How to Live Without Credit Cards

Half the Income But All the Bills

A TV commercial for a debt consolidation company aired recently where one woman told us that her work hours got cut in half, but she cannot pay half her bills. Living on half your income, as they say, means that you need to find other ways to cope. So, they want you to consolidate your debts with them. Emergency cash loans should not make you go further into debt if you are paying your bills on time without using credit. If you cannot pay your bills with cash, then look at taking out a loan, rather than using credit cards. Smart budgeting can help you reduce your expenses drastically.

Reduce Expenses

To pay your bills without credit cards, the first thing you need to look at is how much money you are spending every month. Paying your bills without credit cards require you to be honest here! Eating out all the time will cause you to lose out on money that you could pay your bills with. Also, if you over spend, your budget will never be balanced. If you must have a high living standard, then you must raise your income to reasonably cover your expenses. Living beyond your means does not create a budget that works, so choose what you will cut or keep. A large house may be nice, but if you cannot afford it, you need to make the hard choice to sell it. If your car payment per month is double what you can afford, sell the car and get something cheaper.

Look at how much money you can really afford to spend on housing, transportation and food costs. Smart budgeting includes a plan of action, so take action on your budget. The most difficult step in lowering your bills is to get started.

Debt Repayment Plan

With the massive credit card hikes that have been charged to many people lately, it is imperative that you pay off your credit card debt as soon as possible. Interest rates will take more money from you in the long term if the balance is not paid up. Debts can be paid off quickly when you have plan. Cut up your cards and create a debt repayment plan. Credit cards are really not needed to create a credit history, in spite of what certain experts say. Take the time to create a sensible budget so that you can live within your means. Credit cards can take care of an emergency. In the event of an emergency or a job loss, set up a savings account and work towards putting at least eight months of income in your account. An emergency cash loan may come in handy if you have some time on your side.

Increase Your Income

No budget worth its salt is complete without a plan to increase your monthly income. Losing half of your income can be tough. Do you know what you will do in case this happens. Even during a recession, people will pay you to do something that they do not have the skills to do. Look at your talents—do you do something so well that others would pay you to do it for them. Babysitting or party planning may help you earn extra money, especially if you are good with kids. Not everyone is skilled at explaining difficult concepts, but if you can do this by writing, you can make a nice little side income. Making up for lost income requires you to evaluate your talents, as well as your skills. Once you have started working on replacing your income, you may find that you enjoy it so much, you will end up doing it full time and replace your income.

Smooth Sailing

After creating and implementing your sensible budget, you will wonder how you ever lived with credit card debt in the first place! Implementing small changes to your budget will take some hard work, but it will be worth the effort. Unless you must take out emergency cash loans, a smart budget can make your life easier!