Saturday, February 04, 2006

credit is debt not money

That's another thing I learned at the EAP workshop.

Some people have $4000 credit available ona credit card and they think that means they have $4000 to spend. They don't.

If you "spend" credit it is a debt that must be repaid.

So if something costs $7 and you don't have $7 cash then you use your credit card to purchase it you not only don't have $7 but you are now in debt for $7 plus interest.

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