Life in Balance and Credit

Credit cards: just think how many problems they cause! Why cannot we live without plastics?! Of course, they let us buy lots of things we want and pay the purchases later, but it’s a trap. Credit is a rat race! Just think, you spend years to establish good credit. You do your best to become eligible for a rewards plastic. And then one day you realize that in the pursuit of rewards, you have made overdraft that is going to affect your credit. All you can do is to take a chance to pay the debt and apply for a balance transfer card. But it turns out that  balance transfer cards are not so easy to obtain, they also demand high credit rating.  And what shall you do? How to get out of debt?

I had a dinner with my relatives yesterday. Everything was as usual till Jane, my 12-year old niece asked me: How to establish credit and not to get into debt? Well, the answer seems to be easy at the first sight: just obtain a credit card and use it wisely. Then Jane asked what means to use credit card wisely. Everyone started to name different things. The rules seemed to be innumerous. So, Jane said that it is too difficult and an ordinary person will never be able to remember all these tips.
So, we decided to browse the Internet to find out how to build credit and not to get into mess.
Here are the main 4 tips:
• Pay all you bills on time and in full every months.
• Never exceed credit limit.
• Do not buy on your plastic more things that you need. Keep track of your spendings.
• Do not hold lots of credit cards. Every credit card means debt. The more credit cards you have the more you owe credit companies.
Jane thinks these tips are easy enough and following these rules everyone can establish good credit without any problems. Do you agree?