I recently came across the term "Plasectomy," and immediately thought my friend who used the term was going to have to undergo some sort of surgery for a medical condition.
I quickly learned he was referring to something entirely different.
Radio and TV talk show host Dave Ramsey offers financial advice and financial counseling on his shows, and he encourages Americans to cut up, blow up, pulverize, or in some way destroy their credit cards in an effort to work toward debt-free living. This act is referred to as a "Plasectomy."
Ramsey's viewers send in a video of their Plasectomy, and if it's good, he'll air it on his show and send the person who created the video a prize.
Here's a video that won on the Dave Ramsey show last summer.
The concept of living without credit cards is not new, but it has gained momentum in recent years as credit card companies have raised rates. I like the idea of folks getting out from under a mountain of debt, but I do believe that credit cards can serve a purpose. A credit card can act like a low-cost loan for individuals while they are building a business, going to school, or have fallen on hard times and need a bridge to get through. A credit card might help to make things easier when traveling. There are a number of reasons why an individual or small business might benefit from a credit card - if the rate and terms are reasonable.
If you're a credit union marketeer, are you doing enough to educate your members about life post-plasectomy ... possibly with a low-cost card from your credit union?