Never Pay Credit Card Fees Again

The title grabbed your interest right? No pun intended. It should. I'll get to the point; paying interest fees, late fees, annual fees and penalties on credit cards may not be a sound financial plan. It depends on you and how you manage your finances. At one point, I had over 14 credit cards so I know what I am talking about. Credit card companies are the best marketers out there. They study and research the habits of their card owners and know there is a high propensity of you not paying the entire balance off.

Larry Burkett, founder of Crown Financial Ministries, teaches that credit cards are alright, IF, you can pay the entire balance off every month. By following his teaching, you might eliminate the interest fee and late fees. But the second you choose to NOT pay the full balance at the end of each month, your trapped.

Dave Ramsey, founder of Financial Peace University, teaches that credit cards are not a necessity, especially if you are one of those that don't pay it off each month. Cut them up Dave says! You can do everything without credit cards that you can with them. Dave is an international traveler and does not use credit cards.

I have always been told that you have to have at least one credit card to get by in life. I believed that myth for most all my adulthood until I starting teaching FPU. I have lived the nightmare of credit cards with the astronomical interest rates because I was one day late, ridiculous late fee amounts, penalties, and maxed out limits.

Five years ago, while teaching FPU, I cut up 14 credit cards in front of the class. I was a nervous wreck but knew deep down it was the right thing to do. From that point forward I have paid cash for everything and within 24 months we became completely debt free of all non-mortgage debt. We paid off over $40k of debt by paying cash and using Dave's FPU plan.

Myth: you can't rent a car without a credit card. I have done that multiple times. Some put a small hold on your account but that gets refunded within 3 days.

Myth: you can't book a hotel without a credit card. I have done that for years. If you pay for the room in advance or pay the day you check out, there is no hold on your account.

Myth: I earn miles and points that save me money. Dave has found that a high percent of people never use them plus if you are one of those that can't pay the entire balance off each month, its not worth the miles and points.

I have not paid any credit card interest fees, late fees, penalty fees, annual fees, or have a credit card that's maxed out and unusable for over five years. How about you?

NOTE: I highly recommend you attend FPU before attempting to just cut up credit cards. There is a process and a plan to follow that works that includes cutting up your cards.

Comments? Are you living debt free?