Don’t buy shit with money you don’t have. Eliminate credit card debt.

Credit and Credit Cards are one of the most evil things on this planet. You are buying things with money you don’t have, on the promise that you will pay it back. Everything comes with a financing package – a house, car, computer, tv you name it – don’t be tempted by it.

People are buying things using credit cards, paying off the minimum monthly and pushing towards next month where they buy even more. This mentality has gone overboard lately. Your credit line is not your savings. Having a bigger credit line just means that you are digging a bigger hole for yourself. In these current times there are a lot of temptations Big Screen TVs, Flashy Phones, Fancy card and this has been reflected in the numbers. Here are some statistics:

  • U.S households will receive approximately 5.3 billion offers for new credit cards in 2007.
  • In October 2007, credit card debt that was at least 30 days late totaled $17.6 billion
  • The current total credit card debt is about 800 Billion

That’s how bad the situation is.

If you have the entire $$ for that HDTV in the bank, then buy it, otherwise don’t. Don’t buy shit with money that you don’t have. However slowly Americans are learning: “We don’t use our credit cards anymore,” said Lisa Merhaut, a professional at a telecommunications company who lives in Leesburg, Va., and whose family last year ran up credit card debt it could not handle.

Today, Ms. Merhaut, 44, manages her money the way her father did. Despite a household income reaching six figures, she uses cash for every purchase. “What we have is what we have,” Ms. Merhaut said. “We have to rely on the money that we’re bringing in.”

What Lisa Merhaut does is absolutely correct, spend money only after it comes in and only if you have enough in the bank to cover your expenses. People don’t like handling wads of cash, but it is much safer than getting in debt. If you don’t like handling cash get a debit card (otherwise known as a check card) it is just like using cash, the money is just taken out of your bank account. College students, this is perfect for you.

For more sob stories read this article from the New York Times.

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