Credit Card Confession

Has the credit card companies come to whisper in your ear yet, college students?
They will because they know you are all alone and they can entice you with a lot of nonsense about being able to improve your credit score.

The truth of it is that lenders can get a read on your finances many other ways other than a credit score. If you have $10,000 dollars in the bank and a pay stub that shows you get paid $40,000 a year, somebody is going to sell you a house. Other than real estate, no other purchase should involve payments. You can buy most things with saving for a little while and paying cash. Cars are the worst thing to make payments on. They lose value every day while you make payments that extend your price until you pay it off. In other words, if you buy a truck for $40,000 with payments for 15 years, you will end up paying close to $50,000 for it by the time you own it. How much with the truck be worth in 15 years? Not much, even though only not do you technically own it. You basically rented it for 15 years.

Credit Cards are the worst thing to use if you don't pay it off every month. Scientist have proven that your brain has very little activity when you charge something on a credit card. This means that you don't really get that you are spending money you have to pay back. Your brain doesn't communicate the necessary tension one naturally feels when you pay for something with cash. Therefore, you spend a lot more when using credit cards. That is how credit cards work. You spend and spend until the monthly statement comes in and you realize you can't pay it off. Then whatever you bought with that money (clothes, travel, eating out, entertainment, ect.) has just gotten more expensive. An $18 movie night will cost you $20 now because you didn't pay the credit card off in time. Credit cards compound interest which can put a big dent in your wallet if not make your wallet dissolve into nothing........ only payments to your credit card.

Don't do it! Stay credit card free and rest in the truth of spending real money that you already have in a debit card or cash. I would recommend everyone check out www.daveramsey.com and type in "7 Baby Steps". The plan will get you on your feet or back on your feet. If you stick to it, this plan will get your feet running in the right direction towards financial success!