save for the big purchases and pay in cash, never getting themselves into debt.

Any kind of debt adds a lot of stress to your life rather than improving things. With the prices of fuel and food continually rising, people may tell themselves that paying with plastic will let them keep some cash on hand. Remember that this debt will come due sooner rather than later. Isn’t it better therefore to pay with cash? You can save costs by clipping coupons and shopping sales for what you need.

Paying with cash has become the exception, rather than the rule; and we are all now paying a high price for the sake of convenience.

Start fighting debt today by consolidating all your debts from there you can start to pay with cash only. Consolidate your debt today by completing the quick and easy application oon the right, there’s no obligation and we search 90%+ of the UK loan market to find you the best deal.

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