Stop abusing credit; Judicious use of credit makes more sense

Credit and Financial Management

09:36 16 November 2014

It is not a secret that most people get into lots of trouble due to poor credit. Credit is not bad; however, with poor control and application of credit, you can find yourself in deep problems that will cripple your finances for a long time. Most people just use credit because it is available, however, you should use it as a backup for your resources and pay it within the shortest time possible to avoid further problems. 

 

Credit represents the available funds that you can rely on anytime you have an emergency situation. Although it can be said to be a constant input, it is provided on the amount of funds you can access and what you get through profits and earnings.

 

Most people will tend to use more credit anytime they receive a higher credit limit. Hence, there is a true danger of overusing credit this way. You have to control your financial expenditure and limit to spend on what is at your reach, leaving the credit resource for unknown emergencies that might hit you at a bad day. 

 

You can be saving money in your account but at the same time spending much of your credit. This is not helping you at all. You have to stop relying on the credit first and ensure you can run on your income. After that, cut on your spending and the remaining money set aside for your saving. This way you will find it easy to control your income such that you can live on it without taking advance credit.

 

However, you can’t manage your credit without managing your finances first. You have to ensure you get what you need without going broke. Ensure you do not get take unnecessary credit in the form of loans so as to meet your set goals. Extra credit taken without a purpose can hurt you badly.

 

Identify all factors that encourage you to abuse credit so you can prevent yourself from wrecking your financial future. You don’t have to deal with the effects of ruined credit