Credit Cards & Dependency Issues



Are you a shopaholic? Do you love to go around the mall, try new outfits, get your hands on the latest gadgets, but everything you like? With this spending addiction becoming so common amongst the youngsters, everybody is seen swiping their credit cards. Swipe and pay! You don?t have money? It is okay, the credit card will manage the situation. Take the new shoes home, you can pay the money later when your back account shows some figures. It is good thing but, isn?t it? NO. Because every time you swipe your credit card (and you not have adequate funds in your account), you are creating a debt. And every time there is debt, you are paying enormous interests to cover-up the debt holes, which prevent you from building wealth.

This generation is financially dependent on credit cards. Even though credit card is a flexible financial tool, it is turning everyone into irresponsible and impatient shoppers. Spending is addictive, and credit cards simply add fuel to the fire. So the next time you find yourself using the credit card, remember these tips:

(1) If carrying around cash is a difficult job for you, start using debit cards. Unlike a credit card which allows the holder to borrow money from the card issuer, debit card allows the holder to purchase an item according to the current bank balance. Debit card holds your feet to the ground, and keeps you within your budget.

(2) Maintain a small notebook or a diary having account of your financial record. Prepare yourself a budget in the beginning of the month or the week. Keep a track of your spendings, write it down, set a limit on everything- food, clothes, travel, fun, etc. and review your little ledger every day.

(3) Sometimes when you have a large amount of money in your bank account, you use up all your funds in the beginning of the month, and live poorly for the rest of the days. So switch to cash. When you have the cash in hand, you don?t feel like spending much, especially when you have to write your spendings at the end of the day. This is a bit psychological though, slight manipulation of the mind, but works.

(4) Once you?ve paid your debts, close your credit cards. You may consider putting them into purses or wallets just in the case of an emergency, but not even having that option is actually going to help you lose the urge completely.

(5) If you are scared about a financial emergency popping up, start a savings account. A proportion of your income, at the very beginning of the month will directly go into your savings account, while you can use the rest to plan your month. Financial independence is important once you start earning; you can?t go running to your parents or friends and ask for money every time you face a tough money situation. When it comes to money learn to be a little more organized and responsible. You alone are responsible for your circumstances, so start gaining control over your finances.

Shred your credit cards today! Because when you stick a credit card in the machine, you paying like $3 to get cash your own money. If you can?t pay in cash for an item, you can?t afford it. Don?t let monthly payments burden your life. Don?t be dumb, start saving and be money smart!


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