Being Good With Money Can be Boring!
We all know that we need to budget, watch what we spend, and not put things on credit. Sometimes this can just seem a little bit dull and depressing! You start the month feeling sure that there will be some money left at the end for a nice meal out/some new clothes etc. but gradually the money goes on other things. The car needs to be repaired, the children need new shoes etc. etc.
Temptation is Always There….
This is when the temptation to put things on credit can be very great. The card that you haven’t used since you got it has 2000 available to spend with zero interest. The feeling of being freed from your monthly budget is brilliant. Yes you can afford that meal in an expensive restaurant, the latest techno gadget, or a trip to the theater.
But the Punishment For Taking on Debt is Swift
Take this path and the feeling of freedom won’t last for long. You will hit the limit on your card, the introductory interest rate will end landing you with a hefty monthly bill. Suddenly you are back to funding your spending out of your monthly budget, only now you have even less money to spend each month.
Is There Ever a Right Time to Take on Debt?
So when should you be funding purchases from debt? I think that you should only use your card if you know you can pay the balance off in full when the bill comes. On very rare occasions it might be worth making a big purchase (e.g. a vacation) on a card if you know that you can clear the balance over a couple of months. To use your card in any other way is to make yourself permanently poorer.