We live in the age of plastic. You can use your credit card to pay for anything, from a cup of coffee to a car. While they may be convenient, credit cards can cause a lot of problems. By detaching ourselves from the physical act of handing over paper money, we make it harder to keep track of spending. With personal debt reaching new heights, many people find themselves addicted to credit cards.
Here are five signs that you may be addicted to credit cards:
1.You don't actually know how many credit cards you have, much less the balance on each card. By not thinking about it, you're deluding yourself about the state of your finances.
2. When you max out one credit card, you just apply for another. The more you do this, the higher your debt will grow.
3. You spend more than what you earn. Credit is not free money. You will have to repay every penny, with interest.
4. You only pay the minimum balance each month. At that rate, it can take 30 years to pay off a credit card.
5. You have more than two or three store cards. Store cards are just like credit cards, except that they're limited to a single brand. Don't forget to include them in your credit card count.
If these signs apply to you, it's time to stop spending. Do not apply for new credit cards. Pay off the ones you have and cancel them. Start off with the cards with the highest interest rate [1] and go from there. Carry small amounts of cash to use for your daily expenses. Leave the credit cards at home. Once the cash runs out, you'll have no choice but to stop spending. It'll be like the good old days, before you had a wallet full of credit cards and had to live within your means.