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ian@huth · 13-03-2004, 01:27

Credit cards are essential if you want to manage your money and get security with your purchases, but you have to know how to use them properly.

I have a rule that we don't buy anything unless we can afford to pay cash for it, usually cash means putting it on the credit card and paying off the bill in full by direct debit. Sometimes we use hard cash if we get a better price by doing so.

What we do is budget for what we are going to spend in the future. Nearly everything you own needs replacing at some time. What we do is work out how long we think something, say a fridge, will last and work out how much a month we have to save to make sure that we have the cash to buy a replacement when the time comes. We tend to under estimate the life of most things so we are covered in case of early failure. This money we put in a savings plan so that it is earning interest. Doing this we are never in the position of a major item failing and we haven't got the cash for a replacement.

13-03-2004, 01:27	#14
ian@huth Inactive Join Date: Jun 2003 Location: Huthwaite, Nottinghamshire Services: VM 10Mb, TU, 1xSky HD, 2xSky+ (HD,all packs, sports & movies) 2xDVD PVR's, Freesat Freeview & other Posts: 4,536	Re: Credit Mad Britain Credit cards are essential if you want to manage your money and get security with your purchases, but you have to know how to use them properly. I have a rule that we don't buy anything unless we can afford to pay cash for it, usually cash means putting it on the credit card and paying off the bill in full by direct debit. Sometimes we use hard cash if we get a better price by doing so. What we do is budget for what we are going to spend in the future. Nearly everything you own needs replacing at some time. What we do is work out how long we think something, say a fridge, will last and work out how much a month we have to save to make sure that we have the cash to buy a replacement when the time comes. We tend to under estimate the life of most things so we are covered in case of early failure. This money we put in a savings plan so that it is earning interest. Doing this we are never in the position of a major item failing and we haven't got the cash for a replacement.