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Showing posts with label Money Smarts - Entrepreneurship. Show all posts
Showing posts with label Money Smarts - Entrepreneurship. Show all posts
Words of Wisdom 7: Identity Theft
Do you have a bank account? Where? Regardless of where you bank the real question is do you have identity theft protection?
Be sure to sign up for some form of identity theft protection with your bank, credit card provider, or some company that specializes in identity theft plans.
Related Articles:
4 Keys For Smart Credit Card Use
African Americans and Identity Theft
Pervs, Politicos and Prey:
Protect Your Credit Rating – It Can Impact Your Future!
Words of Wisdom 12: Money Smarts
When comes to credit cards and loans be sure to check the facts about the annual percentage rate (APR) before signing on the dotted line. Is fixed or variable? Under what circumstances can it be raised?
Related Articles:
4 Keys for Smart Credit Card Use
College Debt 101
Avoid the Credit Card Trap
Invest in Real Estate?
Q: What's up Al? I need some advice... I'm livin here at school and I just recently rented a house... my old land lord currently wants to sell my old house for about 78k. I was thinking if I bought the house then rented it out it would be a way to get a income... what do u think?
A: Owning rental property is a good and profitable idea. Here a few things to consider:
A: Owning rental property is a good and profitable idea. Here a few things to consider:
1. Make sure you do a thorough title search or get a title search company to do it. If there is a lien on the house when you buy it then you will end up paying for the lien or even worse, you could lose the house and any money you've put into it. There's NOTHING you can do about that. Ouch. Liens take precedence over anything else.
2. If you end up buying the house make sure you get a FIXED APR, not an adjustable one.
3. How long can you afford to pay the mortgage yourself if you have trouble finding a tenant?I've seen a few people get jammed up dealing with this. It took longer to rent their property than they thought it would. They messed up their credit and almost lost the house because in addition to their normal mortgage, they had to pay the mortgage on the rental property.
Knowing that shouldn't scare you, just prepare you.
2. If you end up buying the house make sure you get a FIXED APR, not an adjustable one.
3. How long can you afford to pay the mortgage yourself if you have trouble finding a tenant?I've seen a few people get jammed up dealing with this. It took longer to rent their property than they thought it would. They messed up their credit and almost lost the house because in addition to their normal mortgage, they had to pay the mortgage on the rental property.
Knowing that shouldn't scare you, just prepare you.
4. If your tenant(s) call you about repairs will you be able to make them or do you have the money to pay someone to do it?
5. Be careful with shady individuals and certain types of college students. They've been known to tear a place up! Get some references before you rent to them and do a credit check.
5. Be careful with shady individuals and certain types of college students. They've been known to tear a place up! Get some references before you rent to them and do a credit check.
Reflect on those five things for awhile because a rental property could give you plenty of headaches and financial worries. But who knows? If you do this right you could graduate debt free or close to it, especially if you end up investing in more than one property. Let me know if you have any more questions.
Words of Wisdom 6: Identity Theft
When is the last time you checked your credit report? Have you ever checked it? Here's a tip:
- Be sure to check your credit report at least once a year. Get a free credit report from www.annualcreditreport.com
Related Articles:
4 Keys For Smart Credit Card Use
African Americans and Identity Theft
Pervs, Politicos and Prey:
Protect Your Credit Rating – It Can Impact Your Future!
How do you retire with an extra million dollars?
Q: "You did a money management session today at Georgia State University…do you have any books you would recommend to[young people] for money management and investing? Lastly, what was the calculation that you did to figure out the millionaire question, in case I wanted to retire earlier? Thank you.”
A: I had a great time at Georgia State. Here's a Millionaire Formula: Starting at age 22 (or earlier) invest $3000/yr. in a Roth IRA (Individual Retirement Account) for 43 years (up to age 65) at 8% interest and you'll retire with an extra million dollars.
