No Credit Cards – No Matter What
Welcome to Black Friday and to the kick-off of the Season of More, where stores open early, stay open all night and offer you incentives to come and charge the holidays away. Buy one, get one free offers call your name.
Your kids shared their wish lists and if they were good all year, why not shower them with gifts for the next month? Between TV ads, catalogs in the mail, Internet pop ups and talk on Facebook about the latest and greatest, maybe your kids forgot what makes them smile, and maybe you did too.
The time is now! This might be your only chance to land the perfect gift and take advantage of a deal of a lifetime! The holidays only come once a year, so why not splurge? You know you want to and you too, have been good all year. Why not pull that credit card out that you save for emergencies for this special occasion?
Here’s Why:
- Christmas is not an emergency.
- No one will remember what kind of wrapping paper you used.
- More presents under the tree does not make a more memorable holiday.
- You don’t want to pay for Christmas 2010 all year long in 2011.
- It feels good to opt out of the yankee swap, pink elephant or other crazy gift exchanges.
- The gift of an emergency fund will make you smile longer than something shiny and new.
- A BYOB party is just as much fun as an open bar if you invite people you love.
- Volunteering at a homeless shelter will fill you up more deeply than dinner out with overpriced holiday entrees.
During the holidays, you are compelled to spend more on food, decor, entertainment, gifts, dining out, party planning, travelling and more. By the end of December, you are fat, tired and broke. By the beginning of January, you resolve to be thin, energetic and wealthy. See the problem?
The solution is simple. Stop the madness and simplify. No Credit Cards – No Matter What. By using cash, you will likely spend less, eat less, and do less. Don’t worry, you will still do more than usual, and you will still indulge, but maybe, with a little less spending, the holidays will mean even more.
I think you’re ready! When I posted this on twitter: Keep the holidays simple: No credit cards. No matter what. – Are you with me?”
Here’s what you had to say:
- Absolutely!
- Cash only? This could be hard.
- I’m with you. (I, er, don’t even have one!).
- Already there I don’t like debt at all and the holidays are no exception
- Heck yeah!
- I already stopped using my credit card (well…except for car rentals sometimes)
- YES! this is the 2nd Christmas in a row with no credit cards!
- I’m in!
- Are you kidding? We are all homemade this year even.
- I am sooooooo with you.
If you are still thinking about using credit cards because you think you won’t have enough tinsel on the tree, or enough food to offer visitors, or enough big gifts to give away, let me remind you…You have enough. You are enough.
Spending less might mean that you get to participate more fully in the season. The real meaning of Christmas or whatever December holiday you celebrate is not in your wallet, a beautifully wrapped box or inside a cookie. You know what it is, but maybe you’ve been to stressed, and tired to experience it. Maybe it’s time to try something new.
Still considering a shopping spree today or this weekend? Read this!
What do you think about giving up your credit cards and spending less? What can you do to more fully experience the holidays without spending?
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49 Responses to “No Credit Cards – No Matter What”
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Hi Courtney.
I like your idea of not over-spending. I think we’ve gotten used to using our credit cards, but I use it in the same way I would use cash.
I definitely don’t get into debt and use their 30 day interest free periods or whatever enticements they have going on.
What I worry about the most is what my family will spend on us – sometimes we get junk that we don’t know what to do with and it clutters the house!
Peter, I am opposed to credit cards for me and my family. I think most people would agree that they do not use them the same as cash. Congrats if you are one of the few that feel shopping on credit adds value to your life. I know it is not like that for me!
In terms of the additional gifts that turn into clutter, there is no easy answer for that. It is tough to say no thank you to a gift!
Hopefully, if people understand your desire to live with less, they will respect that and buy gifts that are more appropriate, or nothing at all.
Just a thought…..It’s not a gift if you don’t want it. If someone really feels compelled to spend money on me I suggest they donate that money to their favorite charity in my name.
