A Life of Debt

September 30, 2012 by  
Filed under Debt & Credit Free

For about a decade now, the growth in numbers of people relying on credit to make their larger purchases has been steadily on the rise. We have unquestionably developed into a more impatient society, and this has meant that where we see an opportunity to obtain more costly consumer items we are quite unlikely to reject the opportunity. The vast majority of people are taking out loans or putting expensive purchases on a credit card to spread the cost out over a period of time. Owing this to the ease and availability of credit in the early part of this century, but is this a good thing? Certainly, none of us are complaining when we get a new home, a car or that big screen TV, but what about when those payments begin?

 There are those individuals who will pay off their credit card balance in full when their statement for the month is received, and in doing so will help build an exceptional credit rating. This will also alleviate the possibilities of an interest increase and accrual of late payment fees. This will also help keep the credit line available for emergencies or a purchase which need to be made at short notice. It is completely practical to use credit this way; however be cautious not to be tempted to make only the monthly minimum monthly payment toward balance of your card. If you are using credit to pay for continuing, necessary costs, then you are likely to run into problems somewhere along the way. Work out a budget and live by it – it may be tight, but you’ll never have to fear when the telephone rings.