Kick the plastic habit

Whether you’ve already quit, or you’re simply considering it, nixing credit cards can be a difficult process.

Perhaps you’ve developed a strong dependence on credit and feel as though you need it to survive, or maybe you simply feel as though your credit card is a safety net and it will be there to catch you when you fall. Regardless of your level of dependence, getting hooked on credit can be a dangerous habit that’s hard to break when it hasn’t been used responsibly.

The following are a few tips to help you kick the plastic habit:

  • Shelve your credit cards. If you still have open credit card accounts, consider carrying cash or your debit card for daily use instead. Leave credit cards at home and only carry one when you plan to use it for a larger purcha
    se or something that you have already reserved for your credit card.
  • Tighten your budget. Create a real budget and include even the smallest expenses. Maybe filling up at the station or picking up a few things at the grocery store were once expenses that would previously go unnoticed, but with today's high gas and food prices, even smaller-ticket items add up.
  • Cut back on non-essentials. The easiest way to free up extra cash is to know the difference between needs and wants, and make a conscious effort to do without those things that you don’t need such as eating out, vacationing, and shopping for discretionary items such as furniture and electronics. You may even consider getting rid of cable. With programs such as Hulu and Netflix, it's much easier to cut the cables and maintain access to your favorite shows — and you'll save a nice chunk of change!
  • Create a plan to pay down debt. Sometimes it’s easier to break a habit when you have a goal you are trying to accomplish. Make a commitment to pay down a portion of your debt within a certain timeframe, and make sure to get your family involved in working towards a shared goal — you can help keep each other accountable.
  • Build an emergency fund. One of the biggest credit temptations will come in a time of crisis. This is why it's imperative that you have emergency savings on hand. Many consumers lack an emergency savings fund because they've been focused on putting extra funds toward debt. While this is not a bad thing, remember that feeding your own piggy bank will help you rely less on credit when a financial disaster does strike. If you aren't prepared, you could end up back in the same place you started.

Finally, if your financial obligations become overwhelming, don't be afraid to seek help! MMI has counselors available 24 hours a day, seven days a week to help assess your situation and offer the best options for needs.

Jessica Horton is a former copywriter and community manager at MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.
  • The National Council of Higher Education Resources (NCHER) is the nation’s oldest and largest higher education finance trade association. NCHER’s membership includes state, nonprofit, and for-profit higher education service organizations, including lenders, servicers, guaranty agencies, collection agencies, financial literacy providers, and schools, interested and involved in increasing college access and success. It assists its members in shaping policies governing federal and private student loan and state grant programs on behalf of students, parents, borrowers, and families.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.