Monday, March 12, 2012

Your Credit Report

Americans are using their credit cards to buy everything from sodas from machines to hamburgers through the drive-thru. They are often purchasing the basics, such as food and utilities with their credit cards.
And I'm not talking about those who are going through major life changes that require an emergency plan, such as a death in the family or other one-time events. I'm talking about the people who make "I don't have the money right now, so I'll just charge it and pay later," their mantra.
I understand tough times. But you have to realize that by using your credit card to buy food and pay bills will actually create more bills for you, not less. You are actually hurting yourself more.
Emergency repairs and medical bills are often necessary. But you should never buy groceries or pay your children's tuition with a credit card.
When it comes to food, there are ways to find it. You can simply eat what is in your pantry until you run out. You may not feel like another can of peas tonight, but honey, it's free. You already have it.
And if you can't make ends meet, you don't need to be paying for your child's tuition with a credit card. There are grants, student loans and jobs that the child can find out there. A credit card to fund college is not a good idea at all. You shouldn't but yourself in that kind of debt for your child's education. And he or she shouldn't either.
Using credit cards as something to fall back on when you don't have anything else isn't a good idea. You become dependent on them. You learn that they are there just in case, and this is a good time...
I know that there are times when you have nothing else you can do. That is why an emergency fund is so very important. My husband lost his job recently and we went two months without a paycheck. We didn't have to put one thing on a credit card because we were prepared.
You have to learn that credit cards are really dangerous ground. They encourage you to spend, spend, spend in the hopes that you can't pay on time. Then they raise your interest rate and charge you late fees.
Get out of credit card debt. It will cost you too much.

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