Want to Win? Don’t Play with Credit Cards

Just Say No to Credit cardsJust say no to credit cards; it’s a losing game. Yet, no sooner do these words leave my mouth, than I hear voices chiming in to tell me: “But I get ‘free’ miles.” “I pay the balance off every month.” “I only use it when I travel.” “Credit cards are necessary for building credit.” Oh, how successful the marketing of credit cards has been.

Trust me; the math always works in their favor. Incentivizing you with miles is a smart business strategy aimed directly at your wallet, and perhaps, more importantly, your mind. You believe you are getting something for nothing while such offers are no more than a carrot to move you closer to gaining your business loyalty, and ultimately, your personal testimonial for their product.

How is it that people are so naïve as to not realize the credit-card banking endgame is to make them mentally and financially dependent, long term? In the meanwhile, credit cards provide families with the illusion of wealth and perpetuate impulsive buying at “credit card premium” prices. Like playing with fire, you can easily get burnt, even when you think you are most in control.

As you are strategically addicted to the incentives and the “safety net” concept of credit cards, their banks and the businesses you buy from use proven market research to extract top dollar for their products and services. They have learned that you willingly pay more when using plastic than when handing over hard-earned cash.

“One of the most well-known studies, published in 2001 and titled ‘Always Leave Home Without It,’ showed that in certain contexts, people were willing to pay up to twice as much for the same item when paying with a credit card instead of cash.” The New York Times, October 10, 2014

You pay more while those you benefit laugh all the way to the bank! The above study also found that (temporary) interest-free loans, of those who pay off their balance every month were not immune; they, too, overspend and pay the “credit card premium.” The mental dependency, justification of credit card use, and chronic overspending, speaks to marketing success; it has been able to psychologically instill in “consumers” the importance of spending more to keep up with social expectations.

Most people opt-in and obey these marketing messages because marketing preys on the fact people naturally want to be well-thought of. To opt-out of these surround-sound commercial suggestions takes courage and determination. Your mission, should you accept it, is to opt-out, as a whole-family experiment, and discover what it actually takes to live within your means. What does it mean about how you spend? How you earn? How you save? How you invest? Answers are there for the asking.

Unless you happen to be one of the fortunate wealthy with no financial concerns, behind closed doors, you are likely to pay the price of mounting debt and the loss of personal and spiritual well-being that goes hand-in hand with today’s economic environment. Just remember: You don’t have to “go along to get along” when it comes to the sophisticated marketing techniques used by credit-card banks to get and keep you as a customer. You DO have a choice; it’s just not the popular one.

And if you are wondering, this author does not own a credit card.

3 Responses to “Want to Win? Don’t Play with Credit Cards”

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  1. Ross Luxon says:

    I will admit that I buy things I do not need because I have a credit card…But if a store gives discounts for cash I use cash…..I swore I would never use a credit card for purchases at fast food but I do because I don’t want to deal with the change…I am one of those strange individuals who does not buy what I can afford and probably spend too little of my money on myself….and yes, on rare occasion I make a mistake and that always costs a lot more than any reward I receive for use of same but I thank you for bringing this to our attention and I hope it will cause many to rethink their use….Ross

  2. Robert says:

    I remember doing our taxes back in ’91 and announcing to my wife that we had spent over ten grand in cc interest that year. It was the moment we took ourselves out of the system. The cost of living without credit cards? Eyes wide open to the massive control exerted by those who profit from manipulating minds….and living more simply. Thanks, Susan, for your persistence on the subject of financial sobriety.

  3. terry says:

    Yep, and even if you do pay it off all the time, as I did for decades, eventually there is a blip, for whatever reason, and you end up giving THE BANK some of your hard earned cash for…?????????????? What? Why?

    There is a good reason Einstein found the creation of compound interest the most amazing invention of his lifetime. Smart guy. Knew something about numbers.

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