How to Reduce Your Reliance on Credit Cards and Debt

A study by the National Foundation for Credit Counseling suggests that one in five people need a credit card to maintain their lifestyle. This shows that for a large number of people, credit cards are a great source of financial assistance.

However, the fact that people in such large numbers cannot make ends meet without credit spending is alarming. While credit card usage is not unhealthy for your financial health as long as you have a sound back-up to pay your bills, it doesn’t take long to turn to unnecessary spending and run into massive fiscal deficits.

Therefore, it is essential that you reduce your reliance on credit cards and loans so that you never fall in any debt traps. We list some of the ways here that can help you achieve that.

Keep Track of Your Debt

Several judgment errors can take place if you are not aware of your current debt situation. This can especially happen if you own multiple credit cards. You must be mindful of exactly how much your debt amounts to and what interest and other charges you are to pay on it.

Once you have a consolidated figure, you will have a complete picture of how much you can afford and back up with your sources of income. You can negotiate with your lenders for the excess part. If you have a good credit history, lenders are usually willing to adjust your repayment schedule.

Minimize Your Expenses

An unhealthy financial condition occurs only when your expenses are more than your income. The need to use a credit card will only arise for excess expenses. Therefore, to reduce your reliance on credit cards, you must change your lifestyle.

Find out what your most significant expenses are and how many of them you are paying with your credit card. Cut down on ones that are unnecessary and match your spending with your real income. Preparing a household budget can give you a lot of control over your expenses.

Have Multiple Streams of Income

One way to reduce your reliance on credits cards is to have more than one stream of income. This could be a part-time job, a freelancing project, or a side business. With just a bit more effort, you can earn some extra cash which you can use as an alternative to your credit card support.

Additional financial support can also help you pay off your debt, or to build enough backup to improve your financial health even if you are using a credit card. Part-time jobs can be the easiest and quickest options for an alternate source of income. They are mostly for a short period and don’t require a long-term commitment.


It is all about managing your resources better, Tips above as well as understanding your financial position, and spending only what your real income allows. If you do just that, then from the mortgage for houses in Connecticut to the payment of your health insurance plan, you can manage most with even a salary.