I believe that one has to create a spending plan upfront. I do financial counselling on behalf of a national EAP. Most people do not forecast their cashflow needs. They pay for maternity leaves with credit cards thinking they can catch up after the fact…then they are pregnant again! Someone loses a job or gets sick, but they feel they have to keep the lifestyle going..the kids’ cellphones, full-tier cable, two vehicles, etc. and the credit card balances climb.
Responsible credit card use is so much fun! Having the use of their money for 21-30 days and paying off the full balance makes my heart sing! Getting 2 cents-a-litre off my gas and accumulating enough points for free groceries is a satisfying reward!
A credit card also helps to make tracking your spending easier. You can view your transactions on-line and monitor your spending.
Interesting site..I am trying to de-clutter and not accumulate until I have! I will investigate the minimal wardrobe more closely..thanks.
I put everything on credit card & pay off in full each month. I have a good tracking system for my spending, extended warranties (free), support of VISA on my purchases (consumer protection), and they send me my “rewards” in cash. I pay no annual fees or finance charges. Plus I get that fabulous bonus of interest paid to me from my bank for leaving my money in my checking account for an extra 21-55 days…gosh, some months it’s as much as 10 cents! BTW I am a very frugal shopper so I don’t go crazy buying stuff anyway.
“Christmas is not an emergency. “
I could not have said it better myself. It’s easy to get wrapped up in the need to buy, buy, buy. Everyone needs to have a gift. If you watch the commercials on television right now, they would have you believe that their sale is an emergency. That if you don’t buy now, you’ll be overpaying later.
The adults in my family stopped exchanging gifts years ago. We focus on the children and spending time with each other. As for credit cards, I cut all of mine up and am working to pay my mistake one month at a time.
Getting out of debt is such an awesome feeling! Are you following a special plan or program to get there?
The plan my wife and I are following is to pay off one bill. Then apply that amount to the next bill in addition to our normal payment. So if bill A is for $250 and bill B is $200, once bill A is done, we pay $450 a month on bill B and so on down the line.
By the time we get to bill E, it will not take much to get rid of it.
I highly recommend paying the smallest bill first for maximum momentum! Congrats on working a plan and putting an end to debt.
I’m in!
-Rene.
Yippee Yoo!
Great post. I gave up my credit card after paying it off for the LAST TIME! in 2007. I use my debit card now, but I’m thinking of spending purely from cash. I think it would make me a lot more thoughtful about money.
I’ve declared a remake at our house–instead of Black Friday, I’m having Crafty Friday! Going to have some fun cutting and sewing and gluing, all with supplies already tucked away in my craft closet! Yay for homemade!
You will spend less with cash than a debit card. I don’t remember what the difference is, but it’s big. Imagine how much harder it is to hand over a $100 dollar bill compared to a plastic debit card. Thanks for that reminder!
So – what are you making on Crafty Friday?
I did some cutting of old sweaters to make new things–gauntlets, neckwarmers…I’m going to try a purse and also want to piece together some rectangles cut from the sweaters to make “infinity” scarves for the young women on my list! Much more fun than messing with crowds!
Thanks from the guy who said: YES! this is the 2nd Christmas in a row with no credit cards!
but seriously (or sarcastically), if I believe the advertisers Christmas must have been a very dull and boring holiday between 1 A.D. through the mid 1950′s when the 1st credit card came onto the scene. What did people do? Oh, you mean they saved for Christmas, made food for dinner parties, made gifts, passed family heirlooms to the new generations, and actually went into the new year with a LOT less debt. VERY WEIRD!
Amazing how things can change in 2-3 generations….
Rob – I love being weird!
We are all about having a hand-made, from the heart Christmas, and credit cards are not a part of that equation. Thank you for posting this terrific reminder. I am not alone!
Barb, What could be better than Christmas (or any day) from the heart? Congrats, you get it!
Absolutely on this. We just posted our own thoughts, in a relatively censored manner today on our blog about this whole fiasco, and we’ve already been “talked to” about the post by my dear Mother-in-Law. Apparently, we aren’t enough.
