Is credit really the best thing? I think we have all been in the position that the credit card offers are coming in everyday. No interest, balance transfers, etc. etc. How many buy into this debt trap? I did and now I spend so many hours trying to get out of this mess. I can also say that I am one of the unfortunate who got in so deep that the precious and so terribly needed credit score is in bad shape. Now I am asking myself how I could I let this happen? The human desire is the answer. I wanted this car and this house, I wanted to impress everyone else. I had to have the best clothes and eat at the finest restaurants.
My number one mistake and the mistake of so many others, I was living outside of my own means. For those not familiar with the term, It means simply that your spending exceeds your income. So many in the U.S. today have fell into this never-ending cycle. The best piece of advice I can offer is that if your borrowing money to cover money you have already spent you are digging a hole that will eventually lead to total bankruptcy.
For example, you have so much credit card debt that you cannot make your electric bill, so you take a small loan to make the ends meet that month. What have you accomplished, nothing more than a few nights of rest. Next thing you know your in the same mess next month only now you have another bill to pay. Why? Because you now have to pay the loan you took the previous month. An endless cycle of self destruction.
What about the credit card that offers to transfer the balance of the others. Yes, maybe that will work, but only if you close the cards that you transferred and destroy the card. Otherwise, you now have the big consolidation card payment and your still racking up the charges onto the old cards. Stop the madness people. In reality, your expenditures each month should not exceed sixty percent of your income each month.
If you need to evaluate and make the needed changes in order to have a bright financial future, set a goal for yourself. Decide how much money you want to have left over each month and make a plan to accomplish that goal. Self control is the key to success financially. Only you can secure your future. That lottery ticket in your wallet is nothing more than a gamble. live your life realistically. Credit is ruining society. Don’t buy into the hype. The only reasonable purchase is an investment. Invest into your future.