When The Economy Goes Bad, Holster The Credit Cards

by Klaus on April 9, 2010

in Other

When the economy goes bad, like last year (and maybe still, for some), what do you do? Well, what can you do? Make sure you keep your job, which is not always something you decide or control. If the company you work for is in trouble, you might need to rely a little bit on luck and stop building debt on those credit cards and leave your Mastercard at home when you know that you’re going to window shop at your favorite places 🙂

Many people simply cannot cope with having a credit card. They have this “buy now, pay later”-mentality and they are not able to keep up with payments once all the bill starts to arrive in the mailbox. Buying something on credit is usually not a very good idea, unless we’re talking a rather expensive car or a house, of course. Don’t buy a TV or a computer on a credit card unless you need it really bad (like, if you can’t live without it!). Otherwise, take some more time to save up for it and pay it in full – get a few more shifts at work to make an extra buck.

You know, I’ve even seen some people who used their business credit cards as their own personal shopping assistant. Oh my, that’s so not what they were meant for.

I don’t know whether or not it’s “normal” for teens that gets their first credit card, to go on a spending spree. I know too many people who, in a matter of just a few years with a credit card, managed to build up a serious debt because of spending more money than they should, only to give up on the credit cards for several years while trying to pay it all off again.

Do the wise thing and holster the credit cards if the/your economy goes bad – and think not twice, but three times, about buying stuff on credit.

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