4) Credit Cards
I got my first credit card on my way into a University of Georgia football game when I was 19. MBNA was giving away free t-shirts to every person signing up for a new card. Two years later, I still had that UGA t-shirt, along with an amazing wardrobe and a credit card balance of $4,000.
Lucky for me, I was able to pay off that hefty debt, but, there was a point, during which I was barely paying the minimum balance, which happens to be a recipe for disaster. Credit card companies love to make credit easy for you to get and will often extend your line of credit, “as a courtesy.” Well, how nice of them. Now they can raise your interest rate and really make you pay.
Tips from a Reformed Shopaholic:
- If you carry a balance; never, only pay the minimum balance. Make paying your balance off your highest priority.
- Call your credit card company and ask them to lower your APR. Odds are they will. If they don’t shop around and find a card that allows you the transfer your balance with a 0% or low APR.
- You do not need more than one credit card, period. Pay those store cards off and cut them up. You are totally over it.
Bonus tip – to whet your appetite for next week’s Finance Friday tip, I will give you a little homework. Visit my website to sign up for my Borrow Smart America program. You can’t expect to become a reformed shopaholic until you start getting smart about the financial system and about your own financial situation. Complete the free online program and you’ll not only learn how to save, budget and repair your credit, but you’ll also qualify for a free gift – Quicken Software donated to us by Intuit to help your reformation transformation.
