pgoat
Senior Member
- Joined
- Mar 15, 2006
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I am sad to say my own CC debt is many times that 5k - though I have been steadily digging my way out.
The sad part is I got my first credit cards at 20 (this was in the mid-1980s) and was very disciplined at first, only using them when I knew I could pay it off in two months tops. I had excellent credit and a zero balance - until I was 25 or so and went back to school.....I needed a new car because I was commuting 30 miles each way to classes and work and bought a lot of clothes (nothing pricey back then - my idea of splurging was to own a pair of Chuck Taylor Converse in every available color - something that wasn't so hard before Varvatos and whoever got their mitts on them.), etc thinking "I'll pay this off when I graduate"
well, 14 years after graduating I still owe roughly the same amount I did then....I've transferred several times to low or no interest cards but it is a drag and a source of stress having all that weight on your back. I've been lucky becuase I have no kids and a lot of my current debt is for musical equipment I am going to sell soon, so I can recoup my money and pay down the debt - not the case with vacations, dinners, clothes, etc. But I have boought relatively littkle of that on credit...(well, the cloithes thing has been bad - worse since the SF entered my life!!)
Point is, rich people are not rich because they don't use credit - they are rich because they use credit wisely, and that means not impulse buying for consumer goods. The gent who posted about saving early on and now having the means to pinch funds for his purchases had the right idea.
If you're a twenty something, get a credit card for emergencies and use it for purchases you can pay off immediately to build credit. And set aside as MUCH of your earnings as possible in diversifeid savings. Compunded interest alone from an early age will make you a happier camper when you reach my age.....
If I ever do have kids they will be taught from day one to manage their money, with an allowance and options on how they spend it. I never got one as a kid, and I think that contributed mightily to my dismal "hole in the pocket" finances later on.
and yes, by all means visit C21, filenes TJ maxx, etc. Ebay is tougher unless you can trust the seller and know what you are looking for.
also, don't leap in too deep at first - I always did this: decide you like sweaters, so you buy a dozen to start with......fun impulse shopping but much better to buy one and find you never really wear it than to have 12 unused sweaters taking up space and racking up debt. Take your time....the clothes will still be there tomorrow.
The sad part is I got my first credit cards at 20 (this was in the mid-1980s) and was very disciplined at first, only using them when I knew I could pay it off in two months tops. I had excellent credit and a zero balance - until I was 25 or so and went back to school.....I needed a new car because I was commuting 30 miles each way to classes and work and bought a lot of clothes (nothing pricey back then - my idea of splurging was to own a pair of Chuck Taylor Converse in every available color - something that wasn't so hard before Varvatos and whoever got their mitts on them.), etc thinking "I'll pay this off when I graduate"
well, 14 years after graduating I still owe roughly the same amount I did then....I've transferred several times to low or no interest cards but it is a drag and a source of stress having all that weight on your back. I've been lucky becuase I have no kids and a lot of my current debt is for musical equipment I am going to sell soon, so I can recoup my money and pay down the debt - not the case with vacations, dinners, clothes, etc. But I have boought relatively littkle of that on credit...(well, the cloithes thing has been bad - worse since the SF entered my life!!)
Point is, rich people are not rich because they don't use credit - they are rich because they use credit wisely, and that means not impulse buying for consumer goods. The gent who posted about saving early on and now having the means to pinch funds for his purchases had the right idea.
If you're a twenty something, get a credit card for emergencies and use it for purchases you can pay off immediately to build credit. And set aside as MUCH of your earnings as possible in diversifeid savings. Compunded interest alone from an early age will make you a happier camper when you reach my age.....
If I ever do have kids they will be taught from day one to manage their money, with an allowance and options on how they spend it. I never got one as a kid, and I think that contributed mightily to my dismal "hole in the pocket" finances later on.
and yes, by all means visit C21, filenes TJ maxx, etc. Ebay is tougher unless you can trust the seller and know what you are looking for.
also, don't leap in too deep at first - I always did this: decide you like sweaters, so you buy a dozen to start with......fun impulse shopping but much better to buy one and find you never really wear it than to have 12 unused sweaters taking up space and racking up debt. Take your time....the clothes will still be there tomorrow.