by Ann Hinds

Created on: October 18, 2009   Last Updated: November 24, 2009

Our decision to live with zero credit cards was made for us when we were downsized and our income vanished. We realized that in order to survive, credit cards and credit card debt had to go. Using our severance pay, we paid it all off. At first, it was a stretch to determine how to survive without credit but today, we have freedom.

Living without credit cards required a change in our way of thinking. Things that we want are less important because we have discovered that we have what we need. Many people do not realize that they already have everything they need. Having credit cards blurs that line. I wanted a new set of matching dishes. I did not realize that it was just a want until it was not an option to buy another set. While that may seem simple, we tend to go through our lives buying things that catch our attention without realizing that we don't need them. A big screen TV would be nice but we already have four smaller sets.

Living without any credit, not just credit cards, is sometimes a challenge. When things break, we deliberate our options. Fix is not always the best option but replace is more expensive. We have the car fixed, we replace toasters. Sometimes, what is broken is a want and not a need and we just let it go.

We used to watch commercials and feel bad because we could not afford to buy what we were seeing. Now, we are better consumers. Because we can't buy what we want when we feel like it, we have discovered that most of it is instant gratification and we don't need it. Impulse buying is off the table. However, by watching for bargains and sales, our holiday shopping is done. We saved the money for the big-ticket item. The child will be pleased. Budgeting for trips and other activities is now second nature.

We work with a list when we grocery shop. We plan meals and buy in bulk. We still eat out but not as often. We do spontaneous trips if there is cash left after paying the bills.

We pull cash for the week. We don't pay ATM or the charges at the bank. When the cash is gone, we stop. There are times when we have run out of cash but because we buy in bulk, food is never an issue. There is money set aside for gasoline. We budgeted for a week long vacation and came home with cash that we did not spend.

Many might consider us poor. We live on very little but we are not suffering. Paying cash for everything allows more choices. We also live without worrying about payments. The programs that offer information on how to escape credit card debt no longer hold any interest. We changed our mindset. I can't imagine that we would ever go back to living beyond our means. We are free.

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