People often consider credit as an entity completely separate from their own pool of money. In fact, a study was conducted that gave two groups of people credit and the other cash. The group with credit was much more likely to spend more than twice as much on the same pair of football tickets than the cash group. The point is that people, on a psychological level, will spend more on credit than they will with cash. The good news is that you can easily take advantage of this fact.
Why Hiding Your Credit Cards Helps
Simply put, you limit the opportunities you have to pull out your card on a whim. People think they can buy really great and expensive items with credit and justify that they are on sale. You can easily just pay that amount when you get paid or split the tab over your next few paychecks.
This has become a harmful way of thinking for most people suffering from crippling debt. The only things you really need are the bare essentials (food, shelter, bills, etc.) If you keep falling deeper and deeper into debt because you fall prey to this rational, then there is only one simple solution.
It’s time to start hiding your credit cards. This gives you a way to start associating the amount you’re spending each month with your personal pool of money, allowing you to consider the consequences of buying something on a whim. Spending the bank’s money is all well and good but you’ll think twice about that new TV if you have to watch your own checking account go down.
Where should you store your credit cards? While just keeping them at home is a good way to avoid everyday spending, you might want to consider storing it in a safety deposit box or at a trusted family member’s home if you have a bad shopping problem. If you can’t gain access to your card within a day you have time to rethink your decisions, which is always a good thing.
Hiding your credit cards is a great way to effectively stop spur of the moment shopping so you can eventually pay off debt and build your savings. You should also note that it’s almost never a good idea to cancel a credit card because in most cases it will harm your credit score.