How to Live Without Credit

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Buy it when you have the money. Have the courage to believe that you can wait to get something you really want until you have the money in your pocket to pay for it. One of the biggest problems many Americans are facing right now is not having the money to make the payments on all of the things they purchased on payments. Many are losing their homes, cars, toys, etc. It is a really sad situation, but one that can be avoided by those who pay for things after they earn the money. I know it is hard to save up 200k for a house and so a house may be an exception of something you would get a lone for, but know before you buy if your monthly income can make that monthly payment. Don’t forget that you have a car payment, grocery, and utility bill as well among others. Buying on credit comes with a price. That price with added interest compounds over the years and that 200k house could end up costing 500k buying it on credit.

Be wise. Take it from someone who has been there. I have a bankruptcy on my record. I was stupid and naive to ways of the credit world. My monthly income wasn’t enough to cover my daily expenses and in the end I lost everything. Perhaps by me sharing, you might take my advice and chose a wiser path. I know what it feels like to not be able to sleep at night. Threatening phone calls from collection agencies caused me to have panic attacks. I never wanted to feel like I couldn’t account for my actions. I used thoughts like, “I will just work harder” to justify my spending habits. Well I did work harder, harder than I would have ever had to if I had just waited to buy things with money in the bank. I lost it all. I had to start over. Starting over. A bright new future was found in my despair. I moved home and lived on $250 a week for a year.

I started seeing through all of the colorful 0% down advertisements. I through away every credit cardsolicitation. I paid for things with cash and they were mine. All of a sudden, instead of living paycheck to paycheck I had money to burn. I felt rich for the first time in my life. I had no payments. I didn’t have to pay anything besides food, shelter and such. Life was simple and I now had time to do all sorts of fun things that I had missed out on working 10 hour graveyard shifts just trying to get by. Time was spent with family and friends instead of with coworkers. I love what all of those hard times taught me.

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