Be Very Careful If You or Someone You Know is Relying on Credit

Disclaimer: You know I hate outstanding credit. I have spoken about it many times. However today I will talk about something that you should know.

The banks and credit unions have been cutting way back on lending due to the economy. Too many people are filing for bankruptcy. Too many people are only paying the minimum balances. Interest rates on credit cards have skyrocketed. The banks have been limiting the amount you can borrow on your cards and in some cases they have cut the cards off entirely. The days of no interest for so many months is just about non-existent.

I see all over You Tube and elswehere online that people are buying their food with these cards. Why are they not using the food banks if money is so tight that they can’t buy food? I am even seeing people buy food with Buy Now Pay Later or taking a Payday loan. They are the worst loans ever. It is almost umpossible to get out from under them.

Do I like the fact that these people have put themselves in this position? No, I don’t but neither do I want to see their families starve! Parents are just eating one meal a day so that they can feed their children.

Credit cards became too easy to get and so many people have a wallet full of them. I can’t tell you how many times I have been at the grocery store and had someone in line in front of me have many cards declined. They just keep trying each card until one of them works or they have to leave without their food. If they are capable of working, why aren’t they getting a second part time job? I have paid for seniors who are in their 70’s and 80’s and have had this happen. I will pay if their bill is under $50. and they are buying basic food. I will not pay for junk. I have relatives who live on Social Security and I know how hard it is to do. It is a shame that so many seniors are in this position. Why are they in this position? I guess they didn’t save any money or they were in such a low paying job that they could only pay their basic expenses or they spent their money before they got it so lived on credit their entire lives so they were never able to get ahead. But I do not want them to go hungry.

It is a shame in this country that so many people are stealing their food(one of the many reasons food costs are going up) or going hungry. But it is not going to get any better any time soon. I have told you before that during the Carter administration when we had such high inflation that it took almost 10 years for the prices to come down and the prices never came down to what they were. I had small chidren when this happened. We lived on one income. Food was expensive. I made our $80. a month budget work to pay for food, toiletries, cleaning supplies and toilet paper. I bought all scratch food with the exception of baby food. I would buy a few jars but then my FIL started filling up a closet full of baby food for us. He owned a business up the road from us and he would stop on the way home with those gifts. I never asked him to but he would even come in if I wasn’t home(he had a key) and put the food away in the closet. Then I would come home and find more baby food. This is why I pay it forward even today. I would stretch meat in everything and do some meatless meals each week. Every penny was stretched on everything. I washed diapers and hung them to dry. I only purchased disposables to use when we went out and I purchased them cheap at a warehouse club called GEX. We were frugal from day one of our marriage. I always have paid cash for food unless I order online and that bill is paid when it comes each month.

So I think most people could afford their food if they just stuck to the basics and did everything they can to make it stretch. Don’t put food on credit cards. Buy what you can afford or go to the food banks. And then stretch that food farther than you ever thought it could stretch.

Sorry I’ve rambled but people need to know that their credit cards may get cut off. Then you will have a real emergency. The banks can’t keep losing money or they will go belly up. So start putting a few dollars away for that emergency.

Do what you can to stay afloat but stop using credit. Get yourself out of debt even if you can only pay a few extra dollars above the minimum each month. Remember every dollar counts! Don’t wait until the banks force you into having no credit. You will ruin your credit rating also and that will affect buying a home or even getting a car loan.

I know I am probably talking to the choir but I do have some new people on here that may need to hear this. Also feel free to link this blogpost to someone who may need a wakeup call on this.