I know the rules. I see the problems. But I can’t seem to break the cycle. We pay them all off, we run them back up, we pay them off, etc. It sure is a slippery slope. Mostly because we’re not saving what we should. If we had less credit card payments, we could save more. Balance transfers and other tactics allow you to save on interest, if you do it right, but they’re just a band aid.
Clearly, spending is the big issue. My husband and I are both impulse buyers with very little use for delayed gratification.
If you’re looking to build credit, it pays to research your options. I like Suze Orman’s books. It also pays to look for best buy credit cards, or cards that offer the best deals. This might seem obvious, but I know lots of people with credit cards high APRs and annual fees. Why? Who knows?
I hope to break this trend with our son. I want him to know all about credit cards and the importance of saving long before he gets to college and everyone and their brother offer him a line of credit. We hope they won’t make the same mistakes we have, but I see that I’m in the same boat as my parents, so what gives?