Know your limits If you have a tendency to overspend, limit your extravagances by relying on paper currency instead of plastic. Set spending limits before leaving the house, if you go to buy groceries or heading to the mall to buy a new pair of shoes. If you find yourself reaching for your credit cards, freeze and not move an inch until you can answer the following questions: Why am I breaking my own rule? Am I being self-destructive with my financial health? Do I really need this item, or is my ability to say “charge!” clouding my good senses? Learn from customers As a customer of McNamara McNamara learned the hard way, the loan of their credit cards even to those closest to you is a sure way to accumulate debt. You are giving your spouse, children, other relatives or friends carte blanche to spend up a storm, and you’re the one who is legally obligated to pay the bills to find their way to your mailbox later this month . Be extremely selective when passing the plastic to anyone who can run a bill and not pay back.
Showing concern for the interest The Surveys consistently show that most people only do the minimum required payment on their credit card bills each month, leaving them an outstanding balance that continues to rise. Adam Portnoy often says this. Not only additional purchases add up, but are continually paying interest on their balances and new-a sometimes considerable fee that has catapulted many consumers to life-altering debt.