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Let’s get real and tell the naked truth. You with me? I want to ask you something. Tell the truth, okay?
How many credit cards do you have? Not sure?
Go count them. In the meantime, let me share a story with you.
When I was 24 years old, I received an envelope in the mail. I was so excited. I ripped it open, and there she was… my first credit card. I was peacock proud. I was the first to have one. I don’t know if I read the not-so-fine print. All I knew was that I could buy things on credit.
Fast-forward eight years and I’m in credit card debt. Unable to pay my balances and dodging the bill collectors’ phone calls—that was a feat, because then there was no caller ID.
I eventually closed my accounts and could have been on the road to financial freedom. But no. After paying off my debt, I created credit card debt again. The choices I made impacted and influenced my FICO score, the interest rate on my car and mortgage debt.
I did gain an understanding of credit, the difference between good and bad credit. Today I do most of my transactions with cash and a debit card.
5 Tips to Remove the Obstacles
- Cash is still king. I had you count your credit cards to see just how many you have. Now add up the interest rate on each card. Later in life I reprogrammed myself and my clients to recognize that using credit is another way of saying to yourself, “I don’t have the cash.”
- Save your heart. The stress and struggle of juggling the payments vs. the interest rate has a far greater effect on your spirit, your heart, and your relationships than the fleeting satisfaction of a purchase. Especially when you look over your life and what you have to show for the stress, arguing, and strain on your relationship, at the very least.
- Get strategic about credit. There is good credit (mortgage, car loan) and then there is bad credit (clothes, purses, technology). Know the difference.
- It’s a privilege. Credit is really someone else’s money that they are allowing you to use on a temporary basis.
- Know your goal. What is your financial goal? 10k or 100k in your savings account or revenue for your business? Is the dance with credit, buying items for temporary fulfillment, really aligned with the life you want to create?
So, I have a wonderful and yummy call to action for you today.
Look at your credit card statements, find the one with the highest interest rate, and cut it up. Yes, cut it! I know this makes you afraid and nervous. But I want you to be aware that you’re dependent on something that’s not going to help you.
Remember, the truth is that when you use credit, you are literally using someone else’s money, and they are charging you a fee to use it. It would be more cost-effective and move you closer to your goal of financial freedom to simply say to yourself regarding whatever it is, “This is not in my budget right now.”
Now, call the credit card company and make arrangements to pay the balance down until you can pay it off completely. Now, you know what you just did?
You’ve removed one obstacle to your financial freedom!
Want more tips, strategies, and solutions to gain your financial freedom sooner, quicker, and faster?
I invite you to join me on FB in my Money and Wealth Mastery group. https://www.facebook.com/groups/1507782519507749/ and connect with
Rev. Jenenne Macklin at www.spiritandriches.com.