IS IT TIME TO CUT UP YOUR CREDIT CARD?
Many people still believe that the way to get out of debt is to avoid credit. In fact, some advised that credit cards are debt traps to millions of consumers today, who are enticed by the ease of access to their own personal piggy-bank called American Express, Master Card or Visa.
The problem of credit card debt that many cardholders face lies more in the use or abuse, misuse, of their credit card. This can be traced directly to their lack of financial control and financial education of these card users. So when today's financial expert tells you to ‘get out of debt', ‘cut up your credit card', ‘put your credit card in the freezer', scoff at this advice, because the financially intelligent individuals love the power that their credit card afford them. REMEMBER: BAD FINANCIAL EDUCATION IS THE CAUSE OF POOR FINANCIAL MANAGEMENT - Robert Kiyosaki.
So is debt always bad? Certainly not. It's interesting to note, however, that bad debt decreases your net income but at the same time good debt brings you profit. In other words, good debt makes you rich while bad debt makes you poor. Robert Kiyosaki in his book, the ABC's of getting out of debt, stated, "debt and credit are powerful financial tools that have allowed many in the world to enjoy the highest standard of living in history".
If you want to live a more enriched life; a life by design, then a very important life's lesson to learn is how to minimize your stock of bad debt and responsibly use your good debt advantageously. Always aim to be like the financially intelligent who are using debt to enriched themselves, not like the financial uneducated or irresponsible who are using debt to destroy their lives.