Finance Roll

If you are in tune with the daily news, or if you watch TV regularly, you might see different advertisements of financing and loaning companies claiming to be the savior for people with credit problems. Bad credit might come from incurred debts, unpaid loans, and many other financial crises that you should not have to experience. In fact, with a lot of practice, prudence, and good sense, bad credit does not have to be your problem.

In the distant past, people were considered gentlemanly or virtuous if they stayed out of debt or the debtor's prison. People who paid their bills on time, hardly took out loans, and had the power to lend money were considered to be stable people who had a lot to bring to the table, not only in terms of finances, but in terms of other good personality traits as well. Today, however, people who have the most number of credit cards are often regarded as rich, and a platinum card holder - essentially a person incurring debts through a piece of plastic - is seen as a prime catch for the ladies, a woman who is independent, or someone who simply has money to burn.

Sadly, credit cards can also mislead us into thinking that we are not spending anything, which can be problematic if we often take the swiping for granted. Small amounts swiped will eventually build up and make even higher, larger, more massive amounts; and these higher, larger, more massive amounts will eventually lead you into debt if you are not careful. If you do not want to have any problems with bad credit, start with the root of all bad spending: the credit card. True, it can be difficult, not to mention dangerous, to carry cash around, but if you carry only a little cash, you will not only be forced to spend less, you can also avoid having to carry a credit card.

If you live in a tough and dangerous neighborhood and a credit card is the only way that you can buy anything at all, then make sure that you have only one credit card; you can have two at the most, with the other one acting as your backup. The more credit cards you have, the harder it will be for you to monitor your finances, and the more difficult it will be for you to keep track of your payments by the time payment time rolls along. If you limit yourself to one or two credit cards, you can have an easier time monitoring and limiting your spending. This should put a hold on your potential shopping sprees, and it should allow you to exercise prudence and discipline when making your purchases.

Living within your means is a motto that is easy to say, but hard to do. When you see something that you absolutely like, you might be tempted to get it, not sure if it will be on sale, or if it will still be there by next week or next month. However, is this something a something that you absolutely need? Is it a nice dress that you know you will wear more than twice or thrice? Is it a pair of shoes that is not trendy, but still useful for a lot of your work? Before making any purchases, weigh all possibilities carefully, and if you must pay with your credit card, make sure that you pay your debts on time. Bad credit will not be your problem if you keep yourself free from debt.

Lastly, always keep some money saved from your salary or wages. Set a certain amount of your salary that you will keep each month, say twenty percent, or forty percent, depending on your needs. Keep this amount in another bank account if you can, and do not touch it unless you absolutely need it. This way, you discipline yourself in your purchases, and you limit the amount of money that you can spend.

These are only a few ways by which you can avoid getting into debt and damaging your credit rating. Bad credit should not be a problem for you if you spend wisely and live within a budget. If you know how to budget your money, you can still buy the things you want and live comfortably, and perhaps have a lot of money set aside for living even better in the future.