Don’t Leave Home Without It?

Credit card companies were given 15 months to clean up their act and eliminate unfair and predatory practices. But they’ve taken that time to speed up the process of screwing over consumers. Interest rates, already high, are up an average of 20 percent industry-wide. Even customers who pay on time are seeing higher rates.

That was not unexpected. And it shouldn’t be affecting you, if you’ve been following my advice all these years.

Here’s the deal:

If it’s going to be worth less after you buy it, or if you’ll have forgotten all about it by this time next year, pay cash. That includes stereos, vacations, dinners out, clothes… you get the idea.

Use credit only for things that are going to appreciate in value — such things as houses, investments, or an income-producing side business.

This goes back to the one way you can possibly hope to become wealthy: Earn more than you spend. Then save and invest the rest. You won’t get rich with debts and liabilities hanging over your head.

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