We just got a new client debtdonkeys.com. I’m not going to link it because it’s not done but I’ve learned so much from this client I can’t help but make some comments.
I’m not in debt and never have been because I don’t like the credit card companies or really anybody who wants to charge me interest on my money. The only loan I’ve ever had was when I was 21 and “had” to have a 300zx (does that date me?).
I’ve always wondered why my credit score wasn’t higher because I’m completely debt free and make a reasonable salary so why the hell should my credit score be low? Right? I find out it’s because I’m not in debt! Did you know the credit agencies rank you higher if you don’t make your payments exactly on time and you carry a debt balance? Yup that’s right they know they can make money off of you so they will give you a bigger credit limit.
It really sickens me to think that the credit companies have that much power over most of America, if you’re not in bed with them you don’t count and if you are in bed with them you have a high credit score but you are paying an average of 17% of your income for it.
so here is my guide to living debt free.
- Don’t buy it if you don’t have the money in your pocket (or bank account). This goes for cars, boats, houses (I rent), clothes, gas, cable, furniture, computers, etc, etc, etc.
- Be patient I finally bought a used (new to me) car 3 months ago that I expect to get another 150,000 miles out of but I drove a used Lexus into the ground (smoking, rattling, and chugging) before I could afford the $3000.00 cash to get this one. I drove the old one to business meetings, school, the grocery store, whatever and if someone commented on it I’d ask “so what are your monthly payments?”
- Value your money. One of the worst things that credit has done to this country is devalued your currency. I’m not talking about the value of a dollar vs the euro I’m talking about how you personally see a dollar. A dollar with credit is only worth $0.71 without credit it’s worth $1.00 and maybe even $1.28 if you consider that everyone else dollar is only worth $0.71 because they are maxed out with credit card fees.
- Don’t take stupid deals because it’s easy. The days of kicking tires seems to be over, stop buying things just because someone tells you it’s a good deal and offers you 0% financing for a year. Check prices and buy carefully, and used with cash if you can.
- Live without a high credit score. Screw them, you don’t need their little badge of credibility. I’m proud of my null credit score because I got it by being smart with my money, frugal with my purchases, and honest with myself.
I have tons more to say but not enough time and this really doesn’t fit my blog content. I hope it helps a few. Good luck