3 Items to Avoid Purchasing with a Credit Card

Using a credit card can be convenient. With a credit card, you just pull it out, swipe it and you are ready to go. You have an easy way to keep track of your purchases and the whole thing is very simple. However, this simplicity is not always good for your financial situation. The easier it is to rack up debt, the more likely you are to do so. Buying things that they shouldn't on credit cards is how a lot of people get in over their heads with debt. There are good times to use a credit card and there are very bad times to use them.

1. Groceries

Groceries are a basic necessity to live. When you are putting groceries on your credit card, you are in over your head. Groceries are something that should be figured into your monthly budget. If you do not even make enough to buy groceries, then you need to step back and evaluate your living situation. Find ways to cut back on other things. You might need to downsize your house, eliminate a car, or take other drastic measures. If you pay for groceries on credit once, it's not that big of a deal. If you are doing it month after month, then you will be deep in debt in no time. When you run out of room on your credit card, something is going to have to change. Using your credit card is just delaying the inevitable.

2. Entertainment

Many people will go out and entertain themselves on a weekly basis and just charge it on their credit cards. They go to the movies, get popcorn and a soda, and then just put it on their credit card. If you do not have the money to pay for entertainment costs, then you should just stay at home. Entertainment is not a necessity to live. When you are financially strapped, you should not perpetuate the problem by living above your means, and pay for it with a credit card. When you do not have the money, do not spend it on entertainment expenses. Many people have got themselves in trouble with this problem.

3. Things You Can Not Afford

Many people get in the habit of purchasing things with a credit card that they cannot afford. They see that they have a $5000 credit limit and go out and buy $5000 worth of goods and services. If you are living paycheck to paycheck, then you will not have the money to pay back the debt. You will have to just make the minimum payment and it will take many years to pay back that money. That $5000 dollars could end up costing you anywhere between $15,000 to $20,000. If you cannot afford it, do not put it on your credit card. 

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