Do you know what the easiest way to stay in credit card debt is? Keep using the credit card.
The all-cash diet is really more of an approach to spending money than a budget tactic. Instead of using your debit or credit card for day to day purchases (excluding things like bills), you only use cash.
The theory is that if you’re limiting your spending to just what you have in your wallet, you won’t overspend. It’s great for people that don’t have the greatest self-control when it comes to spending. Or people who have the habit of making impulse purchases.
Credit is a relatively new concept introduced less than a hundred years ago. Before then, your grandparents and great-grandparents had to earn every penny before they wanted to buy something. If they didn’t have the money, they simply couldn’t afford it.
You take out a certain amount of money based on your budget, and that’s all you get to spend. Using cash is a great way to ensure you’re not relying on credit to buy things, especially essentials that you should be budgeting for in the first place. And of course, it's really important to leave your credit card at home, so you won’t be tempted. The all-cash diet can be extremely effective at least to eliminate all your debts.