Don't Borrow to Cover Daily Living Expenses

Yesterday we discussed not kiting your credit cards, meaning don’t use a cash advance on one credit card to make the minimum payment on another.

Today’s tip: don’t borrow on your credit cards to cover daily living expenses.  There is nothing wrong with using your credit card to pay for gas for your car each week, provided you pay your balance in full at the end of each month.  The problem occurs when you don’t pay your credit card balance in full each month.  In that case you are borrowing to pay your monthly living expenses, and that’s very dangerous.

A better solution is to prepare a monthly budget and look for ways to cut expenses, so that you don’t have to spend more than you bring in each month.

If you are short each month because of your debt payments, research ways to pay off your debt.

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