Don't Get Trapped with Credit Cards and Loans!

Did your credit card bill arrive already? How many bills do you have?

I have a friend who has credit cards. Her total card balance is AED 20,000. She struggles to pay her bills every month. The purchases of signature bags, shoes, dresses have all accumulated into one big bill.

There is nothing wrong in buying signature brands if you have the excesses. However, if buying means borrowing from your credit card to pay it later, then you are simply spending beyond your means already.

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Banks are chasing her. She realized that she should have managed her finances wisely before taking the splurge in shopping malls.

The cold calls from banks collection agents are downright stressing. You cannot sleep comfortably.

A couple of days ago, I was reading Express, a weekly newspaper here. I flip the pages until an article named “12 dirty tricks UAE banks play” caught my attention.  Reading it made me cringe.

I don’t want to go through the ordeal of these people. I don’t want to feel like a criminal because of unpaid loans.

The time, money and effort wasted on these credit cards and loans issues are just taxing. You’ll feel tired, spent and drained.

Your daily problems should be enough to spend your energy and yet when the collection agent calls, you dried up.

I cannot overemphasize the value of not incurring loans for personal consumption. It’s a trap. And once you are in, you’ll be lucky if you’ll find a way out.

The time that should have been spent to your family, friends, passion, hobby and moments that will help others and humanity are taken away.

Living within the means is the key. Coupled with financial discipline and personal development, you’ll go far in pursuit of your dreams.

Start paying larger chunk of your credit card bills now until it is fully paid.

Once you are clear of debts, throw a party and invite your friends for you have summoned the courage to go out of your comfort zone. Your freedom is back. Your peace of mind is back.

To start arranging your finances, you can read Bo Sanchez’ My Maid Invests In the Stock Market... And Why You Should Too.

Personally, it’s a good read. Bo Sanchez explains financial jargon in plain, simple English.