Cash versus credit

Posted on | August 31, 2009 | 2 Comments

One of the things I learned when I started working at home is to avoid buying in credit. I save up for an item I would like to buy. If I don’t have enough yet, then I wait for the funds to be available before I buy it. That simple.

This is why you are in debt… You use credit to purchase things you can’t afford to buy in cash. – If you can’t pay for it in cash today, don’t buy it today! It’s as simple as that. – Marc and Angel Hack Life

I hate debts. I’ve been in a situation where I was neck-deep in debt and I didn’t know how to get out of it. Slowly, through proper planning and a lot of sacrifices, I was able to eliminate my debts one by one. I’ve managed to stay afloat for years now and I credit hard work for that. I no longer have a credit card to my name. It was my one big source of debts. I used to have three and then I cut down to one and then I had the last one cut I think five years ago. As what Marc and Angel said, if you can’t buy it in cash today, then don’t buy it today! That’s my philosophy now.

I don’t want to go back to that period in time when all I did was pay debts left and right. And then I would wait for the next paycheck to arrive. It was a scary period for me and one that I will do my best to avoid being in once more.

Category: General Details, Me Myself and I

Comments

2 Responses to “Cash versus credit”

  1. Vicki@frugalmomknowsbest
    September 2nd, 2009 @ 1:42 am

    We are still in that phase and I HATE it, it doesn’t help that medical bills are out of control. I keep all the cc at home now, so I can’t spend them, but if there is an emergency, I have it.

  2. Maria@Conversations with Moms
    September 2nd, 2009 @ 5:11 am

    I learned the hard way about using credit instead of cash when you don’t have the funds. I’m still paying the price for it.