2. A credit card should only be used as a convenience to pay if you have no cash on you, knowing that you can pay off balance before interest charges kick in. Many cards have an interest free period. Never use credit cards as a loan beyond that free period. Others do, but you have no need to. You can eliminate that idea altogether. You are creating a new habit that will enhance your financial situation, and resisting an old common habit that would ultimately damage your finances.

3. Plan all your borrowing. Sit down and write down what you absolutely must buy over next year, and add what you would like to buy. Total cost. Write down a budget for each month, making sure you have listed all your regular expenses that are fixed and unavoidable, and those over which there is some flexibility. Compare that total with your income. If you have a surplus, then you can think about those extra purchases you had in mind. If not, don’t think any more about them. You cannot afford them, and cannot afford to borrow.

If you have a planned surplus, then maybe you can get those things you wanted. If you can afford all of them, and there are quite a few items on your list, then forget about getting a loan. Be patient, resist have now pay later syndrome. You can save interest and buy a bonus item with that later if you really must. You are in a great position to pay cash. Prioritize things you want to buy, and note their cost, and then work out a plan by which you buy one item at a time spread throughout year. Why pay banks credit, when you can pay cash? You will save not just interest but maybe get cash discounts. Cash gives you control. With credit you are subservient.

If, on other hand, there are just one or two more expensive items you want to buy, it is time to compare options and test your resolve. If you save your surplus each month, consider how long it will take to have enough for item 1 and maybe item 2. Are they really urgent? Probably not. Maybe you can save for one after 4 months and 2 after 9 months. That way you are getting into habit of saving, and living off cash. Cash is king. Your finances will start to look good over time, and you’ll start to feel proud of yourself. You will feel in control.

Remember too that by saving, if an emergency comes up, you may have cash at hand instead of reaching for that expensive credit card.

You really cannot wait and save? That is a pity, but now check out all loan sources suitable for your intended purchases. Get best plan, best interest rates, and apply, with intention of using that loan just for what it is intended, and to pay it off within time scale of spending plan. In example one year. Stick to that discipline, and your credit is still under your control. And, you have avoided reliance on expensive credit cards.

4. Remind yourself every day that you are only going to use your credit card when you have no cash on you, as a convenience, and you will repay it before interest starts to accrue.

5. Also remind yourself every day that sometimes it is good, or even necessary, to be that bit different, and to resist social pressures. Imagine all credit card lemmings heading towards precipice, while you relax in your counting house, counting out your money. Real money; your assets. Anyway, it’s great sometimes to be different, it really does make you feel good about yourself.

6. Never, ever feel you have to buy something just because a neighbour or friend has been boasting about theirs. Envy and jealousy are viruses that minimize your individuality, and can, in this case, damage your finances.

Resisting pressures of credit card society will be a lot easier once you have set your mind to it, and started to feel benefits. Enjoy process, and you will be a cash convert for rest of your affluent life.

You can also monitor your credit for signs of identity theft. More than 10 million cases of identity theft were reported to FTC last year alone! (For steps on how to prevent ID theft, see free e-book offer at end of this article).

2) How do I check my credit report for FREE?

The FACT Act required three major credit reporting agencies to set up an internet site where consumers can request their reports at no charge annually. That site is