Seriously, there is no easy way to be in a family and outside of it all at the same time. So while our families don’t get us, it is encouraging to read of others out there that are like-minded. Thanks.
Kristy, I just read your post. Good Stuff!
Excellent and wise advice.
We received a small inheritance several years ago, and used a good portion of it to pay off all of our debt(with the exception of a school loan) including a ton of credit card debt. We then promptly destroyed all of our credit cards and closed the accounts. We have never regretted our decision. Between savings and family we have gotten past several ‘emergencies’ for which our first reaction would have been using credit. We were still able to purchase a house, so all the pronouncements of doom because we weren’t ‘building credit’ turned out to be lies.
It is also amazing to see the reactions of people when you tell them you got rid of all your credit cards and closed the accounts. Just stating that simple fact often elicits a defensive reaction.
I’m in too. I’ve spent the past year minimalisming my entire life. This will be my first minimal christmas and luckily my whole family has jumped right on board. Lucky Me!!!
Awesome Debbie! Would love to hear from you after the holidays about how it went.
Yeah I will definately let you know. I was also pleasently surprised today when I realised that you were doing the A-List Blogging boocamp as well! The bootcamp rocks!! A truly great group of people
Do you mind if in my next blog I include a link to your site?
First of all, I love this blog. Okay.
I’ll try not to make this too wordy. A friend was complaining the other day about how now since her daughter is divorced, it makes it harder for them to have their grandson over for Christmas day, as they have to share him with ex-son-in-law and his new wife. I happen to know that it is their “tradition” to go overboard with gifts, to the point of wrapping some things separately (like a pair of shoes, HUH??) so there will be more things to open.
I told her that we have disbanded with gifts except for our 2- and 4-year-old grandchildren. We are completely opposed to the commercialism and gluttony..which leads to nothing but stress anyway, and takes away from the what we should be celebrating anyway. I told her that we pick one night in December for soup and cookie-making night. We have soup with our son, daughter-in-law, and the two kids, and then we make cookies. I do stock up on sprinkles and frosting in a tube, and they can go to town decorating, even if they pour the whole bottle of sprinkles on four cookies. When you take the excessive-gift-giving-on-Christmas-Day out of the equation, it doesn’t matter what night you pick to be together. Because you are focusing on spending time with each other. We love this tradition. We’ll still be together with extended family on Christmas Eve, but again, less emphasis on gift giving and more emphasis on time with loved ones. It’s inexpensive, but yet priceless!
P.S. I’m not sure that she “got” it…
Yum! Soup and cookie night! I am in.
I haven’t had a credit card in about 3 years and do not miss it. We’ve never had an “emergency” that couldn’t be worked out with cash or something. And with three kids, two with big medical issues ,those emergencies DO happen. But we always find a way.
I do NOT miss having a credit card and never will again, Lord willing!
I am with you Lindsey. The stress of debt is not worth it. I am over credit cards and over debt!
Wow. I suppose I never really knew how people generally use credit cards. I’ve had one (ONE only) for years, and I’ve never carried a balance. I do a lot of walking in the major city where I live, and I feel safer not carrying much cash, so I do most of my buying on that card. I guess what I’m trying to say is that I treat my credit card like cash, so I don’t think canceling it would have any effect on me, except to make me less safe and have the irritation of needing to visit an ATM all the time.
Courtney,
I am so with you on the credit card thing. We have a cash amount set aside for gifts and that is what we use. The only exception is if we buy something elctronic or with a manufacturer’s warranty, as the card we have will double the warranty if paid for with the card. Obviously we pay the purchase off immediately!
We do tend to spend a fair amount on our 4 young adults, plus 7 grandkids, but we use this as a time to buy them passes to local attractions or tools for their trade or hobby that they may not be able to afford for themsleves. We stay away from excessive toys for the young or older!
Great post Courtney!
Bernice
http://livingthebalancedlife.com/2010/my-special-season-of-thanksgiving/
Bernice, I love the idea of passes to local attractions. So smart! We never extend warranties and have never had a problem.
