Consumers are taking many different measures in light of our struggling economy. Some are cutting back on the numbers of daily trips in their cars, or carpooling to work for the first time, to save money spent on gasoline. Others are growing vegetable gardens or skipping meals at a favorite restaurant to reduce those monthly food costs. There are a brave few who are taking an amazing step towards financial responsibility ... they are leaving their credit cards at home!
Did you know that 58% of people who own credit cards do not pay the balance in full every month? For those who subscribe to this dangerous practice, the average household balance that is carried on these cards is just over $17,000! Overall, Americans have more than four times the amount of debt than they did in 1990. We are increasingly becoming a society that spends money we do not have.
There certainly are some well-known advantages to having a credit card. You are able to establish and build your credit rating, which will help with home and car loans. Credit companies offer product security and some appealing financial incentives (such as cash back or travel vouchers). And, of course, we cannot ignore the convenience that credit cards bring to our shopping trips. Be wary, however, of using the plastic beyond its point of being beneficial.
Are you considering taking that big step of tucking your credit card away and instead reaching for old-fashioned cash? Have you dug yourself a hole of debt and need some advice on how to recover your good financial standing? Please contact me and let's discuss your situation. I have helped thousands of people learn to manage their money and I can help you, too!
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