There are other accounts or investments you could use if the interest rate is good but a Roth IRA is supposed to be good for people in your age group because you’ll probably be in a higher tax bracket when you retire than you are in now. With a Roth IRA you don't get taxed at 65 when you take out the money. (WARNING: Talk to your bank or a financial adviser.)
Here are several good books on money management for young people:
The Money Book for the Young, Fabulous & Broke by Suze Orman
The Wall Street Journal Guide to Understanding Money and Investing by Kenneth Morris
The Money Book for the Young, Fabulous & Broke by Suze Orman
The Wall Street Journal Guide to Understanding Money and Investing by Kenneth Morris
Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good by Dr. Boyce Watkins (for mature audiences only!)
Related Articles:
Related Articles:
Words of Wisdom 15: Money Smarts
Do you know the highest credit score a person can have? Do you know the five determining factors for your credit score?
- Your credit score can range from 300 (poor) to 850 (excellent). 35% is determined by your credit history, 30% Debt, 15% length of credit history, 10% new credit, 10% type of credit used.
Related Articles:
4 Keys for Smart Credit Card Use
Avoid the Credit Card Trap
College Debt 101
Words of Wisdom 25: Money Smarts
This is how most people think: I'll trade some time for some dollars. Every time I do a task, project, or something similar I get paid for it.
This is how entrepreneurial minded people think: How can I do something once and keep getting paid for it even if I NEVER do it again?
That's called residual income. Residual income, doing something once but getting paid for it over and over, is one of the secrets of financial freedom.
Examples: royalties from writing a book, making a film, recording an audio program or song, or building an ecommerce website.
Related Articles:
Secrets to Becoming a Successful Campus CEO
Inside the Business Mind of Russell Simmons Creating a Business Legacy
Farrah Gray – From the Projects to Self-Made Millionaire
Words of Wisdom 2: Money Smarts
One of the things college students spend the most money on is food. So here's a quick and simple tip that will help keep the food you eat from eating your cash.- NEVER go shopping when you’re hungry! Also, make a shopping list and stick to it.
Related Articles:
4 Keys for Smart Credit Card Use
College Debt 101
In Plastic We Trust: 4 Keys for Smart Credit Card Use Pt. 4
(continued from part 3)
4. Balance
Make more than the minimum payment and avoid maxing out your card(s).
The best thing you can do with your credit card(s) is pay off the balance every month. Paying off the balance in full will make your charges less costly in the long run and will help to nullify the APR. Also, this keeps your card free for any emergencies.
If you can’t afford to pay off the balance every month at the very least make more than the minimum payment.
The worst thing you can do—next to missing a payment—is to haphazardly max out your card(s). In addition to possibly causing tremendous financial strain, maxing out your credit will automatically damage your credit rating because you are using more than 50% of the available balance.
So, even if you have a low interest rate and can actually afford the payments, maxing out your card is a no-no.
Did you know…
…that over 50% of all college students max out their cards?
Statistics from several different surveys and reports estimate that the average amount of credit card debt per student is around $2100 to $3000? One out of every five 18-20 year olds has $3000-$7000 in credit card debt.
This means that there are many full-time students bogged down with full-time debt and a part-time job. In fact, some have no job.
At the end of a seminar that I was teaching at Spelman, a young lady came up to me asking for advice on how to manage her credit card debt, which had gotten way out of hand. I was suggesting some steps for her to take when she stopped me in mid-sentence to say: “But see the thing is, Mr. Duncan, I don’t have a job.”
Do you think I was surprised?
Do you think I was flabbergasted?
I wasn’t. Almost every time I speak at a college or university—if the topic is money—at least one student approaches me with a scenario like that young lady’s.
In spite of all of the staggering statistics, credit cards aren’t bad; people use them badly.
Credit cards are tools and just like any other tool the result produced depends on who wields the tool. Adhering to these 4 Keys for Smart Credit Card Use will help you to utilize your tool wisely.
