There are many people out there who have been trying to figure out how to get by. There are so many things that you need to take care of that, at times, you have to try and stay ahead and keep up with whatever you are going with. But, when you’re dealing with credit and debt, you may be trying to figure out whether or not it’s worth your while.
Some people out there will actually try to live off of their credit. Why? Because they don’t feel like there is any other way. Is this a way to do this, however? Can you actually live off of your credit? The answer is no there is no way to live off of your credit in an effective manner and not get yourself into a pickle. Here are some of the main reasons that you can’t do so.
It’s not really money. I know that people think that credit is money. It’s not. It’s credit. It’s basically making the credit card company pay for something of yours, and then you having an IOU to them, with interest. The only money that’s actually interchanged is what you pay the company to cover your bill. That is going to make things more difficult and ensure that, in the long run, you aren’t going to be able to get out of that debt easily.
It’ll kill your credit score. If you try to live off of your credit, then you have a high chance of maxing out your cards, which, in turn, hurts your credit score. You also may have a more difficult time making payments if you’re in a large amount of debt across several cards or loans.
You’re paying more in the long run. Interest stinks on cards. There are some cards out there that are up to 30% or more interest. That’s not a good thing! You could end up paying up to three times as much as the initial cost of an item, depending on how long it takes you to pay off your card.
It starts bad habits you may not be able to break. It’s hard to teach an old dog new tricks. The same friend that told me that said we sometimes live off of our credit. But, if you’re in the habit of whipping out your card instead of paying with the cash in your wallet, are you going to be able to change that easily? Maybe you will, but maybe you won’t, and you don’t want to get into that cycle.
Living off credit is one of the biggest reasons that the American economy has been struggling. People rotate their credit, never pay it off, and go into bankruptcy. Is it because of this mindset that we need to live at a certain standard, and to be at that standard, we need to use credit? Or, is it because of the ‘American Dream,’ where we get whatever we want no matter how we have to get it?