How to Avoid Maxing Your Credit Line-Part 1
Controlling Cash Outflows Series
Yesterday, we discussed our intent to help people learn how to control their Cash Outflows. There is no genie in the bottle of the Credit Cave that will fix all of your problems however we will now start to empower you to tackle or prevent credit issues.
As a credit card holder or borrower you never ever want to Max out your credit, your credit lines and not even a single credit card. Having the ability to access a line of credit is extremely valuable and can definitely help you when you need it, however this resource can also be squandered and too often get very good people into a lot of trouble. When you max out your line, your credit rating will go down, your interest rates will go up, you will be more likely to default on payments and get into serious financial trouble and more.
Here are some tips to help you avoid this situation:
- Do not go shopping with your credit card
- Take Cash, Take your check book, take a debit card for your bank account, you can even take your PayPal Card - DO NOT TAKE YOUR CREDIT CARD!
- If you absolutely must take your credit card, do not use it, use something from point 2 above.
- Leave all of your other cards at home, preferably locked up safe in a safe or vault or secure location. If you are not carrying the cards, you will not be able to succumb to temptation.
. . . To be Continued tomorrow!
