Post holiday shopping I think we all need to take a deep breath and lock up our credit cards!

2017 New Year’s resolutions are IN. Forget the fad-ish diets…

Let’s get really real for a second here. Resolutions for things we really need.

SO… take some advice from someone with a little experience on the subject. 🙂

ME.

Who really likes credit cards?

Really?

I mean really?

Let’s face it, most are a pain in the butt. They look great on paper. You get this new, shiny piece of plastic with a ginormous credit line to spend and maybe, just maybe, several cards and several spending limits! With one swipe or chip insertion nowadays, you can buy that brand new Versace dress. With two swipes, those Jimmy Choo shoes you SO have to have for this season are now yours to wear with your dress. By swipe four or five, you’ve got a red carpet outfit, tons of points and all of those anti wrinkle creams your skin so desperately needs.

Great, right?

Oh yeah, we forgot a slight detail: you didn’t pay cash and the monthly statement hasn’t yet arrived.

UGH.

A nightmare come true. When I was younger, I knew people who ran into credit card trouble, you would think I’d have learned my lesson from their mistakes. NOPE. Clearly I had to figure it out for myself.

Every card should come with a warning label: Beware spending is easy, paying everything back is nearly impossible. 

I’ll make my story short. After college, I got my real estate license and started selling houses. I even managed to save enough money to head to Europe for the summer (cash in hand). Italy, Austria, Greece, Hungary. Sounds like a dream no? I met some amazing friends and before I knew it, I was flying to Mexico City first class, then to Turkey for a 3 week Christmas holiday. I put everything on 4 different credit cards. I juggled payments. I bought 6 rugs from the awesome Caravana rug store we visited in Konya. I skied the French Alps. I brought my family back gifts from everywhere I went.

I came home fully expecting to pay off my debt and fast. But then the market tanked in 2008. Yep, remember that? Plus, I started building my new career as a professional ballroom dancer. That meant more credit card spending to pay for my competitions, travel, regular lessons, and coaching fees.

Lucky for me my professional dancing became a reality, yay!

The icky part?

I came out of this experience owing $$$ in credit card debt. The interest was killer and I don’t even want to think about what I actually paid in monthly interest fees.

A few years later, after hours and hours of hard work, sweat and miles on my car, I am extremely happy to say I am now credit card debt free. I would like to give everyone one piece of advice:

When they mail you one of those “you’ve earned a credit line of up to…” letters, rip it up into tiny pieces and throw it away as quickly as you can. Better yet, BURN IT.

Don’t get me wrong. I pay for everything I can with my credit card. I want all of the miles and travel points I can get! Shoot, I’d pay for a car with my credit card if the card company would let me (LOL they’re too smart for this trick). But, almost immediately following each transaction, I transfer my cash onto my card and clear the balance. You don’t need to do this right away like me, but I’m sooo OCD I just can’t help myself.

I also don’t want you to think you can’t use a credit card and take a few months to pay it back. We’ve ALL been there. Whether we have a slow month at work, a medical emergency or are starting a new business, it’s important to have and use our credit card.

If you’ve dreamed of traveling to Africa your entire life and this is your only opportunity, by all means use it. Just know the consequences of owing a balance when you return. Understand that the interest these days is increasing, and have a plan to pay it back as quickly and efficiently as possible. Without you losing sleep over it.

MY ADVICE FOR CHOOSING AND USING A CREDIT CARD:

1. Choose a card that you can get the most out of. What do you love? Shopping or dining rewards? Airline miles? Pick the card right for you that will best help you and your mode de vie lifestyle out.

2. Stick to 2 credit cards maximum. This is incase one doesn’t work… it’s like having a spare tire when one of your four suffers a blowout.

3. Keep the credit line reasonable. Don’t be suckered into a card that gives you a $50,000 credit limit unless you know you can pay it back right away.

4. Link your bank account to your credit card for a no excuse, easy-to-make-your monthly payment program.

5. ALWAYS MAKE YOUR PAYMENTS ON TIME. The late fees start at $30… you don’t need more debt simply because you forgot to make the payment.

6. Pick a card with the lowest APR possible. Do your research. If you can’t pay off the balance each month, a high APR card like AMEX probably isn’t for you.

7. Every time you spend, think about putting the equivalent amount into your savings account. You might think twice before completing your purchase.

8. Ask yourself: Do I really need this? Can I live without it? Will my life be ruined if I can’t have this? If so, by all means, charge it. If not, go out and work hard, save harder and then go buy what your heart desires.

I wish I had made this list years ago and stuck to it! It would have saved me a lot of stress and monthly interest charges!

Life is about BALANCE and credit cards are no different. Weigh the odds, decide what you want, how to save or work hard for it, and then go get it!

xx Shanna

 

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