How to Break Up With Your Credit Cards For Good

It is extremely difficult to make consistent progress on paying off credit card debt if you are still using your credit cards. Clients often wonder why their balances aren’t decreasing when they are paying more than the minimums on their cards. Unsurprisingly, when we look at their statements, we find that they are still charging new expenses on their cards. The expenses often feel small—a $15 Uber ride, a $20 Amazon purchase, that $15 Netflix subscription—but they add up quickly if you aren’t paying close attention to them and they can significantly slow your debt payoff progress.

Debt is emotional and there are many mindset shifts involved in changing your relationship with money as you pay off debt. That is going to take time, effort, and a whole lot of self-compassion. In the meantime, there are concrete, one-time steps you can take to change your environment and make it much less likely that you will self sabotage.  

Create Distance Between You & Your Cards

Why rely on willpower when you can create an environment in which you don’t need it? Having your credit cards with you is what enables you to use them when you are out and about, so leaving them at home is an effective solution. Of course, you also have opportunities to spend at home (thank you, online shopping), so giving your cards to a trusted friend or family member might be more effective. If you really want to go hardcore, there is always the simple but effective strategy of cutting up your cards.

Delete Card Data from Websites & Apps

These days, making your physical cards inaccessible is not enough to ensure you won’t use them at all. Make a list of all of the places you have your card information stored on websites or apps. They probably include at least some of the following:

• Amazon

• Target

• Walmart

• Food delivery apps

• Rideshare apps

• Retail websites

• Chewy and Rover

• Paypal

• Venmo

• Apple

Delete your stored credit card information from all of them and connect them to your debit card instead.

Remove All Subscriptions & Recurring Expenses

You also need to move all monthly subscriptions and other recurring expenses over from your credit cards to your debit card. To best identify your recurring subscriptions, review at least three months of statements from each of your credit cards. These might include the following:

• Netflix

• Hulu

• Disney+

• Gym memberships

Don’t forget about non-monthly recurring expenses. These could include:

• Annual memberships

• Car insurance

Digital tools like Quicken Simplifi or Rocket Money can help identify and cancel subscriptions for you. Continue to review your statements monthly going forward to identify any straggler expenses you missed the first time around. 

Final Thoughts

Paying off debt does not have to be a continuous struggle of willpower. Instead, find ways to change your spending environment to make it less convenient to use your credit cards.