I don’t own a credit card, and I am fine. Today, I read this post from fashion maven Gala Darling about she lives without a credit card, which makes it easier for to only spend what she earns. Gala says:
The fact of the matter is that I only recently moved to America, & as I have absolutely no credit history here, it would be nigh impossible for me to get a credit card (even if I wanted one, which I don’t!). This puts me in the position of actually having to EARN my money BEFORE I spend it, & while this may sound like an epic drag, it is one of my keys to being financially secure. (Putting a bunch of your money into savings every month is obviously another good step!)
If you rationalize keeping a credit card for making purchases online or where cash is not accepted, then use a debit card. A few weeks ago, I talk to the founder of Perk Street Financial about their debit card. They have a debit cards rewards program where you can earn at the minimum 1% cash back on all other non PIN purchases on days when your account balance is less than $5,000. If your account is $5000 or more, then you can earn 2% back. I love this idea of rewarding people for behavior that are already doing.
Now, I am not going everyone to go into their wallet and cut up their credit cards. Your personal finance is just that-personal. I just want to let people that there are debit card options, and you may earn some money while spending money.