| It is quite common today to believe that in order to | | | | loss, you should be considering a used vehicle. By |
| survive you have to use credit, but that is simply not | | | | paying cash, and having no car payment you can |
| true. | | | | take the money you would have put on a monthly |
| What do you think people did to survive prior to the | | | | payment into savings and build on for the next |
| invention of credit cards? Back in the early 1950's the | | | | vehicle. |
| Diners Club card was the first credit card developed, | | | | 3.) As part of a budget, have a set weekly amount |
| and it was not until decades later that the use of | | | | set aside for lunch, gas, entertainment etc. and don't |
| credit cards became the pandemic that they are | | | | exceed it. |
| today. | | | | 4.) Want to purchase a new home? You should not |
| The use of credit cards will keep you in the state of | | | | be buying a home without a down payment of at |
| mind of being poor and will not make you wealthy. | | | | least 20%. If you can't afford that, then you should |
| The problem people run into with credit cards and | | | | be considering renting instead. Buying a new home |
| credit in general is that a lot of people really don't | | | | while not being financially fit can be a curse rather |
| know how they work: you borrow money with the | | | | than a blessing. You should strive to have a house |
| intent of quickly paying back the debt, but instead fall | | | | payment no more than 25% of your take home pay. |
| into the trap of making payments for decades falling | | | | Many people today face foreclosure because they |
| even further behind and paying triple even quadruple | | | | bought into the hype of the "no money down", |
| the original purchase price of stuff put on credit in | | | | sub-prime mortgage mess and bought more home |
| the first place. | | | | than they could afford. Don't make that mistake. |
| So how do you survive with no credit? | | | | 5.) You may need a credit history in order to |
| 1.) Obtain a debit card. A credit history is not needed, | | | | purchase a cell phone on a two-year contract plan. If |
| and with one you cannot spend more than you have. | | | | your credit is bad, or you don't have the cash you |
| 2.) Do you need a car? Pay cash. Unless you have a | | | | should opt for the pay-as-you-go option. There are |
| 7-figure stash of cash you should never buy a new | | | | many affordable plans to chose from these days, |
| car. A new car loses 60% of its value in the first 4 | | | | and in many cases these plans start in the $40-$50 a |
| years. Since most people can't afford that kind of a | | | | month range with unlimited minutes. |