Credit. How to Avoid the Credit Trap | Mint.com Blog | Personal Finance News & Advice. As the US struggles with one of its deepest recessions since the 1930s, credit is on everyone’s mind. Mounting layoffs, declining benefits, and depressed assets are leaving people without steady streams of income and forcing them to question how they will pay their bills. Paying by credit card has lost its appeal as consumers worry about getting caught up in a downward spiral of debt. But credit cards aren’t evil in and of themselves. Used responsibly they can become an important spending tool that can also pay you back. Before you can begin putting credit cards to work for you, you should understand that they can be seductive. Spending money is easier with a credit card than with cash because you don’t feel like you’re spending money. While it easier to spend money you don’t have with a credit card, there are real benefits to owning one.
You have electronic records of your spending month to month. Step 1: Pay Down Existing Debt-Start Yesterday Step 3: Get Rewards for What You Spend. Debt-Proof Living Home. Financial Crisis, Housing Crisis, Recession, Budget Crisis, What It Means to Your Financial Planning | Personal Finance Blog, Online Money Management, Budget Planner and Financial Planning - Mint.com.