Your very own credit card…how cool is that? Can you imagine? You’d have it all! New CDs, new sound system, party clothes, MP3 player, tickets to any concert…the key to happiness. Buy anything you want with no worries.

Stop dreaming and wake up!

Credit is nothing more than someone else loaning you money and charging you for the loan. They kindly tell you that you only need to pay a small amount each month, a minimum payment, when the truth is that the less you pay each month, the higher the price you pay in the end.  Credit makes spending easy and accessible, especially when you don’t have any money in the bank.

Having credit can be very helpful to your financial situation, if you have the self-discipline to use it responsibly. While credit cards can be helpful, they also can be just as harmful. When you charge them up beyond your ability to pay them off each month, you are rolling backwards into the dangers of debt. But, when you use them wisely and responsibly, you shift into high gear towards establishing a good credit rating needed for car or home ownership.

The most dangerous part of your financial journey will be in the land of credit. When you think of credit, think of a big CAUTION sign.  Turn on your brights, proceed slowly, and always look for danger signals! When you see credit, remember the rules of the road!

What is Credit?