Your Question:

What’s your opinion on cutting up credit cards? Some personal finance experts push this idea but I’m not sure it’s right for me.

Have 5 seconds? Here’s my take on what you need to know:

My opinion is that it depends on the person.

If you don’t trust yourself with your credit card – that is, if you have a habit of racking up a balance bigger than what you can pay off each month – then yeah, cutting it up might be your best option.

However, there are other ways to help curb your spending impulse by creating physical space or barriers between you and the card. Try taking it out of your wallet and storing it somewhere inconvenient. Or creating a credit card condom to protect yourself from unsafe spending.

Bottom line: you need to be honest with yourself about your habits. Deep down, you know what’s right for you… and it may be “snip snip”.

Have 5 minutes? Here’s what else you should know:

Let’s see what some other personal finance experts have to say about using credit cards versus cash.

Cash keeps you honest about using money. When you have to pull that last $20 out of your wallet, and it’s the $20 that has to get you through the end of the week, you’ll be a lot more discriminating with what you buy.” – Farnoosh Torabi


“I have always held that credit cards are a tool. […] But credit cards themselves aren’t evil. In fact, I love my credit card for a whole bunch of reasons.” – Gail Vaz Oxlade


The truth about credit cards lies somewhere in the middle. As long as you manage them well, they’re worth having.”Ramit Sethi


“If you’re out of debt and you can manage credit without overspending, a credit card has more perks than pitfalls.” – Bridget Eastgaard


“Fast forward to today and I now use my credit cards to pay for absolutely everything. In fact, I would consider them one of the most important tools in my budgeting system.” – Cait Flanders


There is no positive side to credit card use. You will spend more if you use credit cards.” – Dave Ramsey

As with most money topics, there’s a range of opinions. Dave Ramsey takes a zero-tolerance approach, a tough-love message that many people need… but not everyone.

Before you leave…

The spending holiday season is here! The movie Elf has made its annual television debut and Black Friday sales begin in just two days (yes, in Canada too!). The weeks leading up to New Year’s Eve will be filled with shopping temptations and opportunities to rack up your credit card bill. Eek!

Want to avoid waking up on January 1st with a spending hangover???

You need a plan!

Give yourself the gift of financial peace of mind. Book your Clarity Call with me today and I’ll help you figure out how to enjoy your holiday shopping GUILT FREE!! 



Lisa Zamparo  is a  financial strategist and lifestyle optimist, as well as a Chartered Professional Accountant (CPA), business coach and personal finance expert in Toronto who helps people make intentional decisions with their money.

As a one-on- one coach, her personalized approach to financial planning helps her clients achieve their goals by aligning their spending with their priorities.

As an inspirational educator, Lisa leads workshops  that infuse mindfulness principles with financial concepts delivered in a fun and approachable style.

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