Stay Outta the Weeds!

One of my first jobs was at a restaurant where the phrase “In-The-Weeds” was said quite often when we were swamped with customers and feeling overwhelmed.

In this story….what I mean by “Stay Outta the Weeds” is stay out of DEBT!!!!

When you are young and beginning to think of establishing credit, it is very tempting to get your hands on a credit card and justify a shopping spree by the need to build credit.

I say don’t touch the things unless you are absolutely sure you can pay the balance off right away.

I started using credit cards for “Emergencies” only. Pretty soon it became an “Emergency” to go to the Outlet Mall to find an outfit for the night-out with the girls-- as if I didn’t have anything else to wear.

It became an emergency to buy tickets to the Bocktober Fest. I mean it was Robert-Earl Keen & Pat Green. Couldn’t miss it. That’s an emergency, right?

Next thing I know I really did have an emergency and needed to buy 4 new tires for my car. Guess how I paid for that-- with my credit card.

Not before long, the “snowball effect” really kicked in and where was I?

IN THE WEEDS!!!!!

I owed way more than I made at my little part-time job at Schlitterbaun. But I was building credit. Ha!

There are other creative ways to build credit. One way to start is to save up $500 in your savings account. Then visit your local A+ Federal Credit Union. Ask for a Member Services Counselor and tell them you’d like to do a “Share-Secured-Loan”. This is where you will borrow against the $500 you’ve saved (using the money as collateral). Your payments will be “fixed” (they can’t skyrocket like a credit card payment can) and you can budget easier. The payment is likely to be a smaller amount because the interest rate (i.e. dividend rate) is a lot lower than that of a credit card.

Make a habit of living within your means. Don’t buy it unless you have the cash for it and you won’t find yourself in the weeds.

- Coach Nikki