When you develop good habit around money, you’re allowing yourself to have a long-term plan.
Is credit card the reason for this financial trap an inside?
Is the credit industry unfair to sign-up a credit card for your college child?
Is the credit card industry, at the root of this debt riding society will are living in?
All this are questions many are plundering upon. But the answers is No! Credit card are good and fair. Even without a trap in an indept poll of credit card debt.
When I heard some Good financial experts saying “cut off your credit card” I began to wonder how can somebody who couldn’t smartly use another peoples money, which if not use wisely will be paid with interest. How can you be smart with your own.
With all the credit rewards, credit card offered to our society. why should you cut off yours, cutting your credit card is not the cure of irresponsible credit habit. The problem still remains were it was.
Whether with credit card or not if you aren’t a credit winner you aren’t.
Using your credit card like if it were a debit card is the most important thing method of using a credit card. That means not spending more money than you have, and not carrying a balance monthly by just paying the minimum amount or only part of your balance. Which incurs interest fees the next month. Instead you should pay the balances off in full every month, which not only help you avoid interest but also means that you don’t end up overspending and wondering up in debt.
Why did people get trap with credit card debt.
The problem why people get trap with credit card debt, lies with the used and not the card. The consumer gets in all sorts of predicament because the usage of the card was nor properly observed. Here are reasons why a person could walk right into a debt trap with there credit card.
a. No actual money exchange hand.
As you make purchase using a credit card. You do not see actual money exchange hands, you need to keep tabs on your expenses to know if your income is enough to meet the payments once the bill arrives. After you have pay yourself, it’s important to know how much you can spend in your cards after you have credit your assets column.
b. They’re addicted to stuff.
People are paying bills on clothes they are no more wearing. It’s seems to many as “more stuff, more joy.” But that’s far from the truth. Stuff doesn’t make anyone happy for the long run. When you try to use shopping to calm your mood. Not long before you’ll realize you are far behind.
You aren’t what you own. And the little you own is enough. You don’t need to get the whole world to the confident. Why Every single person derive some joy from getting new things. Even those great advocates of “living below your means” you need now to focus on contributing to your asset column. So your asset can pay for the stuff.
But don’t be addicted to stuff, when you are not getting well with your emotion, look for help from experts or turn in to God’s word. Because the bible says “God word shall be health and medicine to all there flesh” not shopping on credit.
C. Enough credit card.
Most of us consumers started with one card. But not all of us stop at one. A lot of people are taking in a lot more and sometimes go away in over their head. Assigning a specific function to each credit card is a great idea but only if you can be financially matured to handle multiple credit cards. If not, it is better to stick to one card.
Some consumers assign a specific card for purposes like e.g groceries, gas and other items. This is a budgeting tool that allows them to see how each cost item is being used through the credit card. This is useful but requires a lot of restraint and deciplines. Restraint from using credit card just because you feel like it and discipline in using the card for specific purposes only.
D. They don’t make there budget a priority.
Been fiscal responsible, doesn’t only mean tracking your expenses after they’ve already happened. You have to get a budget and make it a priority to steak to it.
When you don’t shop according to budget you’ll roundup left behind especially when it is order peoples money through credit card. I know spending according to budget will take a lot of fight within. Because changing your lifestyle is not always comfortable at first. But the end results always tremendously worth the effort. So make it a priority to always steak to budget no matter what.
E. Major life change:
Major life changes effects the finances as well. Getting married, expecting a baby, moving houses, and other big ticket items purchases can have an effect on the personal finance of the consumer even up to their credit cards. But has said before a good monthly budget can do well to put you on track. It Is better to be able to anticipate and plan your budget around the new chapter your life will be taking.
How to break your bad money habits, and stop cutting your credit card.
As said earlier. Cutting credit card doesn’t solve the problem, because if you are not conscious of spending another person money that must be paid back, “even with interest” you can’t get your own secured.
And there has always been some set of bad habits, that make every fiscal irresponsible people what they are. And breaking those irresponsible habits has to be your first step before developing new healthy habits.
And there are three steps that can help you break off any wrong financial habits.
- Recognize the habits.
- Out what triggers the bad habits.
- And lastly find a better habits for your financial situation to replace the old bad one. Then practice, and practice again. Just keep doing it until it becomes automatic, without becoming discouraged by failure along the way.