DEBT MOM WANTS TO KNOW: HAVE YOUR CREDIT CARDS BECOME A SECOND PAYCHECK?
Think about it like this:
Whenever you use a credit card, it’s like borrowing from future you. The credit card company is the middle man, and they expect be paid back with interest.
Even if you think you’ll pay it off in a month or two, you’re still accruing interest. And future you haven’t earned that money yet.
It’s time for a reality check.
Are you using your credit cards to pay your bills? If your monthly income can’t support your basic needs, the first thing you need to do is create a budget… then hide your credit cards.
I’ve encountered so many people who put monthly expenses on their credit cards. Things like groceries, utilities, gas for their car, subscriptions and everyday expenses, knowing that their paycheck can’t cover those necessities. You can’t live on your credit cards!
Furthermore, when your paycheck can’t support both today’s necessities and yesterday’s credit card charges, that’s when the cycle starts getting dangerous. It’s a recipe for failure.
Have you ever thought:
- “I’ll pay it off next month”
- “Just this month I’ll use my credit card to pay this one bill.”
- “All my friends are going on vacation, I deserve to have fun too.”
- “I know I shouldn’t buy this, but I want it.”
The fun fact is, credit cards are meant to be a financial tool. They’re not there to support your life or afford you a lavish lifestyle. Basically, you shouldn’t live on your credit cards.
I’ve also had conversations with people who start relying on their credit cards, and want to get out of debt, and think more credit is the answer.
Let me tell you this, more credit is not the answer. So many people shuffle balances from one card or loan to another. Most of the time, that just creates more available credit to run the cards up all over again.
It’s a trap. However, it’s a trap that you can escape from. So if you’re looking for help or guidance, Debt Mom is here to help.
Debt Mom’s Final Thoughts:
One final thing to think about.
If your paycheck ends before the month does, the answer isn’t to get more credit. It’s having a better plan and breaking the cycle once and for all.
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