I'd like to cut up my CC...?

[amber913]

I have two credit cards--a regular one and a Toys R Us one (got the latter for the discount when we bought a swing set). We use them very little and only have them in the first place primarily for emergencies. For example, we're living on borrowed time with this prehistoric fridge of ours and one of our cars is being held together by its own dirt.

The interest rates have sky-rocketed, and my regular one likes to tack on stupid little fees whenever it feels like it, so I'd like to pay these buggers off, cancel them and cut them into confetti. BUT I worry about not having one for emergencies.

Our savings is not worthy of being called an emergency fund as we are draining it slowly b/c we're making very little money in this fabulous economy.

My parents could be considered an emergency fund, but you know how fun it is asking Mom and Dad for money.

What would you do? Do you live without CC?

[icy02]

I would find a cc that is interest free for 12-15 months and has no fees or interest on balance transfers. Then I would transfer all the money on your not so great current cc's to the new one. You will then have a great cc for emergency's and in the meantime you can still work on paying off the balance! This is how me and my DH surrive! Sometimes we get offers in the mail and sometimes I go online and search for one and then apply for it online. I know, for example, that my one cc we carry a balance on (left from son's adoption) is going to accur an interest rate in September. So we basiclly need to pay it off by then or transfer it. Bottom line - never pay fees or interest on cc's, its just takes a little time to find an interest free one and transfer over your balances.

[LilyGrace]

I'd pay minimums on the credit cards for a while and build up that emergency fund and a slush fund. Your cash is going to be worth more than your credit card if you get laid off work.

[chiromamma]

We recently cut up and canceled all of our cards and the pile was quite large. We did it because we had interest rates go from reasonable to 30%.
We had to cut our living expenses and we have no emergency fund right now. We are working on it though. I tell you, I sleep better without them. We will likely never use credit cards again. We use a debit card for car rentals and the rare online purchase.
As far as you fridge, go to craigslist. It's crazy what people get rid of.

[Drummer's Wife]

Originally Posted by amber913

What would you do? Do you live without CC?

personally? I would cut them up and never look back. We do live without credit cards. However, we didn't always... which is what got us into trouble. The good thing that came out of it was the mindset that we will likely never use credit cards again.

We do use debit cards to buy things online (actually, it's pretty much all we use when shopping at the store, too).