FINANCIAL THINGS PEOPLE SAY THAT HURT THEMSELVES AND OTHERS
LIE #1 - We pay off our credit card each month in full!
Have you ever noticed how many people use credit cards on a daily basis? In today’s digital age, it is almost impossible to not have some form of credit card. You need a credit card for most subscription services and to book or buy anything online. Have you ever tried to rent a car without a credit card? What about when you get a new cell phone, hook up your internet or need basic utilities -yep you need a credit card.
With all this usage, it always amazes me when I hear a room full of people claim they always pay off their credit cards in full each month! Really? Everyone? Always? Come on people, there is no way I only know people that are financial rockstars. Even I can admit that I have had months when I have carried a credit card balance. Not every month and not all the time, but life happens to all of us. Don’t get me wrong, I know there are people out there that actually do pay off their credit cards each month and use them for points, but they are definitely not the majority.
The truth is, Canadians have reached the “significant milestone” of having outstanding credit card balances exceeding $100 billion. This has come at a huge cost both financially and mentally for many people. In a society that is working so hard to improve the stigma around mental health. Why are we still not addressing the role that financial health is having on people's mental and emotional well being? The amount of stress, fear and shame that people already have around their debt is overwhelming. Then you add the social pressures of feeling like you are the only one that does not have it all together and you end up with the perfect storm for all the financial lies we tell ourselves and others.
So, here’s some advice. Next time you’re in a room full of self proclaimed financial rockstars. Instead of feeling bad or joining in on the I pay off all my debts conversations, maybe it's best to stay silent and sarcastically think - I sure hope someday I get to meet someone who actually contributed to this mysterious $100 billion credit card debt!
Signed Cheapo Jo - who actually has had a credit balance!
Jodie Stauffer, CFP is a wife, mother and Certified Financial Planner. "Being CHEAP has always been in my DNA. But let me tell you, juggling my business, household finances, financial goals with the needs or more accurately WANTS of my daughters, while staying on a budget has not always been smooth sailing." Cheap by Choice is about finding what's