3 Tips to lead your life without credit cards

Many of us have made credit cards our way of life and we can't imagine our life without them.  However, after the recent economic crisis, a large number of people are taking a stand against it. They have started believing that credit cards don't have to be the way of life. If a person properly manages his or her finances, it is possible to live without credit cards.

Here are 3 tips on how to you can achieve this goal:

• Know your income and expenditure: You should be aware of your monthly household income if you don't want to fall back upon your credit cards.  Most of us don't keep a track of their financial expenses every month. As a result, we start living beyond our means. It is here that the credit cards come into play. If you want to avoid credit cards, you should start planning your expenses as per your income. It’s better to spend less than your income. You can save the surplus amount for next month's purchases. Thus, you don't have to bank upon your credit cards any further.

• Create an emergency fund: You must be thinking how you'll cope up with a sudden emergency if you don't have credit cards. Well, your emergency funds will come handy in such a situation. If you wish to lead a life without credit cards, it's a must for you to set up an emergency fund. This emergency fund will come handy if your car needs a sudden improvement or your freezer breaks down. Thus, make sure that you make regular contributions toward your savings account so that you don't have to take the help of a credit card.

• Positive thinking will help a lot:  If you want to be successful in living without credit cards, then you should change your way of thinking. Think positively to believe that you will be able live without credit cards. You should understand the fact that if you don't use credit cards, you won't have to pay interest on it. Thus, you'll be able to save the money which you'll otherwise pay as interest to the credit card companies. Once you decide to live with cash only, you’ll find that things will become quite easier with the passage of time. You'll have to be positive enough to become used to a new way of lifestyle. In the end, you'll be able to live without worrying about enormous credit card bills.

Hope you find these tips helpful and lead a debt-free life with no interest to pay!