Buzz
We’re now halfway through the month, so it’s a good time to take stock of how we’re doing with the no credit card challenge.
When I first introduced this challenge, many of you reacted with something like, “Why would I give up my points?”
And honestly, I wasn’t concerned about that. If you want to go after your points, go ahead. I had no problem with skipping my rewards for a month.
But I also heard some of you saying, “But credit cards offer so many more protections than debit cards! This isn’t safe!” And that’s true: if you fall victim to fraud or theft, it's generally easier to recover losses from credit cards than from debit accounts.
If you’re like me and prefer avoiding debt or anything that could lead to it, not charging purchases for a month sounded like a brilliant idea! However, keeping those credit card protections in mind, I’ve found my no-credit experiment has mostly been about relying more on cash.
Now, let’s review the results of my experiment at the halfway point:
On the first day, I slipped. I intentionally left my regular credit card at home, but without thinking, I handed it over to pay for doughnuts in the morning and a bar tab in the evening. What a Saturday! I realized my mistake right after each purchase and vowed to do better next time.
A few days later, I ended up charging a plane ticket. No guilt there.
I chose to make a larger online purchase using PayPal instead of my credit card, as the retailer provided the option.
One last instance that stood out to me: I pulled into a gas station to refuel, and the sight of the payment pad at the pump made me rethink my decision. Rather than swiping any card, I went inside and handed the cashier $10 to fill up a few gallons. I’d rather keep my personal information elsewhere, thank you.
Aside from that, the main impact of the challenge is more internal. As the balance in my checking account decreases, I start to feel uneasy, no matter what my balances are elsewhere. This, I now realize, is a major factor behind my usual tendency to default to credit for almost everything.
At the moment, I’ve reached Silver Status, and that’s where I plan to remain for the rest of the month:
Silver Status: You opt to pay with PayPal or Venmo (linked to your debit card, of course) to avoid using your credit card for online purchases. You use your credit card up to three times throughout the month.
Here’s an update from Mytour’s Managing Editor, Virginia K. Smith, on her no credit challenge:
I was doing great during the first week and a half of this challenge, feeling pretty smug about it. But now, I’m getting a reality check when it comes to my food budget. I don’t usually splurge on expensive meals, and my grocery budget is fairly reasonable, but those smaller, on-the-go meals and impulse buys ($7 here, $12 there) really add up fast.
Last weekend, I totally lost track and used my credit card several times. To be honest, it was the anniversary of a close friend’s passing, and we were gathering for drinks and such. It just didn’t feel like the right moment to be obsessing over every penny, and I’m 100% okay with that choice. Still, I ended up spending more than I had on hand and found myself using my card for other random things (like trips to the deli) later on.
I’ve reined it back in, but I have to admit, I feel pretty uneasy using my debit card as much as I have been! It feels a lot less secure, and it is. For instance, I put my card down for a tab this weekend, only to realize on Monday that I had been given back a Chase Sapphire Reserve card that belonged to a CHRISTINE Smith! I tried to track her down, but Smiths are nearly impossible to find (this is why I use my middle initial!), so I had to call Chase, and they canceled both of our cards and are sending me a new one. Karmic retribution for using my credit card during the “no credit card challenge”! But honestly, this whole situation would’ve been much worse had it involved my debit card instead of a credit one.
We’ll see how the rest of the month plays out, but I think the big lesson for me will likely be that I need to set a clear limit for my credit card balance every month and stick to it.
If you're taking on the challenge with us, let us know in the comments: How's it going for you?
