I’m Only Going to Live on Cash and I Don’t Care About My Credit Score. – Lee

“Dear Steve,

If I had the money to settle ,then why would I not just pay the debt? Seems to me it would have a two fold effect 1 would not have to deal with those damn phone calls. 2 would not need to worry about credit score. I don’t worry about anyway, cause I do not plan on buying anything in the future using nothing but CASH.


Dear Lee,

The decision to settle your debt or continue to pay it can be a complex equation that takes into account a number of factors. For a look at the reality of debt settlement see Debt Settlement Pros and Cons. My No BS Guide to Settling Your Debt.

But if you wanted to avoid the phone calls and didn’t care about any impact to your credit score then filing bankruptcy is a possibility as well for unmanageable debt.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Don’t Care About My Credit Score

Your statement that you don’t care about your credit score and will use nothing but cash sounds a lot like the illogical mantra of Dave Ramsey. I understand why he uses that schtick but the logic of it is just fundamentally flawed.

Like it or not we live in a world where your good credit score is important and is used in beneficial ways, like lowering your cost of insurance or getting you access to the least expensive credit if you need to get a mortgage or buy a car without the cash saved. You may plan to buy those items for cash in the future and save for it but life doesn’t not always work on an orderly plan. Having a good credit score when you might need it is just smart.

People often react to the pain of debt by pulling back from credit. But that’s the wrong reaction. It’s like throwing away your kitchen knives because you accidentally cut yourself.

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Debt is a scrape, not a mortal wound.
Debt is a scrape, not a mortal wound.

Having good credit or access to credit is not the problem. The debt is the problem. It is possible to have credit without running up balances. Most American’s do.

When people say they will live on cash only, they often consider their debit card to be an instrument of cash. But a debit card is a less safe financial tool to use than a credit card. If anything, a credit card is the most preferred transactional tool to use. Just don’t carry a balance.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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