so when you try to budget as a consumer
you know obviously if we all had our druthers we pay cash for everything we
would never need credit for anything that’s not realistic for most people
note seven out of ten americans live pay check to pay check which means
they’re probably living credit card a credit card as well we had never had we had a nice job we’ve made nice money
and we say well forrest if i can get a credit card if i
qualify so we we’ve filled out a appeals a
mastercard and we both ended up with uh… those
credit cards and the instrument sears jcpenney you know you just wanted to see
if you could actually get ’em nate maybe not intentionally intending to use them like that but they weren’t you find out how easy
if yes you know you have cash in your pocket
you’ve got the credit card cash vs and well maybe i won’t spend all my money obviously this card this time it and i’ll save my money you know it and uh… it’s easy to get into that’s
how we did it and i ended up i had like twelve credit
card in our next them all buy-in as you know humane you have to know that you have to have a
minimum eat the monthly payments are going to have on your credit card is if you don’t do that here in new york
the epa late payment involved order over limit fee or a default fee or some other
fee associate with that you don’t want that to happen that’s just not good so
rule number one is don’t ever charged anymore than you know that you can make
the minimum monthly payment i would never suggest you make the
minimum monthly payment because if you do that litigate underwater real fast and if you look at the credit card that
has a two thousand dollar balance on it and let’s say that you’re at the maximum monthly minimum payment is fifty dollars
well i assure you that it’s occurring more than that interest and interest so
by simply paying off the principle not on that not paying off the interest on
that living underwater pretty quickly so from the budget perspective unique thing
ok how come they come in the monthly payment and cover the interest need to
do that at least every month that way you atleast think even naturally you
want to try to pay higher than that because in your knee pain down the
principal amount of credit card which means you could eventually pan off