Living Without A Credit Card – It’s Been 3 Months

I stopped using credit cards back in July (about 3 months ago) and have been very pleased. I purchased a new bicycle and paid for some licensing since July so there have been some expenses that I could have put on a credit card in order to get mileage points. However, I’m not a big traveler and the peace of mind of not playing the credit card game is totally worth it.

I should also mention that when I did use credit cards I would always pay off the balance before it could accrue any interest. Really, the only advantage to using a CC was to get mileage points.

I now just carry my debit card and make all my purchases directly on the debit card which of course also has a MasterCard logo to run as a credit card. I don’t like using cash so I am not planning on changing to cash only. I have one friend who does everything in cash… seems too frustrating for me. 

My monthly expenses are in the $2,000 range, and nearly $800 of this is rent payment. Therefore, I wouldn’t stand to benefit much in terms of accumulating points anyway. If one day my expenses go back up I suppose I’ll revisit this decision.

I have been able to use Personal Capital (similar to Mint) to keep track of my expenses. I still prefer YNAB but because I don’t have a personal computer (only a work computer) I’m not able to install YNAB.

I don’t know this for sure yet but I do feel that my spending will be lower without a credit card. Our minds have a way of tricking us into thinking we are spending far less than we are actually spending. Compounded by having bills paid by a credit card, payments disappearing in a sea of statements I find it’s easier for me to make more purchases without really keeping tabs on my spending.

What do you use for your expenses, a credit card or your debit card or cash?

Has the mileage game been profitable for you?