Friday, July 3, 2015

Avoid our Pitfalls of Credit Cards

Credit Cards are the worst type of debt. I fooled myself for years into thinking having "revolving debt" was the way to go. I got into the habit of convince back in college and have continued those bad habits.
I realized in college that if I used my card for my every purchases instead of my debit card. I didn't have to pay attention to what was in the account at that moment. I didn't have to worry if my paycheck was deposited today (and was available) or if it will show up tomorrow. So I used my card to make the everyday purchases and then told myself I would pay it all each month.  Sometimes it worked out just like that. But then there were the months I was unemployed or didn't have as much income as I normally did for my spending. Or I straight up over spent. As life got even crazier and I paid even less attention those numbers added up even more. There are a lot of people who get into lots of debt because they impulsed bought, often big ticket items. We aren't bad at that. We have had our moments, but that is not the bulk of our debt. And to compound it all is the compounding interest. Once you have that carry over balance getting rid of that balance again is almost impossible only making payments.

So here is a warning to you.

All debt is bad debt. Revolving debt is still debt and the easiest pitfall get trapped into. Sure I thought it was making my life convenient (and it was convenient) but I was also ignoring the responsibilities to my finances. I was addicted to my credit cards. Not exactly to the overspending but to the easy non-accountable way I didn't have to worry about every penny. But that isn't good for our pocketbook nor is it good for the soul. God's plan is for us to be accountable.

Now we are paying the price of our non-accountable actions. We are now being held responsible for all the actions we have taken.

Learn before. Don't use credit cards. If you're in the same boat as I am. Cut up those cards, go cash, and force yourself to learn to be accountable. It is possible. We can do it.

No debt is good debt.

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