Only an Idiot Buys a Plasma TV on Payments

With the holidays around the corner, I felt impelled to break my series on found money and write today's post. Simply, never use credit cards. Right now, you know who I am talking to. If you have a rewards card that earns points and you pay it off every month, without exception, then continue. But if you are carrying a balance or have ever carried a balance on your credit cards, your best bet financially is to use prepaid or debit cards for your plastic. Trust me on this one. I know. I can provide details in future posts, but for now, let me tell you a story.

My first job after getting my accounting degree was as a bank auditor. I was tasked, among other things, with reviewing the bank's loans, or customers. I would then present my findings to a team of the bank's highest officials. I was young and they had decades of banking/lending experience. During one such presentation I remember presenting that a customer had borrowed about $3,000. The loan officer obviously got the proper documentation from the borrower on their ability to repay. But what struck me as odd, especially since the review team very much locked on to it, was that the purpose of the loan was to buy Christmas gifts! Forget the ability to repay, the fact that a person was borrowing $3,000 for presents was absolutely hilarious to the review team, in a sad way.

Twenty years have gone by since that time and I can't remember but pieces of the loans I reviewed for that bank, but that loan I recall easily. And it was by far the smallest that I can recall. I'm not against people buying presents to enjoy Christmas, but if you can't buy your presents without putting them on a credit card, you are broke! I'm not going to paint it any other way because you don't need it painted any other way. Do yourself a favor, this holiday season, if you have to put presents on a credit card, please make a point to keep it low. Bring the family together and explain to them money is tight this year and you are going to keep the purchasing to a minimum. No big electronic purchases this year. (Do not buy presents for Mom and Dad.) Figure out ways to enjoy the holiday season for free. Take the family to the park. Find a Christmas play. Many local churches do these annually. But think of your long term financial future with every purchase.

And remember the title. It was stolen from one of my favorite prosperity individuals, Randy Gage.