Few things in life are free and credit is not one of them
Having access to credit is undoubtedly a key to personal advancement and empowerment. But, if you have a credit facility, treat it with care.
We’ve all walked past a killer pair of winter boots and thought, “I should buy these - they’re a real investment.” But is it really worth spending what money you haven’t yet made and paying something off long after it may have gone out of fashion!?
Having a credit facility is not an invitation to spend wildly and worry about paying it off later, because...worry you will! Is a pair of boots that are supposed to make you happy really worth the financial stress?
Remember that whatever you spend you will end up paying back with interest so even if something was a “must-have” because it was a great bargain you simply couldn’t miss out on; once you calculate the interest, and add it onto the purchase price, you might feel a bit ill realising what you actually paid.
If you’ve done the calculation up front however and are comfortable with the repayments, then certainly, make the purchase. This after all is what the credit facility is for. Just make sure you are disciplined in settling your monthly instalments. A bad credit rating is something really difficult to bounce back from.
A credit facility should be seen as an “emergency back-up” and not as a tool to supplement a lifestyle you cannot afford.
Two golden rules that will help to keep you out of trouble: