Woulda Coulda Shoulda - If I knew then what I know now...

Woulda coulda shoulda … If I knew then, what I know now …. Why is hindsight always 20/20? My biggest advice would be to postpone having credit cards as long as possible. The whole credit issue is a Catch 22.

You need to build your credit by having credit cards, charging and paying off items; yet the lack of immediate payment entices spending way more than your abilities, which starts a vicious cycle of racking up debt, not paying on time and creates BAD credit in some cases. So that thing which you need to help you could end up hurting you in a big way.

Stick to the cash system as much as possible. If you can’t afford it, you don’t need it! Use your debit card to pay off monthly expenses, that way you cannot spend more than you have in the bank. For bigger ticket items, save up for it. The best way to save is putting away a percentage of your income as soon as you get your check. I find doing that, or having the money automatically withdrawn every week is the least painful way to save. It is definitely easier to swallow when done in small doses. Plus transferring to an account, like the ones ING Direct offer, makes the money less accessible and easier to stockpile.

It is okay to charge certain items, but only if you know for sure you can pay it off when the next statement arrives; this way you build your credit without paying any of the finance charges. Don’t get me wrong. There were many times having a credit card got me out of some sticky situations, but you can easily get carried away with swiping that little piece of plastic.

The short and sweet version: Be smart about credit cards. They can be your best friends or your worst enemies.