Dont Live On Credit

Never ever live on credit. No credit card. Cash only

Do you know how powerful is a good credit card? Very. Do you know how painful is life with a big credit? Even more. If you ever will have a chance to spin all money from a good credit card, better think twice.

We just wanted to have some fun. Credit card fun

I’m not going to tell you about an imagined person or something what never happened, but about myself. Few months ago, I needed a credit card to rent a card. I thought that my credit score is something equal or lower than zero. What was my surprise when they told me something completely different. Days passed, credit card stayed stable in my wallet. At some point I needed more cash to buy things, and instead of working more – I thought this card could be an answer. Long story short, I ended up with a quite big debt. And I didn’t know how it happened.

Ok – I thought, it won’t be a problem to get rid of that. One, maybe two months or work and it will be gone. Additionally, I can sell few useless things, so they will cover this debt. As for today I still have a small part of it left to return, but now I know the consequences of living on credit.

To spin it – it’s easy. To give it back – it’s not.

Throwing money around is very easy. Especially when you don’t care about paying for it later. But one day, this day of the bill comes and you have to finally pay for it. Then comes a though: why?

I never had a problem with my financial liquidity. Money came from one source, often from another. Even when I didn’t had money – I had it some way. What surprised me about living on a credit was that money flew away from me. It’s not a problem to handle your own expenses every month, but when you have to handle your debts – it starts to be a problem. Few months ago, I managed to spin few month salaries of my home country for a good summer. I didn’t feel it. Money in, money out – no problem. However, money out, debt in – that’s a problem.

Want to buy something? No. Pay your debt first.

Credit cards have one very important and useful use: coverage of temporary shortages of money. When you cover your temporary lack of cash, it’s not a problem because you know that money will come shortly. However, use of credit card as a main source of cash for food is a problem. Especially when you have big limit.

After fighting for few months with my credit card, I think that it’s much much more positive to don’t have money, than to live on a credit. Even if it’s not of a size of an apartment mortgage, it’s still a pain in the ass. Because look: you can have everything on credit, while you have nothing. You stop paying – you lose it. You buy things for cash – you don’t care.

One exception: credit is good only in business.