Credit Cards

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SHOULD I GET A CREDIT CARD?

If you can help it...

NEVER EVER EVER EVER EVER EVER EVER GET A CREDIT CARD 😂

If you are so desperate for money, get a small personal loan for 1x thing that needs to be paid now. Then pay off that load ASAP before taking out another one.

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OH, NO! BUT I ALREADY HAVE A CREDIT CARD!

PAY IT OFF AS SOON AS YOU CAN.

CUT IT UP.

THEN NEVER EVER EVER EVER EVER EVER EVER GET A CREDIT CARD AGAIN 😂

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THAT'S EASY FOR YOU TO SAY!

IMPATIENCE and an IMMEDIATE NEED TO PAY BILLS are the primary reasons for getting yourself stuck with a credit card and all its debt.

An immediate need to pay bills can be dramatically reduced if you begin to use all the automated transfers we help you to create on our Banking and Budgets page and using the techniques from our Ways to Save page.

Perhaps, there will still come a day when a lack of income and an increase in bills when you will need extra credit but, again, attempt to get a personal loan with lower repayment rates and accumulating interest before you ever consider the very last resort of using a credit card.

The goal is to get rid of your credit card altogether,

live off money you actually have,

and never see a credit card ever again.

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IMPATIENCE

Your impatience is the biggest reason credit cards even exist. They thrive on your will not to wait a single more day when you can have it now.

You desperately wanting that expensive shirt now and not next week.

You desperately wanting that console now and not next month.

You desperately wanting that expensive holiday now and not next season.

If you waited until you had saved enough money, you actually spend LESS time waiting for the next thing you want to buy.

If you use a credit card to buy something right now, you have to wait MORE time until you can afford the next thing you want. And more of your fortnightly income goes to paying off your credit card. You aren't saving anything.

Also, using a credit card to pay for things which you could've just waited a bit longer to save up for could be the main reason you eventually need an immediate source of money to pay for important bills.

Why get those shoes, those tools, that expensive hairstyle, that new phone right now

when there's a water bill to pay that's going to make you put the bill on the credit card...

Or you could wait an extra pay-cycle and you can afford both with the need for credit.

Are you just wanting to get something nowbecause it's on sale?

The problem is, it will likely cost you less in the long term if you wait until you could afford it,

rather than getting it now and paying off months of growing interest.

Use our Banking and Budgets set-up provided and our Ways to Save page and you will save more money than you have ever done in your life. More importantly, you're not paying interest.

The key to spending money is...

WAIT A LITTLE AND YOU WILL SAVE A LOT.

If you already have a credit card, the goal remains…

PAY IT OFF AS SOON AS YOU CAN.

CUT IT UP.

THEN NEVER EVER EVER EVER EVER EVER EVER GET A CREDIT CARD AGAIN 😂

If you don't have one, stay as far away from one as you can.

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PERHAPS A PERSONAL LOAN?

Credit card rates can be anywhere from 10-25%.

Personal loans from banks and credit unions can fluctuate between fixed rates of 2% and 9% depending on the economic environment.

Even during horrible economic circumstances, fixed rate personal loans may cost a whole lot less than credit cards.

Consider speaking with a financial advisor about whether your next big bill(s) should be paid off:

- using your own existing savings, but leaving you with less leeway if yet another unexpected bill comes

- using your own savings after you've waited and saved a little longer

- using a credit card with high interest, but less restrictions on paying it back

- or using a personal loan with lower interest and a set, predictable repayment plan.

You could also chat with a financial advisor about taking out a lower-rate personal loan

to completely pay off the high-rate credit card and delete it forever.