<

You Have Less Than You Think

by Shawanda Greene

Post image for You Have Less Than You Think

It’s possible you’ve noticed, but in case you haven’t, let me just say, I really love talking about personal finance. So much so that I volunteer for two organizations as a financial education counselor. This past Saturday, I taught a two-hour course titled Know Your Credit Report. It’s one class in a 5-part series on money management. I normally teach the budgeting class, but I wanted to challenge myself with a different topic that I actually know quite a bit about.

I don’t talk about credit often here at You Have More Than You Think because I’m not a proponent of going into debt. Although I don’t know what I’d do without my dear, sweet, precious American Express Hilton Honors card, I’m fairly averse to borrowing money. Even home mortgages make me uneasy. I use my credit card for reward points, and I pay the balance in full every month to avoid interest charges.

Man, I wish I could tell the class how I really felt about credit. But, screaming DON’T BORROW MONEY, probably didn’t meet the objective of the course. Plus, it’s next to impossible to make a single statement fill a two hour time slot.

Overall, I thought things went pretty well. There were so many topics I didn’t get a chance to cover. I’m looking forward to teaching this class again now that I know what to expect.

It’s not most people’s forte, but I quite enjoy standing in front of a group of people and teaching them how to manage their money. That’s quite an enjoyable experience for me. But you know what I really love? Listening to the experiences of individuals in the class and then talking about their experiences with you.

It’s like gossiping without the evil. The concept brings to mind people who share other people’s business under the guise of genuine concern and then conclude their gossipy rant with, “Child, I was just letting you know so that you can pray for ‘em.” Come on.

Hey, that’s not what I’m doing. Feel free to pray for whoever you want. This blog post is an extension of what I told one of the attendees to her face.

Let’s just call this woman Larissa (pseudonym for anyone who’s financially challenged). After class, we continued our discussion on credit. Larissa was infuriated her bank suspended her home equity line of credit when she defaulted on a Walmart charge card.

Here’s wear Larissa messed up. She’d recently cancelled automatic payment of her Walmart card because she’d paid off the balance. Then, she proceeded to forget to make the minimum payment after she ran the balance back up again for some Christmas presents purchased with her Walmart card. Once her bank got wind of this, they closed her line of credit. If Larissa had paid a few days late, the bank would’ve never known. Creditors wait until you’re at least 30 days past due before they report you to the credit bureaus.

What I’m about to say may infuriate some people. Actually, a colleague recently warned me that (in spite of all my liberal leanings) I’ll be a Republican some day. So here goes.

If you pay any one of your creditors 30 days late, the other creditors should get nervous.

Why are you paying your bills late?

Did you lose your job?

Do you have a drug addiction a gambling addiction a shoe addiction?

Are you caring for a deadbeat husband, child, or sibling?

Are you a deadbeat wife, child or sibling?

You paid Walmart late this month, are you going to pay me late next month?

What is your problem?!

It’s quite possible you just plum forgot to pay your bill for 30 consecutive days.

However, there’s a reason people who pay their bills late are charged higher interest rates. They’re riskier. There’s a greater chance you won’t pay your bills at all if you’re paying them late. Such behavior is, generally, indicative of poor money management.

Maybe you’re an exception, but the bank ain’t trying to get to know you personally. They’re looking for a pattern of behavior that’s consistent with someone who doesn’t pay their bills.

Back to Larissa and her outrage. She made the point that she always paid her bank on time so they shouldn’t worry about what’s going on with Walmart. I know Larissa certainly didn’t feel like her bank did her any favors, but the other alternative to dealing with the Walmart default situation would’ve been to raise the interest rate on her home equity line of credit.

Be grateful you got shut down, Larissa.

So here’s where the aptly name blog post title comes from. One of the last things I remember Larissa saying was that she was hoping to use the home equity line of credit to get some work done on her house. She slipped up and said the bank refused her access to HER money.

After minutes of listening to Larissa wax on about the injustice of it all, I had to interrupt.

“Larissa, it’s NOT your money.”

Then I told her how I really felt about credit.

The title of this blog post was inspired (actually, it was spoon fed to me) by Fin Egnr at Engineer Your Finances. I like it better than the original title: “Credit – It’s Nacho Money, Fool.”

Like what you read?
If so, enter your name and email in the form below to receive exclusive, weekly wealth building tips, and get a FREE COPY of my eBook, Curb Your Consumerism: 75 Secret Strategies to Waste Less, Live Well, and Save More Money.
Subscribe
Free copy of Curb Your Consumerism: 75 Secret Strategies to Waste Less, Live Well, and Save More Money
Exclusive wealth building tips delivered directly to your inbox
We will NEVER send you spam
Enter your name and email below to get INSTANT ACCESS to my free eBook and weekly newsletter!

