In the build-up to Christmas, you’re starting to pale at the thought of how much it’s going to cost you. Of course, having a special festive season is all about being a little extravagant, but that doesn’t mean you should open up a credit card alongside your advent calendar.
So maybe you don’t have enough money in your bank account right now to have the expensive Christmas that you want. Unfortunately, living outside your means is something we’re all tempted to do, but ultimately it leaves us with serious heartache, when those bills start coming through.
1. Getting Out Of Debt
It’s highly unlikely that you’ll be able to remain debt-free with a credit card. Even the most proficient money-managers will experience problems that will prevent them from paying off their premiums.
The problem with credit cards is that it often feels like free money. You’re far more likely to make impulsive and expensive purchases. In fact, the interest you’ll pay on your credit cards is shocking.
All parents want to instil great monetary values into their children. If you don’t practice what you preach, you’re teaching your kids bad habits for the future. Making purchases you can’t afford with your credit card isn’t showing responsible fiscal behaviour, so before you bring out the plastic, think of the children!
3. Credit Companies Are Using You
They’re not giving you credit just because they like you.The more money you spend on your credit card, the more money they’re making. Credit card companies are profiteering off the kind of behaviour which gets people into serious debt; and therefore, exacerbating economic difficulties.
Through late payments and high-interest rates, they fleece you. In late fees alone, credit companies make over $11 billion a year.
Credit cards aren’t offering you what appears to be a great deal on your first credit card for no reason. They know that you’re unlikely to drop the habit, once you’ve begun. The temptation to buy things you couldn’t usually afford is too great.
It also promotes poor money management. With little limits on your spending, you may lose track of your expenditure and dish out more purchases than your salary covers.
If you fall prey to the credit card devil and find yourself lumped with unmanageable debt, use this great website to find out if an IVA can help you. Once you’re out of trouble, relish cutting up your cards.
5. You Don’t Need a Credit Card
A debit card works just as well as a credit card and forces you to save up for those large purchases that you want to make. Although you may think that opening up a credit card is a great idea and you’ll be good with your money so you don’t get into trouble, statistically, American households spend more than $412 billion in credit card charges every year. Do you want to be a part of that statistic?
Blog post by IVA Expert.