Credit is dangerous. This is a pure and simple fact. So if you do not use it correctly, you will have big problems! First, if this is your first time here I invite you to read deeply into my site. Because you will find far more content and advice than it may seem at first. You want to bookmark this site now to come back for lots more great information when you have more time. J coming to you fresh and live again. Today we will discuss an edgy ground, as we like to. What are some credit pitfalls to avoid?
My Financial Coach and Coach trainer’s sound advice
To begin, we all know that credit is important. This is just plain to see and obvious. Without great credit, a house, a car, loans, and credit cards will not happen. Credit is dangerous. Many do not realize. So, to expand my ability to help and knowledge I took financial coaching classes. I had a mind blowing discussion with my financial coach trainer.
He made such a valid point that I literally face palmed myself. So, not saying I know all by any means, but this rarely happens. He was upset with me for helping people get great credit. I was so confused at first! But, I am doing good! Why upset!? Occasionally grossly ignorant, as in this incident, I did not understand at first. Today I will share some of our conversation, especially what caused my facepalm.
Credit is dangerous. Tell me exactly what you do again?
So, he began with “Tell me exactly what it is you do again please.”
I said, “Sure I do credit repair. I help people who have bad old credit. Because if they are responsible now, and I believe they will use credit properly I assist. My clients typically made credit errors in the past but are doing better now. So, I feel it is my duty to clear out their old bogus debts. This way their new credit character can reflect their responsibility. When I am done my clients are empowered to do whatever they need with credit. I love the happy people coming back. “We got a house! We got a car! Had a crazy bill and put it on the credit card to save us! Thanks, Josh we love you!” Helping others satisfies me greatly. Knowing that I have made people’s lives better is what I live for in life.
“Right, so why would I be mad about that?”
Huh? Mad about that? I do not understand. These people are able to purchase a home, a new car, get credit cards. They are empowered and better able to get ahead in life from my help. “Then what?” Um, well then they are able to get the things they need and want from life more easily. Pretty sure I am bettering people’s lives. Have not had any upset clients at all ever, not even a single one. Everyone is normally happy with me. Sorry, I still do not understand why you are mad at me.
“Ok, so what is the end result?”
Well, after my help they get the home, car, credit cards etc. Whatever they need to do with credit can be done. How is this a bad thing? “What happens after they get those things?” A moment goes by as the gear he inserted in my brain engaged other gears. As all the gears turned together a light bulb went on. I slapped myself in the face hard! So there I was uttering a short string of profanity and then composing an intelligent response. Could not disappoint him, he was far too intelligent and kind. A role model.
I get it now. You are totally right! So I help people get out of debt. That is a great thing. But the end result is actually terrible! Because I am getting them out of debt, only to help them get into even more debt! Here I was thinking I was helping people! But instead, I was only giving them more rope to hang themselves! Have you ever had a moment where you clearly saw the error in your ways? This was mine.
Credit is dangerous. What should I avoid?
So my amazingly intelligent financial coach greatly informed me this day. Yes. Credit is dangerous. I found this true myself. The first time I used my credit I messed up. I did not follow my own advice to only use one card. Instead, I fell deep into a trap using multiple cards trying to ‘float’ an income gap. So I have a dire warning for you. Do your best to avoid any and all credit use! Sure, if you use it correctly credit can be your best friend. But there are far too many pitfalls! Let me be totally blunt honest here. Your best bet is to never use any more credit than you can instantly pay back. Better, not use it at all.
Credit is dangerous. What should I avoid? A summary
To conclude, although credit is important, the income behind it is far more important. It is far too easy to get too much credit. I consider all credit merely rope to hang yourself. Because we have a mortgage, so we have a house. But do we actually own it? No. We strung a big noose of debt and put our head into it. All it takes is a brief payment lapse to be homeless. One tiny slip off that platform is fatal. If you use too much credit or use it irresponsibly it can and will end your life. Most couples fight over debt, it ends many relationships.
Credit is dangerous. What should I avoid? Final thoughts and a conclusion
So I propose we rename credit. Let us give it the fair name it deserves. No more games, no more hiding. Credit IS Debt. It is not a credit card, it is a debt card! If you feel you even need to use credit you have an income and or budget problem, not a credit problem. We all make mistakes. Please avoid as many credit mistakes as possible. Avoid as much debt as possible. Finally, focus on budget and income, not credit. Because in the end, all credit is really only debt hiding under a pretty name to trick you into using it.