Five Reasons You Need to Avoid Credit Cards and Switch to Cash

Five Reasons You Need to Avoid Credit Cards and Switch to Cash

The way the idea of a credit card was sold to us made it seem revolutionary. It seemed like the ultimate solution to all our financial problems. However, people have now realized that credit cards can ruin lives and tear up families if not used in the right way. 

They seem innocuous and extremely convenient but they come with long-lasting repercussions that ruin your financial health. If you want to know more about how credit cards can affect your finances in the long run, you have come to the right place. Here is a list of reasons why you should avoid using credit cards in the future:

Credit Cards can Hurt Your Credit Score

Credit card debt and bad credit issues go hand in hand. The higher your credit card debt becomes; the worse it will be for your credit score. It is because when your credit card debt becomes higher, you have to pay more and more money in debt repayments that increases the probability of you missing a few. It doesn’t have a good effect on your credit score. 

Plus, closing your accounts can shorten your credit history which will again end up hurting your credit score. So, once you get stuck in the web of credit cards, you will have a very hard time getting out because everything you do, goes against you. 

They Encourage Impulse Buying 

Credit cards are one of the biggest reasons for impulse buying. If you are on a strict budget that you have to follow every month, you don’t go around spending your money on useless things. On the other hand, with credit cards, you don’t have to worry about your monthly budget and you end up buying things that you don’t really need. 

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They Come with High-Interest Rates 

Credit card debts have some of the highest interest rates. Plus, if you use your credit card to pay for everything, you will end up paying a lot more than you would have otherwise, even for something as small as a cup of coffee. 

They Might Lead to Bankruptcy 

If you lose your job or are hit by a massive medical bill, you will have a hard time paying your credit card bills and once they start piling up, there is no stopping them. You might end up having to declare bankruptcy which will destroy your credit history which might take upwards of ten years to recover. 

They Can Disturb Your Monthly Budget

If you want to bring financial discipline into your life, you have to set up a budget for yourself and start following it strictly. However, If you keep using credit cards you will never be able to stick to a strict monthly budget which will keep you from achieving your financial goals. 


In conclusion, it is best for you and your family to steer away from using credit cards as soon as possible. Not only will they destroy your peace of mind in the short term, but they will also ruin your financial health and leave you with no financial security in the long run. Hence, it is best to rely on hard cash whenever you go out shopping. 



IITSWEB is the Chief Business Development Officer at IITSWEB, a Magento design and development company headquartered in Redwood City, California. He is a Member of the Magento Association and an Adobe Sales Accredited Magento Commerce professional. Jan is responsible for developing and leading the sales and digital marketing strategies of the company. He is passionate about ecommerce and Magento in particular — throughout the years his articles have been featured on Retail Dive, Hacker Noon, Chief Marketer, Mobile Marketer, TMCnet, and many others.

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