Using Credit Wisely?

Any time you use credit, make sure you know how to use it properly and in a way that will improve your life rather than make it more difficult.

Talk About It

If anyone else is affectedby your decision to get credit, make sure you explore alternatives with them first.

Check Your Budget

You should have a copy of your budget accessible when talking to someone about your credit. Your spending plan can help you determine if you have enough money to pay a credit card payment or a loan.

Do Not Be Fooled

You need to review your spending plan thoroughly and decide whether this month was an average month. Make sure you consider all factors before deciding if you can accept more financial obligations.

Ask The Hard Questions

Did you get a bonus this month, giving the impression that you have extra money at your disposal? Will you once again find yourself with little left over at the end of the month starting next month? Are you thinking about withdrawing funds from your savings account to pay off a loan or credit card balance?

Do Not Break Into Your Savings

Do not even think about withdrawing funds from savings to take on a new recurrent debt! Does it make sense to spend more money and reduce your savings? If you really must accept the loan, think about where you can decrease costs.

More Income In the Future?

Understand that your future will be affectedby the choices you make now. If you get a second job or an increase in your salary, you might be able to pay the extra charges; otherwise, that new credit card might not be such a great idea.

Be Responsible

Being responsible with your credit can help you make sound financial decisions. Regular credit account payments will ensure you have an excellent credit history, establishing your reputation as an excellent borrower. Having good credit makes it easier to secure a good loan with a reasonable interest rate. This positive borrower behavior can help you stay out of debt while also improving your credit score.

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