As you may or may not know, I’m a recovering shopaholic. Therefore, being credit smart is a serious step in my recovery. It’s very easy to misuse credit and get into debt. I feel like credit is like gaining weight. It’s very easy to gain weight but it’s very hard to lose it. If you’re not credit smart then it’s easy to get into debt but hell to get out.
Here are some tips that could help you.
Always pay your balance in full
I think that this is the #1 mistake anyone can make when it comes to credit. I’ve done it and if you’re reading this you probably have too. Not paying your balance in full gives some credit card companies the right to charge you interest from the day that you purchased the items.
Never buy something you can’t afford
If you know that you don’t have the money in your pocket and the funds aren’t coming within a month; Don’t buy it. I’ve really wanted items in the past and bought them just because I had room on my credit card to purchase it A.K.A. shoes. I got my credit card bill and I didn’t know how I was going to pay for it. Therefore, I had no choice but the pay the 18% interest that the credit card company was charging me.
Look at your money in time
This is something new that I just stated doing. Looking at my money as time. If the item you want cost $300 and you make $20 per hour. How many hours would you have to work to buy the item? Doesn’t this bring you back to math class. LOL. It would take you 15 hours of work to buy the item or almost 2 8hours shifts. Is the item worth that much?
Don’t try to keep up
I know we all love nice things but when you’re just copying your friends or you want to seem better than your piers by using credit, your in for a shit load of mess. That’s a big no no! You don’t know how other people spend their money or what their finances are like. Don’t try to keep up with them, you’re going to end up in a financial hole. When that person asks you to hang out either say NO or suggest doing something on the cheap. What I’m asking you to do is not always easy but you must be your own person.
You should start understanding your money better. Once you know how much is coming in and out then you’ll know how much you can spend on credit. Just because the bank gave you $5000 doesn’t mean you have $5000 to spend. It just means that that’s the quantity that they believe that you can afford to pay back.
Being credit smart is not brain surgery and anyone can do it. If you manage your money the Wright way. Saw what I did there! LOL
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