Use Credit Wisely

Being in debt may not be completely avoidable, but amassing tons of payables should be. If you don’t want sleepless nights or legal complications, you have to know how to handle debt well. Before, I used my plastic money for everything we need (groceries, medicine, appliances, clothes, etc). I take advantage of the points I can earn from the card, and the buy now pay later scheme. Until the day came when I had to give up my career to be a full-time housewife, thus our financial crisis begun. My husbands’ income is not enough to cover all our payables. I have to cancel my 3 credit cards and ask the bank for amnesty programs that will help me pay for the outstanding balance in installment. As of today, I am done paying only one of them.

Using credit cards, loans and other types of credit make managing your money easier, and can be especially useful during emergencies. I remember using my credit card when I gave birth to my son and I even got to pay it in installments. But credits are a big responsibility, when used improperly it can disrupt your future cash flow and cause you other problems ( just like what is happening to me now).

If only I’ve been more conscious in handling our expenses before, then maybe I don’t have any debt right now (which we are still struggling to pay). If only I focused in increasing our savings or emergency fund then maybe I wouldn’t used my credit card for unavoidable circumstances. I already learned my lesson; we are trying to pay for all our debt now and we’re hoping that we can no longer have another one.

If your income is not enough to cover all your expenses, you must either cut your expenses or increase your income. You’ll find that it’s usually easier to cut spending. In my case, we avoid going to malls every weekend, since I cannot resist buying things I like especially when it’s on sale. Instead, try having a movie marathon every weekend or go to park with packed lunch. We will try to live within our means and after this financial hardship we can maybe reward ourselves with some out of town vacation.

What ever happens in life we should always remember to live life to the fullest!