6. Manage your credit
‘Money is just the poor man’s credit card.’
MARSHALL MCLUHAN, Canadian writer and theoretician
It’s well worth exploring how well you use credit. We’ll also look at the value of credit as a means of smoothing over short-term cashflow issues.
Credit is simply another word for debt, and a debt card sounds a lot less palatable, doesn’t it? So just reflect for a moment on how you tend to use your credit, sorry, debt card. Chances are you’re using it when you can’t afford to buy something outright, and so you buy the item on credit. But when you don’t have the money in your current account this month to pay for the item in question, does it occur to you to consider whether you’re any more likely to have the money next month ...