It's Decided, I'm Cutting!!

  Last night, after watching Dave Ramsey's Dumping Debt DVD, I made my decision to cut up three of the four credit cards that I have.  I am very excited.  Once I get this last one paid off I will be cutting it up as well.  I don't EVER want to go back to debt again.

  I jotted down a few myths about money that Dave debunked in the DVD and I'd like to share them with you.  There were several that I didn't know were myths!!

First Myth
If I loan money to a friend or relative, I will be helping them.
TRUTH
The relationship will be destroyed.  You are now their master and they are your servant (until the debt is repaid).  See Proverbs 22:7

Second Myth
By co-signing a loan, I am helping a friend or a relative.
TRUTH
The bank requires a co-signer because the person isn't likely to pay.  So, be ready to pay the loan and have your credit damaged because you are on the loan.

Third Myth
Car payments are a way of life and you'll always have one (I think I've always kinda thought this way).
TRUTH
Staying away from car payments by driving reliable used cars is what the typical millionaire does.  That is how they become millionaires.

Fourth Myth
I'll take out a 30 year mortgage and pay extra, I promise.
TRUTH
Life happens.  Something else will always seem more important so almost no one pays extra every month.

Fifth Myth
You need a credit card to rent a car or to make purchases online or by phone. (I thought this too)
TRUTH
A debit card will do all of that, except for a few major rental companies.

Sixth Myth
I pay my credit card off every month with no APR.  I get brownie points, air miles and a free hat!! (I bought this one too)
TRUTH
Dun and Bradstreet found that when using plastic, you spend 12-18% more because spending cash HURTS.

  There you have it, several credit myths debunked!!  Let me know if you've bought into any of these. 

Sara