This tip is from my Special Report written for recent high school graduates. It is also relevant to most adults. (Make that all adults.)
Through no fault of your own, you (we) are living in an “I want it and I want it now” world. Enter the credit card.
The attraction of a small monthly payment is more than just deceiving. The credit card has made this lifestyle a reality, but not without huge repercussions. You might not have studied your last credit card statement closely, but if and when you do, you will see that a balance of $2000 requires a modest monthly payment of $18. How cool is that? Anybody can afford $18. What a deal! However, if you dig a little deeper and see the monthly percentage rate of up to 18% or higher, you will see that you’re digging a rut that is about to introduce more than a little hurt on your life.
Credit card debt can destroy your future faster than yelling “Go Sox!” at a home Yankee game. Do not actively put yourself in harm’s way by failing to understand the negative outcome of that little piece of plastic. These three killer words, “minimum monthly payment,” can destroy your chances for a happy future unless you totally comprehend the ramifications of this practice.
Let’s assume for the moment that your parents have no intention of bailing you out of debt. They are too busy saving for their final cruise around the world, which according to me, is exactly what they should be doing. (With any luck, their “last” written check will bounce.) If you listen to what I am telling you, you won’t care. You will be in a position to fend for yourself.
If you find yourself casting your fate to the winds of the charge card, you will soon find yourself in a predicament that will keep you up at night. Day-by-day, month-by-month, statement-by-statement, your hole will keep getting deeper as you use the credit card to satisfy your daily “needs.” And trust me when I tell you in the blink of an eye, you will be in over your head sung to the tune of $5,000 or more.
This weight on your shoulders is 100% optional on your part and devastating in the long run; but it doesn’t have to happen in the first place! You are just starting out now, and in all probability you have a clean slate. If it is at all possible, go the debit card route, or make it your policy to pay off the full credit card balance every month. I understand that this is a mouthful. I understand that this may be a new concept to you; however, by disciplining yourself in this way you will have a far rosier future.
“Ambition is the path to success. Persistence is the vehicle you arrive in.”
Bill Bradley
| This is just one of the tips Mike Marchev offers High School Graduates who are preparing to enter a world that does not care if they succeed or fail. Do your son, daughter, niece, nephew or next-door neighbor a favor by presenting them with their own copy of 21 Life Changing Tips For The College Bound High School Graduate. |
Mike presents a business-building webinar on the third Thursday of every month sponsored by AmaWaterways. To receive a complimentary invitation send Mike an email with the phrase “AmaWaterways” in the Subject Box. You will also receive a link to the recorded version.
For information on Mike’s 6-Week Online Selling Course, email Mike at mike@mikemarchev.com with the words “sales course” in the subject box.
One thought on “Tip #8: Credit Card Balances Can Ruin Your Life”
This is serious. I just read an article that says the average American has $18,000 in credit card debt. That is a lot of $18 a month payments.