Living Debt Free In The Age Of Credit

Living debt free in the age of credit is not impossible. Just because nearly everyone is in debt does not mean you have to be. Most people, however, tend to think “Right. Reduce my debt. Can I actually do that?” Thankfully, the answer to this question is yes. Anyone can reduce his or her debt and learn to live a debt free life. The thing is, it takes a lot of hard work and self discipline to live debt free, and most people are not willing to pay the price.

Debt free living, on the other hand, does not mean forgoing all forms of fun and sticking with an austere budget. It does mean living within your means. It means saving up for something instead of buying it right away (a foreign concept to most, I know). It means taking your credit cards and putting them away in a locked drawer. It is a well known fact that people spend more with credit cards than they would spend if they used cash (source: NPR).

Some people feel that credit cards are a necessity in this day and age. The common misconception is that a person who does not own a credit card will not be able to rent a car or buy a house. However, both of these misconceptions are simply not true. A person who wants to buy a home can do so without a mortgage. All he or she has to do is save up the money over a period of time. Most real estate agents and sellers do not care where the money comes from as long as the buyer can pay for the home.

Renting a car without a credit card is also very doable. A debit card can usually be used in place of a credit card when it comes to car rental. There are also cash only car rental companies which can be easily found online.

Living debt free in the age of credit takes self discipline and sacrifice, but it also has many rewards. A person that forgoes the use of credit cards will obviously have a much easier time staying debt free. Credit cards are an integral part of our consumerism-driven financial system, but they do not necessarily have to be used in all cases. If you can control yourself, a rewards credit card could be quite rewarding. But by forgoing credit cards and sticking to a reasonable monthly budget, a person can reduce and eliminate debt from his or her life and keep free from the stress and pressure that being in debt can bring.