I cannot say I have succeeded in not using credit card but have brought the use to the barest minimum by arranging my priorities. I have been able to create a criteria in deciding what is what taking on credit. I know there is good debt and in order to seperate the bad from the good, after consulting with experts and careful consideration of my perculiar situation, I came up with the following criteria:
1 A good debt is one that is economically justifiable, it must be worth it. The advantages must far outweigh the disadvantages. I rarely go into debt for consumables.Anything that can be deferred I defer.
2. A good debt is the one I can work into my normal spending plan. Nobody plans to fail but most people fail to plan. Ultimately failing to plan is planning to fail. You must have a plan for every sector of your life and then you must work your plan!
3. A good debt is the one I am able to pay based on my present financial condition and not my anticipated future earnings. You may call it pessimism but that's the best way to handle issues of debt. If you avoid this rule then you will have to contend with Murphy's law.
4. A good debt is the one that doesn't tie up my investment potential. If it does this this more or less means that my future growth is being tied up.
So you have it, I believe if you follow these simple rules as I do, you will keep your credit card debts ( infact all debts ) to the barest minimum and manageable levels. See you at the next posts