Sources:
Undergraduate Students and Credit Cards in 2004:An Analysis of Usage Rates and Trends
The Nellie May Foundation
Variables Influencing Credit Card Balances of Students at a Midwestern University
Lucretia Mattson, Kathleen Sahlhoff, Judith Blackstone, Blaine Peden, and Abraham Y. Nahm
Related Articles:
Book Provides Tips on Getting Out of Debt
"Maxed Out" Explores Phenomenon of Debt In America
Is the United States Heading For a Crash. Experts warn of huge ...
Undergraduate Students and Credit Cards in 2004:An Analysis of Usage Rates and Trends
The Nellie May Foundation
Variables Influencing Credit Card Balances of Students at a Midwestern University
Lucretia Mattson, Kathleen Sahlhoff, Judith Blackstone, Blaine Peden, and Abraham Y. Nahm
Related Articles:
Book Provides Tips on Getting Out of Debt
"Maxed Out" Explores Phenomenon of Debt In America
Is the United States Heading For a Crash. Experts warn of huge ...
In Plastic We Trust: 4 Keys for Smart Credit Card Use Pt. 3
(continued from part 2)
3. Research and Choose Wisely
Shop around; know the terms and conditions before accepting a credit card offer.
I’ve come to the realization that a lot of times people don’t know what’s going on and they don’t want to know what’s going on… until it’s too late. As long as it’s easy and they can have what they want, that is good enough… until there’s a discrepancy.
Therein lies the self-imposed problem when it comes to credit cards. You have to know what’s going on if you’re going to get the best rates, be able to use your card to your advantage, and not get smacked with all kinds of fees you didn’t know about.
Did you know…
…that according to R.K. Hammer Investment Bankers, a California credit card consulting firm, banks collected $14.8 billion in penalty fees in 2004?
How many enraged customers do you think called up their credit card provider saying things like -- “but I didn’t know anything about those fees.” or “I didn’t know my APR was going to go up that high.”
When I got my first card in college, I was one of those enraged customers. But it was my fault and being angry didn’t make the bill any lower.
Once again, you want to know ahead of time.
You maybe surprised at how much terms and conditions vary from card to card. You can find out what you need to know, however, by reading the fine print and the Schumer Box or Disclosure Chart – the chart on the application that summarizes the main terms and conditions for the card.
Many people make the mistake of only going over the Disclosure Chart so they miss out on other hidden charges and transaction fees until their statement arrives in the mail. Read the fine print.
ANNUAL PERCENTAGE RATE (APR)
The Annual Percentage Rate is the amount of interest you pay based on the balance you carry on your card. Your APR could be any where from a reasonable 7.99% all the way up to an outlandish 29.99%!
The national average is around 15%. The average for college students is around 17%. The APR on my first card was 23.99%. Ouch.
When you’re reading the fine print take notice of whether or not they’re offering you a fixed APR or a variable rate, which is not good. Find out if it’s an introductory rate that is going to go up after six months. Also, find out if your APR will increase if you make a late payment.
By the way even with a fixed APR, you should know that credit card providers can still raise your rate. In some cases this could happen with as little as 15 days notice!
Tiered pricing is something you definitely want to be on the look out for. This anti-consumer practice denies you your right to know. A company sends you a range of possible APR’s such as 8.99%-18.99%. Once you’ve applied, the company then uses your credit history to determine your APR.
Did you know…
…that you can negotiate with your current credit card provider for a better APR? Call them. Tell them you want a lower APR. The better your history is with them the better your chances.
ANNUAL FEE
Some credit card providers charge an annual fee for the usage of their card. If your credit is good, you can find a credit card with no annual fee.
CREDIT LIMIT
This is the maximum amount of credit that you can charge to your card. According to research, 50% of all college students max out their credit cards. So be sure to choose a limit that you know you handle responsibly. You only want a limit high enough to take care of necessities and emergencies.
