The whole goal of getting out of debt is simplified if you are willing to cut up the credit cards and use cash only. This advice comes straight from the desk of Graeme Holm, Director of Infinity Group Australia. The financial service is backed by Mr. Holm’s 17 years of experience in the banking industry. He backs up what he says. His advice is summed up in the following key points.
- Stop Using Credit Cards – You must stop using credit cards because it all comes down to psychology and it is extremely easy to just spend the money when it is someone else’s.
- Cash is Simple – Everyone talks about getting on a budget, but if you are spending money and not keeping track of interest on cards, then it will quickly spin out of control.
- Don’t Buy on The Fever – If you cannot afford it then it should not be purchased. Many purchases simply are bought with emotion and this can be eliminated if cash is used alone.
- Consumer debt is bad debt – If you are spending money that you do not have, then it is almost impossible not to slip down the slippery rabbit hole of consumer debt.
- Technology can fail – You may walk around a store and get all your groceries in one basket. What happens if you get to the register and the machine doesn’t work? Fail again. Cash is technology fail proof.
- Extra change in the Piggy Bank – All those extra coins can quickly pile up and if you keep them together in one spot, then you will be able to have a nice payday after a short while.
The truth is pretty simple when it comes down to the math. If you are needing to eliminate debt, then you must stop putting yourself into more debt and get into a financially stable position. More debt is just more money that you have to pay back. So, go with cash and save yourself a headache and the heartache of being a slave to debt.