{ 78 comments… read them below or add one }

sewamobil January 5, 2016 at 6:01 PM

If you would like to take a good deal from this piece of writing then you have to apply such strategies
to your won blog.
sewamobil recently posted..sewamobilMy Profile

Reply

Horacio January 16, 2016 at 10:02 PM

Wow! After all I got a web site from where I can genuinely take helpful information concerning my study and
knowledge.
Horacio recently posted..HoracioMy Profile

Reply

Edythe January 16, 2016 at 10:38 PM

Hi there, everything is going nicely here and ofcourse every one is sharing
information, that’s actually fine, keep up writing.
Edythe recently posted..EdytheMy Profile

Reply

Ulrich January 17, 2016 at 6:26 PM

If this Fundie God is real, then Im screwed and can end up in hell and
billions of others will endure the same destiny.
Ulrich recently posted..UlrichMy Profile

Reply

aktuelle Kinofilme ansehen January 18, 2016 at 11:55 PM

Sehr gut geschriebener Artikel! Ich schaue mir sehr gerne Videos
Online an. Vorallem liebe ich Amazon Prime Video.
aktuelle Kinofilme ansehen recently posted..aktuelle Kinofilme ansehenMy Profile

Reply

eia firms in kampala January 23, 2016 at 3:56 PM

Thanks for the good writeup. It in truth was a leisure account
it. Look complex to far added agreeable from you! However, how
could we be in contact?
eia firms in kampala recently posted..eia firms in kampalaMy Profile

Reply

Frieda January 26, 2016 at 11:50 AM

I was hoping that after it hit zero that this thread would just close but I guess that’s
just hopeful thinking. Maybe next time.
Frieda recently posted..FriedaMy Profile

Reply

heating January 28, 2016 at 10:41 PM

Right here is the perfect website for anybody who wants to understand this topic.
You know a whole lot its almost hard to argue with you (not that I personally will need to…HaHa).

You definitely put a brand new spin on a topic that’s been written about for decades.

Excellent stuff, just excellent!
heating recently posted..heatingMy Profile

Reply

โน๊ตเพลง สรรเสริญพระบารมี March 21, 2016 at 12:25 AM

The high output temperatfure enables these mobile car wash machines tto clean more efficiently and quickly.

What similarities do you see between what you envisioned and the descriptions provided.
Flat palm, roll finger and negative are some of the different fits too
the glovs in any soccer equipment and this is indicative of the stitching and fit.
โน๊ตเพลง สรรเสริญพระบารมี recently posted..โน๊ตเพลง สรรเสริญพระบารมีMy Profile

Reply

Interim management March 24, 2016 at 10:49 AM

It’s remarkable to pay a quick visit this website and reading the views of all colleagues concerning this paragraph, while I am also eager of getting experience.
Interim management recently posted..Interim managementMy Profile

Reply

Nolan March 24, 2016 at 1:14 PM

Asking questions are really nice thing if you are not understanding anything
entirely, however this piece of writing provides nice understanding even.
Nolan recently posted..NolanMy Profile

Reply

Noemi March 24, 2016 at 1:23 PM

Bungou Stray Dogs Online
Noemi recently posted..NoemiMy Profile

Reply

office equipment rental los angeles May 11, 2016 at 6:47 AM

extended familyrevolting disgustingDowntownextended family five hundredextended familyLoswxtended familytwofive hundred nuclear familyAngelesfive hundred, developersextended familytwo extended familyrevolting disgustinghasrevolting disgustingtwo five
hundredtworevolting disgustingstoppedrevolting disgustingtwo some of
the five hundredtwoextended familynewrevolting disgustingnuclear familytwofive hundred
development initiativestwo five hundrednuclear familyrevolting disgustingortwo five hundredtworevolting disgustinghasfive hundred five hundredtwocanceled
utterly five hundredtwoextended familyrevolting disgustingtheirrevolting disgustingextended familytwofive hundred five hundredtwoplansnuclear family five
hundrednuclear familyrevolting disgustinhgfornuclear familytwo construction in the meanwhile resulting from fie hndredextended fmilyrevolting disgustinglacktwofive
hundred of available twonuclear familyrevolting disgustingfinancingextended familyfive hundred and decrease
extended familyrevolting disgustingintwofive hundred revvolting
disgustingdemandrevolting disgustingnuclear family extended familyrevolting disgustingfornuclear familytwofive hundred five hundredtwonuclear familyrevolting disgustingretailnuclear familyfive
hundred, residentialrevolting disgustingtwo extended familyevolting
disgustingandrevolting disgustingnuclear familytwo workplace areas.
office equipment rental los angeles recently posted..office equipment rental los angelesMy Profile

Reply

icon ventures June 4, 2016 at 11:51 AM

Venture capitalist Peter Thiel, however, has taken it a step
up–by creating several corporations with Tolkien-inspired names and using
them to hold shares of Facebook stock. Currently,there are over 100 Venture Capitalists in Singapore.
Also additionally carry on the main oversight with three full-time owners.
icon ventures recently posted..icon venturesMy Profile

Reply

Leave a Comment

CommentLuv badge

Previous post:

Next post:

Page 1 of 11