When I was starting out in college I, like many other people I'm sure, racked up a few thousand dollars worth of debt that I absolutely couldn't pay. Soon, the interest piled up and I wasn't anywhere near starting to work on paying the principle while the debt kept rising. Thankfully, with some help (and kicks in the pants) from my parents, I managed to pay everything off and cancel the debts.
I now have been debt-free for over seven years and have even started a savings account by following these rules:
- Pay off credit cards as soon as possible.
- Don't have more than one credit card unless absolutely necessary.
- Try to pay for purchases (especially large ones) with cash that I actually have.
The moral of all this is that I learned how to be careful with credit cards and realized how they can potentially be monetary time bombs. Here are some good tips from CNN about good buying habits: