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One of the downsides of being in debt is that it tends to trash your credit. Paying bills late, charging your credit cards to the max...can make your credit scores plunge.
But is credit really a necessity of life?
Remember, credit cards haven't always existed. Before the 1960s hardly anyone had them and it wasn't until the 1970s that their use became widespread.
If you don't have credit cards or the ability to borrow, what does that mean? It means that you can only buy things that you can truly afford.
Yes, we all WANT a bigger, newer TV, a new wardrobe every season, a visit to the best salon in town, a vacation by the sea every summer and a ski trip every winter, $200 workout shows...but we don't need them. And if we can't afford to pay for them, should we borrow money and go into debt to do so?
If you want to buy plane tickets and rent a car...get a debit card. And make sure that you have the money in your account before you try to purchase anything.
Get used to shopping consignment stores, thrift stores, and discount shops like Costco or Sam's Club.
If you need money and don't have enough in your bank account...work longer hours, get a second job, or sell off some of your possessions. There is no such thing as free money - any money that you borrow now, you must repay later or your credit will again be ruined.
And if you pay for something yourself, all at once, you are paying the real price for that item. If you pay for something on credit, you may pay two or three times the price of that object over the lifetime of the loan.
So if you've trashed your credit, don't be so quick to try to qualify for new credit cards again. Life without credit can be better than you think. It's certainly better for your finances.
One of the downsides of being in debt is that it tends to trash your credit. Paying bills late, charging your credit cards to the max...can make your credit scores plunge.
But is credit really a necessity of life?
Remember, credit cards haven't always existed. Before the 1960s hardly anyone had them and it wasn't until the 1970s that their use became widespread.
If you don't have credit cards or the ability to borrow, what does that mean? It means that you can only buy things that you can truly afford.
Yes, we all WANT a bigger, newer TV, a new wardrobe every season, a visit to the best salon in town, a vacation by the sea every summer and a ski trip every winter, $200 workout shows...but we don't need them. And if we can't afford to pay for them, should we borrow money and go into debt to do so?
If you want to buy plane tickets and rent a car...get a debit card. And make sure that you have the money in your account before you try to purchase anything.
Get used to shopping consignment stores, thrift stores, and discount shops like Costco or Sam's Club.
If you need money and don't have enough in your bank account...work longer hours, get a second job, or sell off some of your possessions. There is no such thing as free money - any money that you borrow now, you must repay later or your credit will again be ruined.
And if you pay for something yourself, all at once, you are paying the real price for that item. If you pay for something on credit, you may pay two or three times the price of that object over the lifetime of the loan.
So if you've trashed your credit, don't be so quick to try to qualify for new credit cards again. Life without credit can be better than you think. It's certainly better for your finances.
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