Ten years ago I made a life changing decision and cut up my credit card, determined never again to use one. At the time this was a brilliant move as it means that the only debt I have is my overdraft and our mortgage.
However, in the past six months we have been burgled, there have been some unexpected costs and more recently we have needed to have our house professionally cleaned due to a negligent holiday cat sitter. I simply haven’t been able to personally find the funds to pay for these things. Its been dire and I’ve never felt quite so absolutely hopeless. I haven’t been able to sort things out properly for my family. In fact its been so bad that it has pushed me back to a state of depression and anxiety which had left me for the past year.
Things would have been very different if we had a credit card, you see, when we were burgled rather than waiting four and a half months for the insurance payout we would have been able to replace things immediately. This week, it would have enabled me to pay immediately for a cleaner to help me sort out the cat diarrhea which is spread all over my house. Instead, i’ve had to spend four and a half days solidly cleaning from 6 in the morning till 8 at night. Its still not clean and i’m finally getting somewhere with the Public Liability Insurance claim which means if I’m lucky I might get the carpets cleaned next week so the house doesn’t stink and isn’t a health risk.
Of course the other benefit of a credit card is that you have insurance cover for things which you purchase. This is very useful indeed and something I have missed as I’ve had to be exceptionally careful about purchases i’ve made.
Finally I’ve heard that a lack of credit card may affect my overall credit rating and since we are keen to try to move its another reason for me to go ahead and sign up.
One of my next tasks is to find the best credit card out there for us and sign up to it. It seems quite obvious to start with some of the high street banks like TSB who currently have a credit card offer, HSBC and Barclays. I’m also going to have a look online and perhaps seek advice on Money Saving Expert.
Once I have my credit card I will be very careful about managing it because I don’t want to incur any costs or find myself in debt. I have one simple rule:
Pay off the balance at the end of the month