Credit Card Use: Yes, No and How
By Loren Dunton, (1918-1997) Founder of the ICFE
on your willingnessto read these Credit
Tips. We can all benefit from reminders aboutour credit card spending
and smart people are willing to use thereminders.
Credit cards can be a wonderful convenience and having at leastone for
identification has become almost a necessity in our dailylives. But they
can also be "plastic dynamite" to ourfuture if we carry too many and use
them too casually. And nowonder since even college students find them so
easy to obtain.
What is costly of course is using them to make purchases we areunable to
pay for at the end of the month. Millions of peopleare now paying
twenty-five to thirty dollars-a-month in 15-20percent credit card
Talk about something "dangerous to our wealth!"
If thirty year-olds would invest that $25 a-month at 8 percentthey would
see it grow to more than $57,279 by age 65. Imaginewhat would be
available for those individuals at age 65 who alsocut $75 off their
unnecessary spending and invested hundred a-monthin a good mutual fund
or even in a compound-interest savings accountat 8 percent they would
have almost a quarter million dollarsin savings.
For some, these warning stickers on each credit card will be enoughto
make them stop and think. Just this can help slow down on unnecessaryor
too-self-indulgent spending. Or at least be motivated to putoff a
purchase until one knows it can be paid for when the billcomes.
As Paul Richard, RFC the Institute of Consumer FinancialEducation's
executive director, who created the "Credit/DebitCard Warning Labels"
says, "So many forces in our societyare trying to influence us to spend
our money that we need allthe help we can get to spend less so as to
save and invest morefor our future."
Two helpful ideas: One, create a Spending Plan* because "budgets"don't
work. Two, learn the technique of "Spending-by-Choice",** not on
Remember, for all of us, but young people especially, acquiringbetter
spending habits can change a life ... for the better!
*A "Spending-Plan" is similar, but NOT the same, asa budget, which nine
out of ten people fail at. A " Spending-Plan"gives people the
psychological satisfaction of spending money.A budget while admittedly
it shouldn't, seems to often rob mostpeople of the spending
**The "Spending-by-Choice" technique means usingcredit cards for
purchases only after we have taken enough timeto visualize three other
things that could be purchased with thatsame money.
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