Your relationship with
money is often a result of how your parents treated their own money. Some young
adults picked up bad habits and never learned to understand the negatives of
credit card usage. For those of you looking for help from your local payday loan
provider, you are probably experiencing one of the side effects of not
understanding how credit cards will affect personal finances.
*Credit cards play a
big part of credit scores. Good management and longevity are two key factors.
- Pay creditors on time.
- Leave less than 30%
of credit limit as a balance transferred to the following month.
- Don't cancel old
accounts unless absolutely necessary.
- Use all cards in
rotation. Make a small charge and pay it off. Use a different card each month
to keep them active.
These lessons are
rarely learned until it is time to climb out of a pile of unaffordable debt.
* Know the interest
rates. If you do have to make a purchase and you know that you will not be able
to afford to pay it off in full right away, use the credit card with the
smallest interest rate. This action will save you money in the long run.
* Each time you apply
for a credit card, the creditors do a hard inquiry into your credit history.
This action leaves their calling card so every other company that has
permission to look at your credit will know. Too many calling cards make you
look desperate for cash. A hard inquiry will also take a point or two off of
your credit score.
* Have a usage plan.
Will you dedicate one card to gas and another for food? Will you set charge
limits in order to maintain payoffs at the end of the month?
* Don't bank of
minimum payment affordability if you charge large or multiple purchases to run
up your debt.
* Credit challenges
create many personal finance problems.
- Interest rates
increase
- More income used to
pay interest charges and less towards principle
- Diminished chances
of help from banks, credit unions and other creditors
- There are greater
chances of needing payday loan providers or car title lenders when money
emergencies occur.
When a child see their
parents use credit cards for all their shopping trips and dinners out to
restaurants, they do not get a proper introduction to money management.
They rarely see actual
cash. Household budgets are not often explained and living within their means
is a foreign subject. Children who always got whatever they asked for or never
heard the explanation as to why their parents said 'no' may not have the best
understanding of wants and needs.
Payday loan lenders
see many people every day, some have children alongside. They come looking to
get fast cash so they can get their groceries, buy gas for the car or even pay
the rent. These are the lessons taught to some young children.
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