SECURED CREDIT CARDS
This is a card where you are required to put down a deposit that equals the amount of your credit limit. As long as you are responsible with your card(s) you won’t ever need a secured card. These cards are typically used by people with poor credit.
TRANSACTION AND PENALTY FEES
There are all kinds transaction fees that could be charged to your card. Cash advances, balance transfers, quasi-cash transactions – like buying lottery tickets – are some, but not all, of the types of fees you could incur.
Penalty fees include late payments and over-the-limit charges. Over-the-limit charges are HIGH. You might be wondering, “How can you charge more than your limit?”
One way people end up over the limit is by maxing out their cards and then receiving transaction or penalty fees at the end of the billing cycle. I was in serious pain when I started getting hit with over-the-limit charges on my first card.
If possible, you want to avoid transaction and penalty fees completely. These are the things that can cause you to end up paying $600 for a plane ticket that originally cost $300. Not cool.
GRACE PERIOD
This is the amount of time you have before interest begins to accrue on your purchases. The typical grace period is about 25 days. Paying off your balance before the grace period is up will save you money.
CASH ADVANCE
I messed up my second credit card by taking out cash advances to make payments on my first card. And a few times I took out an advance just so I could have some cash in my pocket. By the time I realized how much extra the advances were costing me it was too late.
Moron.
Unless it is an extreme emergency, NEVER get cash advances with your card. A cash advance is an immediate cash loan from your credit card. The APR on cash advances is higher than your normal APR, there is usually a transaction fee involved, and typically there is no grace period.
Once you’ve done your research and chosen wisely, this next key is…
Shop around; know the terms and conditions before accepting a credit card offer.
I’ve come to the realization that a lot of times people don’t know what’s going on and they don’t want to know what’s going on… until it’s too late. As long as it’s easy and they can have what they want, that is good enough… until there’s a discrepancy.
Therein lies the self-imposed problem when it comes to credit cards. You have to know what’s going on if you’re going to get the best rates, be able to use your card to your advantage, and not get smacked with all kinds of fees you didn’t know about.
Did you know…
…that according to R.K. Hammer Investment Bankers, a California credit card consulting firm, banks collected $14.8 billion in penalty fees in 2004?
How many enraged customers do you think called up their credit card provider saying things like -- “but I didn’t know anything about those fees.” or “I didn’t know my APR was going to go up that high.”
When I got my first card in college, I was one of those enraged customers. But it was my fault and being angry didn’t make the bill any lower.
Once again, you want to know ahead of time.
You maybe surprised at how much terms and conditions vary from card to card. You can find out what you need to know, however, by reading the fine print and the Schumer Box or Disclosure Chart – the chart on the application that summarizes the main terms and conditions for the card.
Many people make the mistake of only going over the Disclosure Chart so they miss out on other hidden charges and transaction fees until their statement arrives in the mail. Read the fine print.
ANNUAL PERCENTAGE RATE (APR)
The Annual Percentage Rate is the amount of interest you pay based on the balance you carry on your card. Your APR could be any where from a reasonable 7.99% all the way up to an outlandish 29.99%!
The national average is around 15%. The average for college students is around 17%. The APR on my first card was 23.99%. Ouch.
When you’re reading the fine print take notice of whether or not they’re offering you a fixed APR or a variable rate, which is not good. Find out if it’s an introductory rate that is going to go up after six months. Also, find out if your APR will increase if you make a late payment.
By the way even with a fixed APR, you should know that credit card providers can still raise your rate. In some cases this could happen with as little as 15 days notice!
Tiered pricing is something you definitely want to be on the look out for. This anti-consumer practice denies you your right to know. A company sends you a range of possible APR’s such as 8.99%-18.99%. Once you’ve applied, the company then uses your credit history to determine your APR.
Did you know…
…that you can negotiate with your current credit card provider for a better APR? Call them. Tell them you want a lower APR. The better your history is with them the better your chances.
