Give Credit Where Credit Is Due

It seems that "Saving" has become a dreaded word these days. Since credit is so easily available from multiple sources it gives people a false sense of wealth so they splurge and buy what they want, when they want it. From an early age I was taught you can't always get what you want and I thank God my parents raised me that way. Too many people use credit like it's free money and they don't seem to feel the repercussions until it's too late.

Minimum Payments Are For Chumps

One of the worst things I've heard someone say is, "I have room on my credit card to buy it". They think they can afford the new purchase, but what I hear is that they are carrying a balance close to their limit and they love giving away free money each month. I bet if you asked the average person on the street, they couldn't tell you what the interest rate is on their credit card(s), yet they gladly fork over money month after month upwards of 19-29%. That's an insane amount of money, especially when they banks won't even give you a 1% return in a normal savings account. Let's say you carry a $3000 Balance on a credit card charging you 19% a year.

Credit Card Interest Paid:  .19 x 3000 = $570 a year

That's a nice romantic weekend away or a good chunk of a big screen TV that your giving away because you're "livin' the life" with money that isn't yours to begin with.

Learn How To Use Credit

I have a dirty secret to share with you: I don't know what my credit card interest rate is. More importantly, it doesn't matter what the rate is because I pay my balance off every month. I use my credit card the way it's supposed to be used, as a tool for purchasing and not a high interest rate loan. The first step towards a good credit card mentality is to realize that you can only spend what you make. If your bills add up to more then you bring home in a month then you are living beyond your means. If you need to use a credit card to make it through the month then you are living beyond your means. You better cut back on frivolous spending or you're going to regret it

Make a budget and stick with it. If you find yourself heading towards a spending spree think about the consequences of your actions. I like to imagine money being thrown into a furnace when I start spending foolishly with credit. It helps me realize that the money I spend on interest is just a wasted expense.


If credit is a real problem, it's probably a good idea to only use credit cards when you have to like booking airfare, concert tickets or online purchases. Using cash lets you physically see your money being spent so when the stack starts to shrink, you begin to think twice before making purchases.


Do you have control when it comes to credit?