January 18th, 2007 
NCN
I have not used a credit card in over two years. So far, I have yet to find myself in a situtation where I had to use my credit card. (I still have one, active, credit card account. I keep my card tucked away in my wallet. I’m not sure it actually works anymore. I do not plan to find out.) I do not advocate closing credit card accounts. I have an account that is open and in good standing. I just don’t use it. What have I learned about NOT using my credit card?
Ninety-nine percent of the time, a debit card works just as well as a credit card. (Please, no comments about the security features of a credit card vs a debit card. Evil people will do evil things with whatever tools they can find. Every single person on the face of the planet is one step away from having all of their financial information exposed, exploited, and abused. If you entertain the idea that you are somehow “safe” from the realities of identity theft and fraud simply because you use a credit card, you are sadly mistaken. The true pain of identity theft has as much to do with the “violation” as it does with the amount of money stolen. Many banks are stepping up to the plate to give the same protections to debit cards as they do to credit cards. Be smart, shop with reputable people, and cross your fingers.)
Writing a check or spending cash at a grocery store will make you feel one of two things: Foolish OR Empowered. I love to stand in line, with people behind me waiting to check out, and count out my exact change to the cashier. Contrary to popular belief, this takes just about the same amount of time as it does to swipe a card, grab a pen, sign a receipt and put the card back in your wallet. Also, spending $100 in cash “hurts” a little bit more than swiping a card for $100, and it keeps me disciplined.
I have reserved automobile rentals and hotel rooms without any hassle using my debit card. I then pay my bill in cash or with a check.
I never get a bill from a credit card company.
I never have to worry about late fees, lost payments, finance charges, messed up accounting, or interest rates.
I miss out on cash back, rebates, and credit card rewards. Oh well.
I have not found that many places give discounts for using cash. In fact, most places would rather that you use “in-house” financing. But, in person-to-person transactions, cash rules. I’ve paid for auto washes, yard work, and plumbing with cash, and received a discount each time.
Paying cash for a dinner with a group of friends is always interesting. In almost every case, if I pick up the check, it starts a conversation. People are simply amazed that I don’t use plastic. Some are actually “offended” by the fact that I don’t take advantage of the “float”. I’ve had more than one person tell me that I’m “crazy”. On the other hand, I’ve had a bunch of people say, “Man, I’d love to live that way. I use my credit card way too much, I’m behind, I’m broke…”
It feels cool to have some real money in your pocket.
Did I mention that I get no bills from credit card companies? Oh yeah, I said that already. Just checking.
I have tried several “cash management” systems, but an old fashioned money clip works the best for me. I wrap my “folding money” around my license and my debit card, and I’m good to go. I usually just leave my wallet in the glove box.
I use online bill pay and I only have to write about 6 paper checks per month. I’m going to move to a system where I pay our daycare provider via online bill pay, and I’ll be down to 2 paper checks per month.
People tout the “organizational” benefits of credit cards. I simply keep receipts and bill stubs, and I have my online bill pay records for taxes.
Final word: I really, really enjoy the freedom of not having to use a credit card. I like having and using actual money. Truth be told, I enjoy being a bit of an “oddball”. Cash rules!
Edit: In response to all of the feedback and comments (Thanks Lifehacker!), I’ve written this post: People Sure Do Love Their Credit Cards. Take a second and check it out!
Edit: When I moved my site, the comments were deleted. Sorry!
Posted in 
It’s nice to see I’m not the only one… At one point I had 8 credit cards!! No longer. Closed them ALL. I have not used credit card since 2003. Paid everything off in 2004. Never had an issue where I felt “deprived” by my lack of credit card usage. Debit Cards work just fine on the rare exception where cash is not accepted. I also do not feel I’m somehow missing out on the “New Car” feeling since my car was paid for in cash.
I guess it could be the fact that whenever I drive past someone in a massive 15mpg SUV that cost $37,000+ Interest Payments I just think how I drive a mint condition Honda CRX Si that gets 40mpg that was purchased with CASH. My wife and I love it and the vacations we take with the $$$ we save.
Then again it could be the fact that I have $22,553.00 in my bank account and ONLY pay Savings, Rent, Power Bill, Food, Gas, Netflix.
I don’t know.. I guess people like us who live debt free are just “Crazy”.
quit using em a while back. now it’s PayPal and on occasion debit when i order online. normally don’t post another’s site but…if ya want a rebate i love a site called mr rebates
[...] apply for a credit card and receive a 10% discount. As I’ve written about before, I’m not interested in credit cards, especially high-rate store-branded credit cards. But, I’m also not interested in being a [...]
[...] Americans are not able to afford the lifestyles they either had or thought they could through the use of credit, at least credit other than the plastic cards we, as a country, are so fond of. With the reality of [...]
“I miss out on cash back, rebates, and credit card rewards. Oh well.”
Yeah, oh well. I pay all of my credit card bills in full every month because I’m a responsible spender, and I get hundreds of dollars back a year for paying all of my utilities, medical and dental fees, etc. on a rewards card.
