Don’t Buy on Credit or Take out Loans

Only buy what you can afford. Don’t buy anything until you have the cash to pay for it. That’s it. It’s that easy.

But 2/3’s of North America doesn’t get that, and spends all its money barely making the minimum monthly interest payments on their credit cards each month. They are not even paying down the principle on the loan. GAG!

This is awful. Very few people have enough self control not to spend. We get all the pleasure by whipping out our card and satisfying ourselves today, while the payment part is way off in the future.

Sadly this is the genius plan of credit card companies, for whom your 30-day future becomes every day for the rest of your life making interest payments. They want you to get in so deep you’ll never be able to get out!

When it comes time to pay, VISA or Mastercard doesn’t want your money! They want and need you to make the bare minimum payment and get deeper in debt. They love charging you far more interest than any other loan would. The credit card companies collect 18% interest from you, while the money they loan to you costs them only a few percent.

They easily take in 10% profit per year from you on every dollar you have racked up.

They love it when you max out your cards and have no possible way to pay off the balance. This is the slavery condition in which they would love to have every cardholder. That’s why they give away cards like candy, especially to students and other people they know can’t possibly pay them off.

Drug dealers should have it so easy.

The few people that they do break (bankrupt) aren’t a concern. These companies make so much money on the other people that it easily covers the defaults.

Don’t let this happen to you. The only way to use a credit card is to pay it off in full each and every month. Never buy anything for which you don’t have cash ready to pay the bill when it becomes due. I always have, and have never paid one penny of credit card interest my entire life! Credit card companies have a insiders word for people like me: freeloaders. Tough, call me whatever names you want, I’m not going to fall into their credit-card Hell.

Never, ever use a credit card for credit, simply because the interest rates are too high. If you need a loan, go get one, and pay it off fast.

How much credit card interest do you think you have paid over your lifetime? Scary to consider isn’t it? But we don’t even bother to think about that do we?

If you can’t afford it, don’t buy it. That’s the most important rule here.

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