Do you use credit like it is income?
You might and not even realize it. When you purchase clothing, a TV, furniture or even a car, do you pay cash or use credit? If you say to yourself, “I can afford to make the monthly payment”, then you are using credit like it’s income. You should ask yourself, “Can I afford to pay cash for this right now?” If you don’t have enough cash to pay right then, the answer is NO, I cannot afford it.
If you lean on credit when you haven’t made a plan to save for larger purchases, you set yourself up to accumulate debt. "90 Day Same As Cash" offers and "12 Months, No Interest" deals seem great at first. But for most (88%), the deal isn’t paid off on time. Getting hit with the back interest and fees makes that sweet deal turn into a bad deal. You lose and the credit company wins.
Living debt free is a lifestyle. Set financial goals, and have a plan by budgeting.
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