If you need to use cash to be a responsible spender, you’re probably smart enough to use a credit card responsibly. If you’re irresponsible it probably doesn’t matter if you carry cash or not.
No credit cards for me either. I love paying with cash. When I’m standing inline watching people pay with credit cards, I’m thinking “what a pathetic way to go through life.” I’m financially free and sleep great at night. No credit card bills or worries for me!
The author of the blog above said the following and I quote: “I miss out on cash back, rebates, and credit card rewards. Oh well.”.
So what you’re really saying is that you are leaving money on the table, right? And while I agree with you that people should live a debt-free life, I disagree with you on the approach that “all credit cards are evil”. I pay everything, and I mean everything with my credit card throughout the month. Once the bill comes though, it is paid in full. Not only doing this provides an additional safety feature (should I ever want to dispute a charge), but this also raises my cash back rewards. As a matter of fact, in 2008 alone, my TOTAL money back received from three credit cards totalled more than $2.200.!!!!
And oh by the way, I do live a completely debt-free life too!
[...] in my wallet, and just leaving it there, taught me to live on the money that I actually make. I do not like credit cards, and I am of the firm belief that most people would be better off without [...]
I’m with you…it’s been 3 years for me w/o credit cards. I had to learn the hard way but I’ve learned. Nice to find like mindd people.
I’m with you…it’s been 3 years for me w/o credit cards. I had to learn the hard way but I’ve learned. Nice to find like minded people.
Larson Moraes says:
January 3, 2009 at 6:14 pm
“So what you’re really saying is that you are leaving money on the table, right? And while I agree with you that people should live a debt-free life, I disagree with you on the approach that “all credit cards are evil”. I pay everything, and I mean everything with my credit card throughout the month. Once the bill comes though, it is paid in full. Not only doing this provides an additional safety feature (should I ever want to dispute a charge), but this also raises my cash back rewards. As a matter of fact, in 2008 alone, my TOTAL money back received from three credit cards totalled more than $2.200.!!!!
And oh by the way, I do live a completely debt-free life too!”
“Jason says:
May 12, 2008 at 2:10 pm
“I miss out on cash back, rebates, and credit card rewards. Oh well.”
Yeah, oh well. I pay all of my credit card bills in full every month because I’m a responsible spender, and I get hundreds of dollars back a year for paying all of my utilities, medical and dental fees, etc. on a rewards card.
If you need to use cash to be a responsible spender, you’re probably smart enough to use a credit card responsibly. If you’re irresponsible it probably doesn’t matter if you carry cash or not.”
Okay Einstein and Sherlock,
Your comments are very valid and yes, I’ve heard them many times from other people. Let me give you a scenario that happen to a known citizen.
A family of four, stable income, vehicles on credit, big house on credit, furniture on credit and the list goes on. They paid their credit on time being well organize and responsible with credit card payment.
Suddenly one of their kids gets sick.
Small boy of six years is diagnose with cancer. Not only is treatment expensive but one of the parent has to quit their job in order to take care of their child at home. Health insurance company does not cover expenses.
You feeling were I’m going with this?
Debt starts pilling, they have to sell the house, they have to sell a cars and return them to the dealer, they have to spend less and take care of the [unfortunate situation].
And now they own more then 100,000 dollars on credit card bills +.
You see, folks, some people can lose it all at sun rise. Not only is depending on credit a loss but the desperation grows largely.
The father shot himself. He preferred to kill himself then to see his kid die slowly. It’s not about being responsible. It’s life being life.
Sometimes you just don’t know. That is why you do not buy things you do not need because all you need in life is to enjoy it and leave healthy.
I think that Larson Moraes and others who agree with him missed the boat on this one. You can be a responsible person with a credit card, but that does not mean that you will not find yourself in a hole, as many people with perfect credit and using credit cards responsibly are having their interest rates go higher as well, due to credit cards running scared from the upcoming legislation…this is all proven as we receive news reports from consumers on how the credit card companies are now going after the “responsible” consumers to get more money. So, do not think that you are immune from this just because you pay your credit card every month. Some people do not realize that it is not about how wonderful you are with paying off your balance every month, because every other week we hear in the news that those same wonderful people are experiencing the same treatment as others who were not as responsible. So, the best way to go is to not use credit cards, unless you are really in an emergency situation. When you use a credit card, or think you need one, you are using a crutch. What is the point of having a credit card, something that will add interest to your balance if you make one mistake in paying late, or raising your rates for no reason? If a debit card can work just as well, and a debit card comes with less risks than a credit card, then why not use a debit card? A debit card can not raise your interest rate at the drop of a hat. Paying by cash is great as well…actually more admirable than flashing a credit card, or feeling like you “just have to have one”. Unless you need a card for an emergency, if you just have to have a credit card, then you are indeed addicted to that lifestyle, even though you may make your payments every month. So I say, don’t use it, use cash and debit.
I hate credit cards. They seem like a hassle. I used to have one and like others I was responsible and paid it off right away. Then I realized it was just as easy to pay with cash and not have to bother with the middle man (credit card). It was just one unnecessary bill I had to pay. Cash rules and where I can’t use cash, I have a debit card. I agree with this article 100%.