25 Reasons to Cut Up Your Credit Cards

Are you thinking about ditching your credit cards? Making the decision to cut up your credit cards can feel scary especially if you have spent years relying on them.

When I tell someone that I don’t use credit cards and only use cash or a debit card, I can almost instantly see the surprise and confusion on their face.

They question how I do things like travel, rent a car, handle an emergency, etc. Basically, they want to know how I survive without having a credit card, and they don’t understand why I would make that choice. I’ve even been asked if I have a discipline issue.

I used to have credit cards and even though using them earned me free travel, along with that perk also came the ability to live beyond my means, anxiety, and money stress in my marriage. After years of use, I decided I wanted out.

Everyone is different, and I believe in doing what works for you. Some people swear by a cash-only lifestyle, while others declare the benefits and perks of using credit cards. It’s important to identify the best path for you.

That being said, there is much to gain by doing away with your credit cards. Here are some reasons you might want to go ahead and get those scissors out and cut up your credit cards.

25 Benefits of Not Using Your Credit Cards

1. Using cash helps you stick to your budget. When the money is gone, you stop spending.
2. No more mid-month, “Stop using the credit card!” panic moments.
3. You won’t have the ability to live beyond your means and go into (further) debt.
4. No more struggles with “should I buy it or shouldn’t I?”; if the money isn’t there, the decision is already made.
5. You’ll have fewer bills to worry about and pay.
6. It will take you less time to do your monthly budget.
7. You’ll know exactly what you’ve spent your money on and won’t need a statement to tell you.
8. Handling emergencies with cash is less stressful.
9. There’s never any fear when buying something, that the transaction won’t go through.
10. Less stress and anxiety (even if you pay off your balances every month).
11. There is ZERO possibility of paying interest and late fees.
12. There is never any temptation to buy something and pay for it later.
13. No more juggling your purchases with your paycheck.
14. You’ll have greater clarity on your spending.
15. No more constantly checking your credit card balance throughout the month.
16. You’ll learn delayed gratification.
17. There are no rewards or incentives that may cause you to overspend.
18. You’ll never be surprised to find out how much you’ve spent.
19. You get to focus on future purchases instead of past purchases.
20. You’ll never “forget” that you spent money on something.
21. When taking a vacation, there’s no uneasiness that you’re sending too much.
22. You’ll discover that credit cards provide a false sense of security.
23. The line between your needs and your wants becomes amazingly clear.
24. You’ll learn to be more intentional and thoughtful about your purchases.
25. PEACE

Related Reading
•   The Downsides of Using Cash Only
•   How to Save $1000 Quickly
•   How to Squeeze $500 Out of Your Budget
•   8 Reasons Why Your Budget Doesn’t Work

Decide What Your Incentive Is

The greatest benefit of not using credit cards is also an impossible one to quantify—peace. You stand to gain a deep sense of peace and freedom in not using credit cards—even though you may not get cash-back, points, and airline miles.

Even people who swear by paying their credit cards off every month, never carry a balance, and strictly use their cards for the perks admit that there is stress involved with that process, and oh, there was that one time they did leave a balance on the card (and that other time).

Again, choosing to cut up your credit cards is a big decision and an individual one, and there is much to consider before deciding to stop using and close your credit card accounts.

Personally, having peace when I do the budget; when I’m making purchases; throughout the month; and in my financial life in general, is a far greater incentive for me than cash-back or a free airline ticket. Now that you know some benefits of ditching your cards consider carefully whether it’s the right path for you.

Would you ever cut up your credit cards and close your accounts? Have you already? Why? Or, do you swear by using credit cards? What are the benefits you experience? Let me know your thoughts in the comments!

Editor’s Note: This post was originally published in June 2016 and has been updated.