ANNUAL FEE
Some credit card providers charge an annual fee for the usage of their card. If your credit is good, you can find a credit card with no annual fee.
CREDIT LIMIT
This is the maximum amount of credit that you can charge to your card. According to research, 50% of all college students max out their credit cards. So be sure to choose a limit that you know you handle responsibly. You only want a limit high enough to take care of necessities and emergencies.
SECURED CREDIT CARDS
This is a card where you are required to put down a deposit that equals the amount of your credit limit. As long as you are responsible with your card(s) you won’t ever need a secured card. These cards are typically used by people with poor credit.
TRANSACTION AND PENALTY FEES
There are all kinds transaction fees that could be charged to your card. Cash advances, balance transfers, quasi-cash transactions – like buying lottery tickets – are some, but not all, of the types of fees you could incur.
Penalty fees include late payments and over-the-limit charges. Over-the-limit charges are HIGH. You might be wondering, “How can you charge more than your limit?”
One way people end up over the limit is by maxing out their cards and then receiving transaction or penalty fees at the end of the billing cycle. I was in serious pain when I started getting hit with over-the-limit charges on my first card.
If possible, you want to avoid transaction and penalty fees completely. These are the things that can cause you to end up paying $600 for a plane ticket that originally cost $300. Not cool.
GRACE PERIOD
This is the amount of time you have before interest begins to accrue on your purchases. The typical grace period is about 25 days. Paying off your balance before the grace period is up will save you money.
CASH ADVANCE
I messed up my second credit card by taking out cash advances to make payments on my first card. And a few times I took out an advance just so I could have some cash in my pocket. By the time I realized how much extra the advances were costing me it was too late.
Moron.
Unless it is an extreme emergency, NEVER get cash advances with your card. A cash advance is an immediate cash loan from your credit card. The APR on cash advances is higher than your normal APR, there is usually a transaction fee involved, and typically there is no grace period.
Once you’ve done your research and chosen wisely, this next key is…
(continued in part 4)
Sources:
Undergraduate Students and Credit Cards in 2004:
An Analysis of Usage Rates and Trends
An Analysis of Usage Rates and Trends
The Nellie May Foundation
Variables Influencing Credit Card Balances of Students at a Midwestern University
Lucretia Mattson, Kathleen Sahlhoff, Judith Blackstone, Blaine Peden, and Abraham Y. Nahm
Lucretia Mattson, Kathleen Sahlhoff, Judith Blackstone, Blaine Peden, and Abraham Y. Nahm
Related Articles:
Book Provides Tips on Getting Out of Debt
In Plastic We Trust: 4 Keys for Smart Credit Card Use Pt. 2
(continued from part 1)
2. Delayed Gratification and Impulse Control
Practice delayed gratification and impulse control to develop your money smarts.
We live in a “broadband” society. Everything is about high speed. Everything is about “now”. (Except for hard work- people always want to delay that, right?)
As a result of this mindset- in all facets of life, not just finances- delayed gratification and impulse control have become seldom seen phenomena. And that is a shame because many a debacle in life is caused by impulsive behavior.
How many times have you made a spur-of-the-moment decision and regretted it later? How many times have you gone to the store to get one thing, but ended up coming back with three or four things? Maybe you even came back with something totally different.
For most people, the first thing they do when they get more money is spend more money; the more credit they have available the more they charge.
People with money smarts have a different philosophy. The more money they get the more they save and invest. And the more available (unused) credit they have the more they are prepared to deal with emergencies.
DELAYED GRATIFICATION
Delayed gratification is the marriage of discipline and patience. It is the ability to distinguish between temporary fun and permanent consequences. Know that you will avoid a lot of problems and frustrations in all areas of your life by mastering delayed gratification.
To master delayed gratification you must:
*Understand that it’s simple, but far from easy to master this skill.
*Identify your most important goals and values.
