Don't spend money that you don't have3 of 8"I do use credit cards and I have four that I use sparingly -- two MasterCards, one Discover and one American Express. But I look at credit cards as loan cards, because that's exactly what they are."Even when I use the credit cards, I already have the cash to pay for the item or service. I use them to build my credit profile. Don't spend money that you don't have. Period. Don't count on expected future funds to cover what you are buying now. This is exactly what happens to many people who get themselves into trouble waiting on a lawsuit settlement, a refund from the IRS, etc. Simply don't spend money that you don't have."In the old days, you had no choice but to follow this rule. If you wanted to purchase an item/service, then you had to save for it until you had the full amount. The problem now is that there are too many irresponsible individuals with credit cards. These cards are not meant for just anyone to possess. Maybe the banks/credit companies should develop an examination that has to be passed before issuing their cards to consumers." -- Alonzo, Washington, D.C. Related Articles:Why debt management?5 ways to cut debt now2010 Frugal Living GuideSave money on groceriesRelated Links:Ways to dump debt in 2010Debt pay-down calculatorBuilding your emergency fund4 dumb financial moves advertisement
"I do use credit cards and I have four that I use sparingly -- two MasterCards, one Discover and one American Express. But I look at credit cards as loan cards, because that's exactly what they are.
"Even when I use the credit cards, I already have the cash to pay for the item or service. I use them to build my credit profile. Don't spend money that you don't have. Period. Don't count on expected future funds to cover what you are buying now. This is exactly what happens to many people who get themselves into trouble waiting on a lawsuit settlement, a refund from the IRS, etc. Simply don't spend money that you don't have.
"In the old days, you had no choice but to follow this rule. If you wanted to purchase an item/service, then you had to save for it until you had the full amount. The problem now is that there are too many irresponsible individuals with credit cards. These cards are not meant for just anyone to possess. Maybe the banks/credit companies should develop an examination that has to be passed before issuing their cards to consumers." -- Alonzo, Washington, D.C.
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