How to Stop Using Credit Cards

Once you start using credit cards, it can become hard to stop relying on them. They're convenient, they're easy—and they often trick you into forgetting they're tied to real debt.

Once you borrow and carry a balance, though, you have to pay interest. You also commit future income to covering your credit card bills. This leaves you with less money to spend, so living within your means becomes more challenging. This can create a trap.

You can spring that trap with smart tactics and discipline. Getting rid of your credit card debt should get a lot easier if you're not adding to it. Here are some things you can do to give up your cards for good. 

Create a Budget and a Plan to Pay Off Your Balances 

Credit card minimum payments are often calculated to keep you paying as much interest as possible for as long as possible. It's really hard to get out of credit card debt if you only pay the minimum, so you'll have to free up extra money to pay more each month. 

Creating a budget is usually the first step in this process. You can track your current spending and see where your money is going. Then, you can plan to limit spending on non-essentials and make large extra credit card payments.

This may mean you'll have to cut back on some things—at least for a while. You might also consider getting a second job or side hustle for a few months while you pay off debt. Remember that all of these changes can be temporary. As you get out of debt and pay less interest, you should have more money for extras while still living within your means. 

Stay With Your Strict Budget Until You Have an Emergency Fund 

Once you've paid off your current credit card debt, it's tempting to start spending again. Before you do that, though, you should first save up an emergency fund. 

Without money set aside to cover emergencies, it will be hard to give up credit cards for good. A single unexpected expense could cause you to end up back in debt. 

With a few months' worth of emergency money saved, you could be in a better position not to borrow.  Your emergency fund should help keep you out of debt when a problem happens. Prioritize building up this rainy day fund before you loosen the reins on your spending.

Consider Closing Down Cards or Making Them Hard to Use 

It can be hard to stay motivated when paying off debt, and even harder to commit to not using credit cards once you're debt-free.

If you don't trust yourself to avoid carrying balances, you may want to close down your cards as you pay them off. You might lose out on some card perks, but you'll also stop paying interest—and the interest expense often costs more than the value of rewards. (Tip: The right way to make money with rewards cards is to avoid carrying balances and not pay interest. Then, the rewards are free money.)

Canceling a credit card (you still have to pay off its balance) is one way to stop charging, but it's pretty drastic. You may not want to scrap access to emergency cash, and your credit score is likely to take a hit as well. 

Consider taking steps to simply make them more difficult to use impulsively. You can take the cards out of your wallet and hide them. Most issuers let you easily lock or freeze and card through the mobile app so it can't make purchases until you unlock it. 

Or, you can get really serious and literally freeze your card in a block of ice—that way you have to wait for it to melt for you to use it. You'll also want to delete any saved cards in your online accounts and disable any one-click payment options.

Cutting off your access could be the best approach if you struggle to stop charging. And you'll probably want to address the problem for your future financial health. Local governments, nonprofits, and some businesses often offer free or cheap personal finance education and/or counseling services. 

What Happens if You Stop Using Credit Cards Completely?

So, what happens if you stop relying on credit cards because you've paid off your debt and are living within your means?

You lose the opportunity to earn rewards and the consumer protections that cards can provide. You can minimize this downside by getting a debit card that offers fraud protection and rewards. Debit cards are not required by law to offer the same level of protection as a credit card, so you'll want to check your bank or credit union's policy. 

At the same time, you'll avoid paying interest on purchases because debit cards don't charge it. If you assume control of your spending and debt management to the point that you don't carry balances, though, interest won't be a concern.

Remember that debit cards won't help you build credit history. However, many secured credit cards report to credit bureaus, and some fintech companies also offer credit-building debit cards, which could help you add good tradelines to your credit file. If you have an auto loan or mortgage that you pay on time, this could also help build your credit score. 

Another option is keeping one or more cards that you don't carry or use for purchases. By setting up a recurring charge like a streaming service or utility bill, and then paying it on time each month (perhaps with autopay), you build credit without the temptation to spend. 

The bottom line is that there are ways to get most of the benefits of credit cards without having credit cards. And if you're not confident that you can avoid overspending or carrying balances, the limited benefits of credit cards don't usually offset the interest charges or the potential for debt management problems.

Think About Getting Professional Help

If you don't see a way out from under severe credit card debt problems, consider professional assistance. From debt settlement to bankruptcy to credit counseling, there are services designed to help with overwhelming debt issues.

Freedom Debt Relief, for example, offers support in settling debt when your cards are unmanageable. It's worth considering this help if you need it, so you can get rid of your debt for good.