One Personal Finance Tip President Dan Smith Never Breaks

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New Era Debt Solutions is a company that strives to help people get free from the overwhelming pressures brought on by excessive debt. We offer personal finance tips and ways to control spending, but this time we’re stepping into the President’s office. We asked New Era President Dan Smith for a personal finance tip he never breaks and here’s what he told us.

One tip he has tried to live by his whole life: “If possible – NEVER pay a dime in credit card interest EVER!” He thinks that credit cards are great and wonderful if you can use them instead of letting them use you. He also said that the best thing you can do is to pay them off in full every month. Kudos, Mr. President! It’s no secret that credit card debt is one of the main culprits dragging people’s finances downhill. We’re almost always talking about this type of unsecured debt.

The statistics are pretty surprising. NerdWallet reports, “The average U.S. household with debt carries $15,675 in credit card debt and $132,158 in total debt.” That’s a lot of money, but there are ways to be proactive and prevent yourself from getting into debt from credit cards in the first place.

We agree with Dan. Credit cards can end up using you instead of the other way around. There’s nothing worse than losing control of your credit card spending and allowing it to take over your life. You may be wondering how you can manage to pay off your credit cards in full every month if you already can’t afford the charges on them. The trick to paying off your credit cards is to use them sparingly and with a budget in mind. Your credit cards should not be used every time you make a purchase. That piece of plastic can do serious damage and high interest rates can make them almost impossible to pay off.

Some people have the mindset that they can use their credit card to borrow money and pay it back later when they do have the money. But wait, isn’t that what credit cards are for? Well, yes, but we think that’s the wrong mindset to have, especially if you are an impulse spender. Treat your credit cards as if they were your debit card. Only swipe if you know you have the available funds and can afford it at that moment. We don’t recommend buying something before you receive your paycheck. Premature spending can only lead you closer and closer to paying credit card companies interest, which is exactly what they want.

Beat the system. Credit cards want you to pay interest because that’s how they increase profit. Don’t give them the opportunity to take advantage of you, and make sure to practice a healthy level of self-control with your spending. If you’re looking to build your credit – a process that takes time – it’s unwise to open as many credit cards as you can. Having fewer credit cards can lessen your chances of overspending.

Do you have a great personal finance tip? We’d love to hear it! You can share your tips with us on Facebook. If you need help and have found yourself overwhelmed by debt, we are here to help. Call us for a free consultation so we can get you on the road to financial freedom and find a plan that works for you.