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Hi my name is Lawrence and I am on my way to become a 100% debt free man. On this site I will share with you my experience of debt enslavement and how I systematically cleared my debt one by one. If I can do it then you can do it also. It does not matter in what financial situation you find yourself in. You can clear all of your debt and live a debt free lifestyle. .
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Category Blog Credit Card Debt - Understanding the Credit System
| Credit Card Debt - Understanding the Credit System |
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| Written by Lawrence | |||
| Saturday, 12 December 2009 06:23 | |||
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It is important to understand what credit is and how it works. If you know this then you will be able to use it to your benefit.
Credit is basically used if you don’t have cash on hand. So credit can be used to buy something that you can’t afford at present or you don’t want to use your own money or cash. You are willing to pay off the loan over an agreed period of time with a creditor(s).
Credit is not physical or tangible, but is a very valuable tool to acquire something that you want now, but can’t afford. Credit is based on trust between you and a creditor. It is a belief that institutions or people have with you that you can be trusted to repay your loans or credit. If you can prove to a lender that the money that you will loan will be repaid on time and over the agreed period. Basically can you be trusted to keep your promise to repay your loan(s). Credit can be used to buy things that you can’t afford now in cash e.g. car, house, holiday, clothes, education etc. Credit allows you not to walk around with large sums of cash on you. It is much safer and convenient to use a plastic credit card. Buying stuff on credit can help you with your budgeting, because you will know exactly how much your monthly repayments are.
A bank loan - e.g. a personal loan that you repay on agreed term or time Credit can be very helpful, but can also be problem especially if don’t know how to handle and manage credit and debt.
It is definitely possible for you to clear all of your debt. I will share with you my personal experiences of how to strategically clear all of your debt. Read all the articles on the site and you will be on your way to become a 100% debt free man / debt free child / debt free teenager / debt free woman If I can do it then you can do it also. Enjoy :) |
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| Last Updated on Sunday, 13 December 2009 10:26 |
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