Switching off ccs ... for the most part?

[nadia105]

How?  We currently use one cc for Target (to get the 5% off) and one for everything else.  They are both paid off monthly, but I just stopped working (baby #4 due in 2 months) and we are going to have to watch our spending MUCH more carefully.  Last month was apparently a crazy spending month and it will take all the money we have (minus our $1200 EF) to pay off the cards this time :(.  With that as our starting point, how do we stop using the cc so much? 

We will have some tax money (not from too much being withheld, from the homebuyer credit and things) soon, but not too much since I didn't adjust Dh's withholdings to factor in my earnings.  The most we will have to work with is about $500 and I'm not sure how quickly that will be in our hands since we need to submit our taxes in writing (to include proof of the house we bought/sold and primary residency in our old house for 5+ years).

I don't have a complete problem with cc, but I know I spend more when I use one versus if it was coming right out of our bank account.  Some things, like gas, make sense to keep on there -- gas is never an impulse buy, but maybe groceries, eating out, and all that misc stuff should be kept track of some other way?

Any insights welcome!

[Drummer's Wife]

Why not just close both accounts?  Or even keep the regular credit card for emergency use only (keep it somewhere besides your wallet), and get a Target Debit card instead of the CC.  I have one, and I get a 10% off coupon every 100 spent (I think that's what it is, but I honestly try to avoid Target b/c I have no impulse control in that store!). 

Then just pay cash or use your bank debit card for everything.  As long as your fixed expenses are less than your income, it shouldn't be a struggle not using credit... especially since you weren't really financing anything as you paid off your cards every month.  If you think you can continue to do that after the baby is born, you could just keep things as is and discipline yourself not to overspend. But if you want to go CC-free, it's definitely possible.  We haven't had one for almost a decade, and get buy even doing things like making hotel reservations and buying plane tickets with our bank card.

As for gas, if you are looking to use a gas specific card that includes savings, some gas stations have debit cards (I got one from Shell recently) that offer rewards such as 10 cents off per gallon, and it's connected to your bank account, so no financing or chance of racking up a huge balance that has to be paid off.