Living a credit~free life is liberating but also challenging. In North America, most people live their every day life with at least one credit card in their wallet. For a long time, so did I. It’s been many years since I have given up the credit life. Has it been challenging? I would be lying if I said no. I have become frugal and disciplined in recent years.
There are many advantages and disadvantages of living and traveling with no credit.
One big advantage is you learn to spend only what you have and what you can afford. I do not live above my means. And there is not much impulse shopping!
Another advantage is learning to budget your money. I have become a master at budgeting, and also a little obsessed with Excel spreadsheets. I am very proud of my ability to budget as well as I do!
Many people are surprised that you can travel with no credit card. Europe and China are very willing to take cash as payments for hotels. Airline websites will take debit card payments. Bus and train tickets can be purchased this way too. It’s all about researching and finding the right websites.
Of course there are disadvantages. A huge disadvantage is not being able to get air mile rewards and bonus points. Many travellers I know have talked about the perks they receive from air lines ~ seat upgrades, even free flights. It’s not possible without a credit card, at least I have not discovered any yet.
Another disadvantage is in North America and traveling. Hotels want credit card information to reserve a room. Car rental companies won’t even consider renting a car without a credit card. While I understand the reasoning, I think it’s unfair to the people who travel on a cash~only basis.
Living and traveling in Europe and China has been quite simple as almost every place willingly takes cash for payment ~ including hotels. I am unaware if there are debt problems here in China as there are in North America, but it has been very nice living in a country that is so accepting of cash.