Paying off all our credit cards and cancelling them and living off cheque / savings accounts rather than credit.
We did this about 5 years ago before COVID uncertainty and the current cost of living crisis and I’m just so relieved we don’t have to worry about paying anything off.
If you’re good about treating it like cash, credit cards aren’t a bad thing. The cashback/rewards are nice as they are not taxable. (At least in the US)
That said, for some the temptation of credit is too much.
The gamification of credit card points can be a problem, too (overspending on stuff you don’t really need or want to get those rewards). I use a credit card for this, too, but it can be murky waters if you don’t have really good planning and impulse control (which I will admit I don’t always have myself).
The cashback ones are better than the points collectors. Though they both have some positives.
With the cash back ones you just get money back for spending money that you would have already spent. If you spend enough to get more cash back than the fees for the year then you are ahead. With the points ones if you use them up once a year to get something that you would then not have to spend money on including the yearly fees then you are also ahead.
I get enough enough points to get a gift card for my favorite steakhouse. So we don’t pay each year for our two yearly visits to the steakhouse because of points.
