Is Life Without Credit Cards Right for You?

Christ Church Communications Team
A Conversation with Anthony Dickerson (Contributor), SPHR

The majority of Americans overspend partially because credit card companies make going into debt so easy. You end up spending way more money than you intended by the time the bill comes at the end of the month. It’s like you’re living your life through a rearview mirror! When your paycheck comes in, you’re living in the past and paying for things you’ve already done, movies you’ve already seen, and food you’ve already eaten.

Credit cards represent a mix of opportunity and risk. Some people love the convenience of using credit cards and stop using cash and debit cards altogether. Others become “almost religious” in their conviction that credit cards are evil. Knowing yourself—and your spending habits—is the key to deciding whether to use credit cards. In the end, the decision is a personal one.

Anthony Dickerson, the Chief Strategy Officer at Christ Church, shared his personal story of losing his job and being unemployed for two years. He said it got to the point that meeting monthly expenses became very challenging. Anthony and his wife Larisha decided to sell their home, move into an apartment, and borrow some money from a friend. It was 10 years ago when Anthony Dickerson came across Dave Ramsey’s financial management videos. While the financial principles of Dave Ramsey seemed good, Anthony admitted that he thought his own plan would get them through this difficult time in their lives.

Anthony said: “When you’re the head of the family, pride, and ego at times, get in the way from gleaning, learning, and practicing the advice from others.” According to Anthony, handling credit cards was never a challenge. If he charged $400, he would simply pay the bill in full the following month. But, Dave Ramsey’s financial principles are counterculture of what we may be used to.

Dave believes we do not need to have credit cards, and the first step to getting control of your finances is to cut and cancel all credit cards. Following this and a few of Dave Ramsey’s other financial steps, Anthony said that he was able to pay off $25,000 worth of personal debt and is now poised to pay off their home by this summer. He says that paying everything in cash helps him to feel the impact of what he is purchasing. To meet this goal, he first sat with his wife Larisha, and then together they met with their two children to explain to them that they would be cutting back on a few things—including their yearly family vacation. He admits that the children weren’t completely happy with the idea, but they promised that once they paid off their home, they would take a long trip to Europe. In just a few more months, this will become a reality.

Living without a credit card is foreign to most people, says Anthony. He said some would tell you that it’s virtually impossible to reserve a hotel or car rental without a credit card. That’s just not true. You can reserve both in most cases with a debit card or even a cash deposit. Others argue that you need a credit card to keep a good credit score. Dave Ramsey says, “People who need a credit score are people who plan to take on more debt. The goal here is to become completely debt-free, and debt-free people don’t need a credit score. Why? Because they aren’t taking on more debt!”

Anthony and his wife Larisha made a decision years ago to get rid of their credit cards and make adjustments to their spending habits to include paying everything in cash. If you’re not ready to make the necessary adjustments, once you get the urge to use your plastic again, you'll simply call your bank and ask for a replacement card, or apply for another card, says Anthony. It boils down to how badly you want to reach your financial goals. In most cases, it starts with deciding whether to take control of your credit cards. If we did, then you can too, says Anthony.