A common mistake I find people make is using credit cards for everyday purchases (groceries, gas, restaurants) and not paying off each month. Questions: The gas you bought last month are you still using? Are still eating your meal from Applebee's?
Don't get me wrong using your credit card for everyday purchases is OK since some receive some type of incentive (airline miles, cash back). However, when you start carrying a balance from previous purchases your balance starts to build up.
I had one client use a credit card to buy gas when filling the tank was $60 or more. After doing this for a year or so they had a balance of over $6,000. The couple made good money it was just more convenient to buy gas that way. The mistake they made was not paying off balance every month like they intended.
What they started doing were two things:
1. They stopped using credit card and pay cash for gas
2. They started paying $300 or $400 a month instead of minimum
Anyone can do this it just takes a plan and discipline.
I hope this helped some people out there.
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