Credit Creep is what happens when you charge more than you can actually afford. We hope you will browse through this site before you apply for credit and learn how to use it wisely. Don't get stung by the Credit Creep! If you plan to buy a new or used car check out our car buying tips first.
Credit can be a useful tool or the road to destruction, it all depends on how you use it. Credit cards should be part of your personal financial planning. If you only use credit to buy things you can't really afford you will soon wind up in the Great American Debt Trap.
Many people get stuck on the credit card treadmill for years. They charge too much at one time and are constantly making credit card payments. There is never any extra money so they keep charging new things. What could have been extra money is now eaten up by finance charges. I have read that 28% of Americans are living paycheck to paycheck. I have also read figures that say 70% of Americans are living paycheck to paycheck. Whatever the correct figure is, it is too high.
Learning to save, invest and grow your own money is more fun than paying debt month after month. For as little as $25.00 a month you can start investing in mutual funds with an automatic investment plan. If you can afford to pay $25.00 a month in finance charges you can certainly afford to invest $25.00 a month in your own future. It's time to feed your cash cow. Booyah Skidaddy!
When a disaster like Hurricane Katrina hits we see how easy it is to lose everything. The only thing that was safe was the money in the bank. What would happen if you lost your job or became disabled tomorrow? Do you have enough money saved to make your mortgage or rent payment for a few months or will you soon wind up as one of the new homeless? This has happened to people with very large incomes because all the money is spent before they ever receive it.
I know a women who lives on $600.00 a month disability and she manages to save $25.00 a month. If she can save money, anyone can save some money. All you need to do is work out a budget and pay down your existing debt if you have any.
Don't let the credit card companies get fat eating all your hard earned cash. If you have good credit you should actually be able to make a profit off the credit card companies. There are a variety of rewards credit cards available. If you pay your credit card bill in full every month you should be using a rewards card. With the price of gas these days going nowhere but up everyone should have some kind of gas rewards card.
If you plan to carry a balance the best credit card for you may be a 0% Intro APR card. Many 0% Intro offers are available that allow you to transfer your balance from other cards. There is no reason why anyone with good credit should be paying finance charges.
If you listen to Dave Ramsey on the radio he will convince you that you should cut up your credit cards. Dave has some great ideas but I hope that most of you have enough self control to know when to use and not use credit. I think everyone should have at least one credit card for emergencies.
