Money Mishaps: Borrowing Blindly

Hi Money Masters!

When it comes to using credit, it is easy to get caught up in swiping that card for any type of purchase. The mindset of some consumers is that if banks or stores are willing to lend you money then why not use it for whatever you want. You’ll pay it back….WRONG.

Credit the RIGHT Way:

Monthly subscription or another recurring bill

(so you can pay it off in full each month)

Travel

Rare large purchase (Ex: furniture)

Credit the WRONG Way:

Toys

Sports equipment

The latest tech gadget

Clothes

What to do: Try to only pay with cash when purchasing these items. If you do use credit, use only 30% of your credit limit or less. The idea is to use it correctly so that you build or maintain healthy credit.

Remember, keep your spending on track, pay off your balance each month and make smart decisions about the things you buy. YOU are a Money Master!

Blessings to you always,

-Helen