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3 years ago
Wed Jun 16, 2021 12:58 pm
BrutalBodyShots
Senior AdministratorGoodwill Saturation Technique Author
BrutalBodyShots has been gardening for over 2 years.
BrutalBodyShots has achieved the Garden Goal !!
BrutalBodyShots has achieved the Garden Goal !!
This is an old piece of advice that's been given for decades to individuals just starting out with a credit card. My parents said it to me. If you don't have the cash to buy something, don't put it on a CC. Expressed differently, could you immediately pay off your proposed CC purchase?
The vast majority of people that find themselves in credit card debt that they can't seem to overcome no doubt didn't follow this simple rule. I think it's important in this forum to teach healthy credit habits. This honestly is probably right at the top of the list.
I had an employee that worked for me that struggled with this for years. I suggested that they start treating their credit card more like a debit card. By that I mean they only make the purchase on the CC if they could make the purchase with their debit card. To further punctuate that point, after making the CC purchase once it posts they would immediately pay it off with their checking account. Basically this process results in one using their credit card like a debit card, just with 1 extra step (payment) included. The employee found that once they got into the habit of following this process they were much more financially aware and stopped running up their CC balances.
The vast majority of people that find themselves in credit card debt that they can't seem to overcome no doubt didn't follow this simple rule. I think it's important in this forum to teach healthy credit habits. This honestly is probably right at the top of the list.
I had an employee that worked for me that struggled with this for years. I suggested that they start treating their credit card more like a debit card. By that I mean they only make the purchase on the CC if they could make the purchase with their debit card. To further punctuate that point, after making the CC purchase once it posts they would immediately pay it off with their checking account. Basically this process results in one using their credit card like a debit card, just with 1 extra step (payment) included. The employee found that once they got into the habit of following this process they were much more financially aware and stopped running up their CC balances.
- Tagline Goodwill Saturation Technique Author
- Classic 8 Scorecard CLEAN/THICK/MATURE/NO-NEW-REVOLVER
- Mortgage Scorecard CLEAN/THICK/MATURE/NO-NEW-ACCOUNT
- AoOA 266 months
- AoORA 266 months
- Date of Last Inquiry and/or New Account Opening May 23rd, 2022
- Garden Goal 24
. I'm still learning every day.
There was a time I was exclusively using a debit card. That instilled in me the practice that you mentioned. If it was a nominal credit charge where I could take advantage of the grace period and my balances were manageable, then it wasn't a problem.
Nowadays, if I had to incur a 4 or 5 digit expense, then I would have to think long, hard, and how I will be able to pay the balance even before I used the card if I did not have the funds in an account. Those interest fees will get you into a bind, especially if they are +20% APR.
