Posts
Here are some main things
that will cause debt.
Credit Cards
Yep I said it “Credit Cards”. I think that when people get a credit card
they get it for the wrong reasons. As soon as the card arrives in the mailbox,
its “shopping time”. By the time two months have gone by their bill will be
over a thousand dollars. Then it will be impossible to pay it off. It is funny that when we turn 17 or 18,
companies will send us credit cards. As a young person we have no sense and
apply for one. Unfortunately by the time we are in our 20’s we’re in debt. I’m not saying we shouldn't have a credit
card; everybody just needs to use it right. Having a card helps us keep our
credit scores at the right level. When you get or already have a credit card, buy
things a little at a time. When your bill comes, try to pay a little extra if
you can. Once you finish paying your bill buy something else. Just don’t go over
board and use wisdom.
Loans
including house and car mortgages
Borrowing money is one of the biggest things that causes debt
in the US. I know that it’s good that we can get money to pay our bills etc.
Sometimes it can be a heart breaker if it’s not used right. That’s why it’s
good to have a savings account or invest your money in a well searched company.
When you need money for an emergency, you can get it out of your accounts. When you borrow money you have to pay it back
with interest. It’s a bigger risk when you get a mortgage on your house and
car. If you don’t pay your bill they will take it right from you. Like I said
about the credit card, make sure you use wisdom. Getting loans can be good for
great things. Like starting your own business and other things you can profit
from. Think before you decide to do anything.
