Living Without Credit – Financial Health

Living Without Credit Can Change Your Life

These days, most people’s lives revolve around credit and keeping the credit score high enough to buy things such as houses, cars, insurance, cell phones, and rent. Even utilities can use credit reports to determine the interest rate you’ll pay and in some cases whether you can even get the item you want.

Living without credit is possible, but be aware that some things might be a bit more difficult.

If you have no credit, you will still be able to function in today’s society, but it might cost you an added one or two percentage points in interest or require a larger down payment. Even with the inconvenience, though, you’re likely to experience many more benefits of living without credit than drawbacks.

You’ll Avoid Interest Charges

Depending on the circumstances, interest rates can be really high: usually more than 12 percent even if you have good credit. Imagine if you could earn this much money in your savings instead of paying that much for your movie tickets that you charged on credit.

You’ll Have Fewer Bills

If you don’t use credit you’ll have fewer bills to pay each month, which can lessen the stress in your life exponentially. Being able to live with less money each month is a very freeing experience.

You’ll Spend Less

The truth is, people tend to spend more money when it’s on credit than if they know they’re spending cash. When you spend cash, the money is harder to let go of because you know how hard you worked to get that money.

No One Can Tell You No

When you apply for credit they can say no for many reasons, some that make sense and some that don’t. When you use your own money you say yes to yourself with a feeling of freedom rather than weight.

You Will Save More Money

When you have fewer bills you can save more money. You are the one who will earn interest instead of the bank. You can put the money away and then ultimately end up using less credit due to saving more money.

It Keeps Your Priorities Straight

When you don’t use credit you are able to realize what is important. Having more things isn’t as important as the health and security of your family.

It Unleashes More Creativity

When you have to think outside the box to live less expensively, you will become more creative in your everyday life.

You’re Better Prepared for the Future

Not using credit will make you a lot better prepared for the future due to the savings you will stockpile. Plus, if you have fewer monthly bills, you can live off less if you should get laid off.

Not only can you live without credit, you can live better without credit. The credit industry doesn’t want you to know that you can live without credit. They want you to feel as if you have to use credit for everything or you won’t be able to buy a house or get a job. But, the truth is there are always ways around those issues. They might initially cost a few dollars more but the savings from not using credit more than makes up for it.