Wealth-Coaching

Credit cards, no matter how much they say they love you, are in business for their gain, not yours.  Managing credit card debt is an oxymoron for most credit card holders.  In order to truly take control of debt you need to change your focus on spending and turn it to building wealth.

It’s inevitable, the new toy, car, or just about anything you can imagine comes along, we have to have it!  The payment seems affordable but the fees and interest can result in paying three times the purchase price over several years.

Avoiding debt is not easy today.  However, with some focus and a few changes in spending you could find debt reduced and wealth being built in no time.

When considering a purchase, wait; don’t buy right away.  By waiting you will train yourself to put off the ‘got to have it’ feeling and actually make better  buying decisions.  Take a few days to think about the purchase and ask yourself a few questions:

1. Do I really NEED this item or do I really WANT this item?

Discovering your motivation for an item will tell you a lot about your spending style and habits.  IF you need it, then resolve to planning to purchase it.  If you just WANT it, then resolve to wait and make plans to reward yourself at a later time.

2.  If I NEED it, when do I need it?

Even if it is a need, can it wait?  Spending can create a whole lot of problems if not kept under control, so even on essentials, be wise.

3.  How am I going to pay for this item?

Once you decide on a purchase and a time frame for buying the item, as yourself if  you have the money in the bank to pay cash.  If you don’t have it, then the questions need to restart… going into debt should be your last resort.

money is the best way to buy.  By making a plan or strategy for buying you will actually make a plan and strategy for building wealth.  Consider your time frame and then put up a little money each week in an envelope until your fund is complete.  Then buy the item without going into debt.

Another option for purchasing is using a layaway option.  Most stores and retailers have this option and require a small 10% deposit and then give you from one month to one year to ‘pay’ the layaway out.  This option allows you to wait, stay out of debt, and pay cash all at the same time.

Whatever method of purchasing you choose please consider all options before going into debt on a credit card.