You can Survive Without Credit
This is very common now believe that to survive you must use a credit, but that is not true.
What do you think the person is to survive before the invention of credit cards? Back in early 1950 the Diners Club card is the first credit card developed, and it was not until decades later that the use of credit cards that they become pandemic today.
Use your credit card will remain in a state of mind of the poor and will not make you rich. The problem people run into with credit cards and credit in general is that many people really do not know how they work: you borrow money with the purpose of immediately paying back debt, but to fall in the trap for the payment of the fall further behind and even quadruple the three original purchase price of the goods issues a credit in the first place.
So how do you live without credit?
1.) Obtaining a debit card. A credit history is not necessary, and with the one you can not spend more than you have.
2.) Do you need a car? Pay cash. Unless you have a 7-figure the cash you can not buy a new car. New car lost 60% of the value in the first 4 years. Since most people can not afford that type of loss, you should consider a used vehicle. Pay with cash, and do not have a car payment you can take your money will be saved in the monthly payment and savings to build in front of the vehicle.
3.) As part of the budget, which sets the number of weekly devoted to lunch, gas, entertainment, and others do not exceed it.
4.) Want to buy a new home? You can not buy a house without a down payment at least 20%. If you can not afford that, then you should consider renting instead. Buying new while not financially fit can be a curse rather than blessing. You should strive to have a house payment is not more than 25% of your home will pay. Many people today face foreclosure because they buy in the hype of the “no money down”, the sub-prime mortgage mess and buy more house than they could afford. Do not make that mistake.
5.) You may need a credit history to buy a two-year mobile phone contract plans. If you have bad credit, or you do not have the cash you need to choose to pay-as-you-go option. There are many affordable plans to choose from these days, and in many cases this plan start at $ 40 – $ 50 per month with unlimited range minute.
