What is the worst trap that almost everyone falls into? Cards of course, credit cards, store cards, and even your debit cards if you have overdrafts allowed.
The main problem with cards is that it is so easy to spend money and to keep spending money, because once you reach your limit it is so easy to apply for a new credit card, or to move to a different store and open another account.
You go shopping and there in the window you see a fab designer dress at a designer price, but that doesn’t stop you. You rush in, hand over your card and the designer dress is yours. It was so easy.
But what if you didn’t have a credit card but had that amount in cash in your purse, would you have been just as happy to hand over your cash?
Its a strong bet that you wouldn’t unless you had gone out to buy a dress for a special occasion.
The problem with credit cards is that you don’t feel as if you are spending money so it is easy come easy go, until you get to the point where your monthly payments have overtaken your monthly salary. You are now so deep in debt that you don’t know which way to turn.
The only way out is a debt management company which means lower payments but you are chained for the next few years repaying your debt.
Was it worth it and would you do it again?
If you have not sunk too deep yet you have a chance to change the way you use your credit and store cards, that is if you have any sense.