*Constantly ask yourself: “How might this action or decision impact my goals and *values? Am I okay with that now and in the long run?”
*Practice delayed gratification often, even on minor things, until it becomes second nature.
IMPULSE CONTROL
Impulse control is the triumph of logic and reasoning over impulsive behavior. It is the ability to think clearly in the moment instead of acting blindly. Like delayed gratification, mastering impulse control is simple, but challenging because it requires you to:
*Pause in the heat of the moment and think of the ramifications of your actions and decisions so that you can make a wise choice.
You want to control your impulses before and after you get a credit card. Have you ever been in a store and they offered you a chance to receive a discount on your purchase by applying for a store card?
It happens all the time and people don’t even bother to read the fine print. It’s love at first sight. They fall in love with the plastic. They just impulsively sign up and then impulsively start purchasing things. Not good.
Did you know…
…that all new credit cards will have the words “In Plastic We Trust” stamped on them?
I’m just kidding. New credit cards may not have those words stamped on them, but those words are stamped on the minds of many credit card users.
At a business networking event one night, a college-age entrepreneur tried his best to convince me that his available credit was a part of his net worth.
Absurd.
Since when did credit become synonymous with cashflow? And when did debt become synonymous with asset?
To become more finacially literate and avoid any confusion about the terms, conditions, and usage of your card you want to do some…
(continued in part 3)
Related links:
Globalization Transforming How Poor Peruvians Shop and Live by A Tapia
Edward Jones - Newlyweds, New Financial Future: Financial ...
Success Story: Battling Ageism, Money Troubles in a Job Search
2. Delayed Gratification and Impulse Control
Practice delayed gratification and impulse control to develop your money smarts.
We live in a “broadband” society. Everything is about high speed. Everything is about “now”. (Except for hard work- people always want to delay that, right?)
As a result of this mindset- in all facets of life, not just finances- delayed gratification and impulse control have become seldom seen phenomena. And that is a shame because many a debacle in life is caused by impulsive behavior.
How many times have you made a spur-of-the-moment decision and regretted it later? How many times have you gone to the store to get one thing, but ended up coming back with three or four things? Maybe you even came back with something totally different.
For most people, the first thing they do when they get more money is spend more money; the more credit they have available the more they charge.
People with money smarts have a different philosophy. The more money they get the more they save and invest. And the more available (unused) credit they have the more they are prepared to deal with emergencies.
DELAYED GRATIFICATION
Delayed gratification is the marriage of discipline and patience. It is the ability to distinguish between temporary fun and permanent consequences. Know that you will avoid a lot of problems and frustrations in all areas of your life by mastering delayed gratification.
To master delayed gratification you must:
*Understand that it’s simple, but far from easy to master this skill.
*Identify your most important goals and values.
*Constantly ask yourself: “How might this action or decision impact my goals and *values? Am I okay with that now and in the long run?”
*Practice delayed gratification often, even on minor things, until it becomes second nature.
IMPULSE CONTROL
Impulse control is the triumph of logic and reasoning over impulsive behavior. It is the ability to think clearly in the moment instead of acting blindly. Like delayed gratification, mastering impulse control is simple, but challenging because it requires you to:
*Pause in the heat of the moment and think of the ramifications of your actions and decisions so that you can make a wise choice.
You want to control your impulses before and after you get a credit card. Have you ever been in a store and they offered you a chance to receive a discount on your purchase by applying for a store card?
It happens all the time and people don’t even bother to read the fine print. It’s love at first sight. They fall in love with the plastic. They just impulsively sign up and then impulsively start purchasing things. Not good.
Did you know…
…that all new credit cards will have the words “In Plastic We Trust” stamped on them?
I’m just kidding. New credit cards may not have those words stamped on them, but those words are stamped on the minds of many credit card users.
At a business networking event one night, a college-age entrepreneur tried his best to convince me that his available credit was a part of his net worth.
Absurd.
