Can We Really Live Without A Credit Card?

Well, we paid off all of our credit cards months ago. And we closed all accounts except one. Now the one we kept open is trying to charge us the annual fee.

I have no desire to ever use a credit card again, but I'm not sure I feel safe closing this last account. I know Dave Ramsey would advocate strongly to close the account. But something about having it does make me feel just a little more secure.

What do you think? Has anyone else closed all their credit card accounts?