First of all I LOVE THIS SITE!!!! We never BUY any “extended warranty” but our VISA will automatically extend the manufacturers warranty for free. We always pay our balance off in full every month, pay no annual fee or finance charges, get our “rewards” points in cash and are very frugal consumers. The credit card works for us…plus if you lose your cash it’s gone. If you lose your credit card you have the company/bank backing you up. I realize there is possibility of ID theft & it’s a real pain to fix, but if you are diligent, keep your receipts until the statement comes in to check it it’s really not a problem.
Hey Courtney—
I swore off credit cards since college. The last 5 years have been great without them. Then….IT HAPPENED. My girlfriend and I (we share finances) got the southwest credit card to get more flight credits s we fly…a lot. But we have probably spent a third of what we have put on the credit card on non-flight stuff like groceries and gas when we could have paid cash. We pay it off all the time, but still spend more than we need. I think we are going to keep the credit card but freeze it in ice in the freezer so if there is a real emergency we have to defrost the ice before we use it.
Anyways…I know and agree with our thoughts on credit cards. I do think that having one and not using it other than for DIRE EMERGENCIES is smart. But I side with you for those who really can’t control themselves and spend spend spend on days like today.
David Damron
LifeExcursion
David, I am not sure if it’s all about control. Sometimes life throws curve balls and credit cards are just too easy to lean on. We are really working on finishing our emergency fund (3-6 months of expenses) so we always have a cushion. Thanks for your inspiring post earlier in the week!
a couple of years ago my family decided that we are only gifting to the kids. however I recently found 3 siblings from my biological family who also have children and it was brought to my attention last year that even though my husband’s family doesn’t get together for Christmas, that the children on that side also exchange gifts (our son is the youngest on that side, and I never paid attention before apparently). So I was astonished to find out that I have 22 children to buy for this year. So everyone, except the babies, is getting jolly time popcorn in the aluminum pan and “snowman soup” (hot chocolate). So I am able to just add that stuff to my grocery bill a little at a time. No credit card for me
Jennifer – 22? Wow! Sounds like you found the perfect gift for everyone. It is so smart to plan ahead like you have.
I agree with credit cards are not needed.
However, they can be used to accumulate points, which means that if you keep your balance at zero, and never pay interest, you still get the rewards.
We have only two credit cards: Amex which has over 4000 air miles on it, and Canadian Tire.
In Canada, Canadian Tire is a top store that gives away Canadian Tire Money. If you don’t use the credit card, you get the money. I hate counting all that money, so by using the credit card, the rewards go on the card. Not only that, but it can be used at the Canadian Tire Gas station.
If you are a real minimalist, and shopping hardly happens , and you don’t use a car, then these are probably not needed.
However, if you own Real Estate Properties, then a vehicle is pretty much needed as well as tools, and repairs. So why not get the extra rewards????
Also, I imagine that everybody buys groceries, so why not get some rewards for those also.
So basically to sum this up, if you are in complete control (which you should be) then it is ok to use credit cards for rewards, on expenses that you are going to make anyway, like groceries, gas, clothes, travel, bills, etc, as long as you have the cash to pay them off right away.
Also like to point out that their is good credit and bad credit. Bad credit is credit that doesn’t make you money. That is the credit most people have. Good credit would be credit that makes you money, and that you pay off, but not with your money. (example: real estate with positive cash flow, or a business venture that is making money).
Good credit can be risky though, if the business turns negative, then the good credit turns into really bad credit!!!
Justin, Thanks for weighing in. I don’t if the points thing is different in Canada, but in America, you really have to spend quite a bit to make the points pay off. Sometimes I think the points thing gets to be a bit of a game and you spend more to get more, which is the exact opposite of what I want.
In terms of being in complete control, I don’t think that is possible. Being disciplined is one thing, but I don’t think anyone is in complete control. You never know what’s around the corner.
I don’t think accumulating points is a good enough reason to use credit cards. (but I know lots of people that do!)
Accumulating points is definitely not a good enough reason to use credit cards.