Since when did credit become synonymous with cashflow? And when did debt become synonymous with asset?
To become more finacially literate and avoid any confusion about the terms, conditions, and usage of your card you want to do some…
(continued in part 3)
Related links:
Globalization Transforming How Poor Peruvians Shop and Live by A Tapia
Edward Jones - Newlyweds, New Financial Future: Financial ...
Success Story: Battling Ageism, Money Troubles in a Job Search
In Plastic We Trust: 4 Keys for Smart Credit Card Use Pt. 1
With a credit card here and a credit card there…here a card, there a card, everywhere a credit card. Old MacDonald had a card. E-I-E-I Oh my God! This has gotten out of hand. Most people, especially college students, are constantly being swarmed with credit card offers.
When is the last time you received a credit card offer? Yesterday? Last week? Or maybe it was sometime within the last month.
Did you know…
…that the average household receives around 8 credit card offers per month?
And that’s nothing compared to the amount of offers college students receive. According to research, the average college student receives 15 credit card offers per week via snail mail, email, and various promotions (i.e. being offered a store credit card during check out). That’s more than seven times the number of offers received per household.
With all of these credit cards all over the place, it’s easy to understand why 76% of undergraduates have at least one credit card. The problem is- the vast majority of credit card holders blindly accept credit card offers. Smart credit card use requires…
1. Awareness
Know why you’re getting it, what it’s good for, and the consequences of poor usage.
These are the primary things that credit cards are good for:
*Helping to build credit history
*Emergencies
*Necessities
And of course…
*Niceties. Like a flat screen or a hot new outfit, right? WRONG.
I’m not saying that you need to wear corny clothes and bobo’s (that’s what we call no-name sneakers in Philly) but you want to read the rest of this article before heading off to the mall.
CREDIT HISTORY
Consistently making your credit card payments on time can help you to establish a good credit history which will increase your credit score over time.
The highest credit score you can have is 850; the lowest is 350. Above 700 is considered excellent. Lower than 500 is considered poor. The better your credit score the lower your interest rates will be on loans and future credit which means that, in the long run, you’ll owe less money. Your monthly mortgage payments and car note will be lower.
EMERGENCIES
Emergencies are self-explanatory. If a piano falls on your head and you need to buy some pain medicine, that’s an emergency.
NECESSITIES
Just because something is important to you doesn’t mean that it’s a necessity. But here’s a tip: If you have to ask whether or not something is a necessity, then chances are it isn’t.
CONSEQUENCES
Make sure that you’re aware of the consequences of poor credit card usage. This is where I failed miserably.
When I received my first card during my first semester in college, I wasn’t aware of anything about credit cards other than knowing that I could use them to “get stuff now and pay later.” I found out, in painful fashion, that pay later really means pay MORE later!
I maxed out my first card in about 10 days (predominantly buying stuff I didn’t need and a few text books) and I didn’t have the money to make the payments.
Dumb.
Within two weeks of receiving the first card, another company sent me a card. I maxed out that one in 10 days, too. How? Buying more stuff I didn’t need (clothes and fast food) and trying to use cash advances to make payments on the other card!
Stupid.
Within in 90 days of getting my first credit card I ruined my credit and had to drop out of school because of debt.
Idiot.
Did you know…
…that university administrators complain about losing more students to credit card debt than academic failure?
Because more and more organizations and institutions are doing a credit check on candidates, excessive or delinquent credit card debt has been known to lead to job and professional school rejection.
Family conflicts, difficulty renting apartments, loan denials, physical and emotional health problems, and, in extreme cases, even suicide have all been attributed to excessive credit card debt.
The way to avoid scenarios like the ones I just mentioned is to practice…
(continued in part 2)
Related links:
Book Provides Tips on Getting Out of Debt
"Maxed Out" Explores Phenomenon of Debt In America
Is the United States Heading For a Crash. Experts warn of huge ...
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