Credit Reports

It finally happened and your credit cards are paid way down or may even carry a “0” balance. It was a struggle sticking with a budget, but it paid off! You are aware of using your credit card for a small amount monthly and immediately pay it off will benefit your credit score. Yet, you almost have yourself convinced that a larger purchase won’t hurt. You have almost talked yourself into believing you’ll pay it off when you get your next paycheck. STOP! Stop now before you are back in the same boat you were in. Don’t leave the sleek motorboat you are cruising in to get back into the creaky, leaking paddleboat you just climbed out of!

This is the time to stay strong and resist temptation and you move on to the next steps towards financial freedom. For some people it is very difficult and without a plan, in less than six months, you can loose the ground you gained.

Ways to resist credit card use temptation:

* Don’t carry your credit card with you-decide ahead of time what your one purchase a month will be and for how much. Take your card out for that purchase, make your purchase, and return home with the card. Leave the card in a secure place at home.
* Have a good credit buddy-take your good credit buddy with you when you use your credit card. A buddy will help you make sound financial decisions on the use of your card and provide support so that other purchases aren’t made when you have the card on you for a specific purpose.
* Make a list ahead of time of acceptable uses of your credit card-a sale is not a good reason to use a credit card (the interest you will pay will be more than what you saved); a car repair is a good reason to use a credit card. Stick with your list.
* Look back at your credit history-remember when there were turn off notices, late payments, and working hours to pay interest. Review where the money now goes (paying off more debt, savings, vacations, etc)
* Read your financial journal-if you kept a financial journal read it. Read and remember how it felt to skip going out with friends, to be working two jobs, and the other emotional effects of being in debt and having overwhelming financial problems.