But if you are going to use them, then why not take advantage and the get the best rewards possible.
By keeping a zero balance on credit cards, they are great to use, as long as you have the cash to pay them off immediately.
Also, they are great for businesses and leave behind a great paper trail (unless your trying to avoid a paper trail of course).
I actually got scammed about 10 years ago on ebay when it first came out, and visa reversed the charges and gave my money back!!!!
You shouldn’t be buying things just to get points, that is stupid.
Canadian Tire is the best for giving back money, amercian express not as good.
We destroyed our credit cards a little over a year ago. This year, my little family quickly agreed to skip the gift-giving, even my parents. We’re all fed up with the consumerist tradition and what has become a ridiculous guessing game of present selection. I’ll make some things to keep on hand for holiday visitors or to take with when we visit. My Black Friday was spent curled up on the sofa with the cat, lots of tea, a PBS Mystery! marathon on t.v., a fun book to read, etc. A total day off, and it felt soooooo good
Meg, I had the day all to myself yesterday but used it for a really good pre-Christmas deep cleaning!
If we can’t pay cash for it, we don’t need it. Plain & simple. I’d rather live a life with less than live a life in debt.
Courtney-
Now that I’ve found all these awesome “Less is More” blogs: I realize I’ve been minimalist in gift giving since this happened-
I bought my mother a lovely crystal picture frame for Mother’s Day and found it packed away several months later-unused. Since then, I’ve only bought gifts which are experiental and/or useful. Examples: Bf got a new electric razor 4 years ago and he uses it daily, and last year for his birthday/Christmas I got him certified in scuba diving and took him to Grand Cayman. His joke is: “I’ve never seen or smelled the ocean, and you wanna take me and throw me off a boat to go a hundred feet down? Geez!”
He LOVED it. Trip of a lifetime for him.
For my family I have gotten things like: massages (from me and pro), a big batch of chicken noodle soup to share, gift certificates for stuff they need at places, movies they wanted, etc. This year I plan to make bunches of apple butter to distribute.
(Should’ve done it the apple orchard harvest way…)
Anyway! Thank you for allowing me to ramble. I hope you’re having a lovely holiday season, and I look forward to more inspirational posts!
Hey together,
to miss the credit card is a very good tip. In Germany we don´t use it as much often as you do it in the USA. But the problem is in both countries the same.
You don´t recognize the money you spend on gifts or anything else, when you use your creditcard! And that is a further problem.
In January you not only working on getting thin, energetic and wealthy! You also have to spend the money for the gifts and all you have bought!
Great tip, thank you very much for that!
We’ve just started our path towards minimalism, and we’re going through a big purge to get rid of all the junk we’ve accumulated over the years. We’ve sold some stuff online, and we’re having a garage sale to get rid of the rest. I’m hoping we’ll raise enough money to pay for all our gifts, and to make it easier for us to buy with cash.
I use the credit card for gas and major purchases but always pay it off at the end of the month. Every month. Every time. I know the statistics say that people spend more if they use a credit card (can you point me to the article or Dave Ramsey comment?) but my husband and I really aren’t shoppers and plan ahead of time for everything we buy from clothes to food.
I wish someone had told me this when I was 22 and spent probably $1000 on credit just buying gifts for my first Christmas with my girlfriend. Technically, I’m still paying for those gifts 5 years later because I got stuck in the debt cycle. I can’t use credit anymore because I had to sign up for debt management which closed all of them. I can only buy what I can afford. It’s really hard sometimes, and I long for the days of magic money more than I care to admit, but I got myself into this and have to deal with the consequences. So good advice! Wish I’d known you back then!
My wife and I use credit cards all the time. We never spend more than what we can pay at the end of the month. Our credit card has no annual fee, and pays us 3% back, so I figure I should make the credit card company work for me. Credit cards make it easy to shop online and send to family out of state, without having to waste time driving from store to store. Think of the gas savings and helping the environment. I love your blog. I just found it through Zen Habits.