Chumbimba

How to Avoid Credit Card Debt

14 posts in this topic

Hey everyone,

im a 22 year old college student and realized how important it is to get you finances in order very early. I had a $500 dollar credit card bill (bought books with it) and paid it off. I hear of people having $5000-$30000 in credit card debt or way more and wanted to know how to avoid this trap. Also what would be good to use a credit card for if I decide to keep the one I have. Thank you 

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Don’t spend more than you earn and pay it off before you have to pay interest on it and you should be fine. If you’re worried, keep your limit low so you don’t overspend. If you start accumulating debt, stop using it, block it, repay it as quickly as you can as it can go out of control very easily.


I have an opinion on everything :D

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Posted (edited)

I think you shouldn't fool around with credit cards. They have their upsides, but mostly they are just a trap for people who can't withstand the urge to buy way more stuff they can afford etc ( in my opinion ).

Also, they are very popular in the gambing world for a reason.

Edited by Psyche_92

My journey came to an end. It's all crystal clear now. The "I" that i thought i was ceased to exist. The 5 years of suffering were totally worth it, although i couldn't have done it any differently.

Probably not visiting this forum anymore as of now 5/11/2019.

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On 04/08/2019 at 10:11 AM, Psyche_92 said:

but mostly they are just a trap for people who can't withstand the urge to buy way more stuff they can afford etc

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I recommend avoiding credit cards and even debit cards and just try to pay with cash money. I would give Dave Ramsey a listen as he has pretty solid financial advice. https://www.youtube.com/watch?v=rcVVGg4Xhg8


Why am I so differently wired? Am I a martian?

What kind of twisted experiment am I involved in?

Because I don't belong in this world. -Eminem

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@Chumbimba I don't have a credit card and don't miss it. Simplify your life to bare necessities, don't worry what everyone else thinks you should or shouldn't have/do, and be content with what you do have.

People use credit cards mostly to build their credit history to be able to make major purchases in the future, like a car or house. Better to save up enough to not need take huge loans out and then be enslaved by banks/creditors for years/decades. Renting is becoming a better option to owning these days. Can't take it with you anyways. Adopt essential living, and also what everyone else already suggested above.

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Posted (edited)

Having a credit card will help build your credit history and will make it a lot easier to get a mortgage or another type of necessary loan if you need one. Having no credit history isn't much better if it's better at all, than having bad credit. Pay it off every single month in full, no excuses. If you can't/won't get rid of it or don't get one. 

Edited by mandyjw

Light on Earth The power of love came into me,
and I became fierce like a lion,
then tender like the evening star.” - Rumi

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16 minutes ago, mandyjw said:

Having a credit card will help build your credit history and will make it a lot easier to get a mortgage or another type of necessary loan if you need one. Having no credit history isn't much better if it's better at all, than having bad credit. Pay it off every single month in full, no excuses. 

This.  

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@Natasha I really appreciate this. I am trying to minimize my lifestyle. I am getting more nauseated by materialism by the day. I don't but many material items. Mostly just books to read.

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@Chumbimba This might sound far fetched to some, but I also don't have TV cable and cellphone (just my laptop and home-phone). Gave up cable and cell years ago to have more time to do what I love instead, like being in nature, read, do my art, and travel. 

After my husband passed away, I also sold the house and have been renting a nice little apartment saving on owning mortgage, maintenance/repairs, property taxes and insurance, etc. Bought my car with cash too. No debt, no problem.

I know this life-style is not for everybody, but I do enjoy my debt (stress)-free living that gives me more freedom to enjoy life than when I used to own/maintain all the stuff I didn't need. I do have a good job and save up for retirement, though. 

 

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You avoid that trap by not buying things you cant afford. Be conscious of your income and needed expenses.

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You avoid credit card debt by setting it to autopay the full balance each statement. Carrying a running balance and then paying it off doesn't boost your credit score.

If however you want more buying power than you currently have in the bank, there is an important reason to borrow money and you have the means to pay it off later, credit cards are a much better alternative than taking out loans. You can use them as a cheap or even free loan basically.

Like let's say you want to invest some money in materials for learning useful skills that will pay off, some essential equipment for your work projects, or on the other hand if your immediate survival is threatened and you can't afford enough food. You can open a 0%APR for 18 months credit card and making minimum payments, or balance transfer with a zero interest period. The key is to view it as a short term loan you want to pay off before it charges interest, not free money to spend and then forget about.

 

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I don't use credit cards 'cause if I start spending money I don't have I just can't stop.

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