Digest

This episode of the Money Love Podcast, hosted by Money Coach Page Pritchard, delves into the common mistakes people make with credit cards. Page emphasizes that credit cards are neutral tools, not moral sins, and encourages listeners to consider their financial goals and how credit cards fit into their strategy. She highlights the importance of viewing credit cards as tools, not free money, and stresses the need to track spending and ensure you have the funds to pay off the balance in full. Page also addresses the credit card float, overutilization, 0% balance transfers, and the importance of negotiating with credit card companies. She provides practical tips and strategies for using credit cards responsibly, including paying off the statement balance within the grace period to avoid interest charges and keeping utilization below 30% to maintain a healthy credit score. The episode concludes with a reminder about Page's upcoming four-day live workshop, "Unburdened," designed to help individuals overcome debt and achieve financial freedom.

Outlines

00:00:00

Introduction

This Chapter introduces the Money Love Podcast and its host, Page Pritchard, a Money Coach who helps people transform their relationship with money. The episode focuses on credit card mistakes and how to use credit cards as a financial tool to benefit your finances.

00:00:18

Credit Card Mistakes

This Chapter dives into the 10 biggest credit card mistakes Page sees people making. She emphasizes that credit cards are neutral tools and that responsible use can benefit your finances and credit score. Page encourages listeners to view credit cards as tools, not free money, and stresses the need to track spending and ensure you have the funds to pay off the balance in full.

00:01:19

Unburdened Workshop

This Chapter is a reminder about Page's upcoming four-day live workshop, "Unburdened," designed to help individuals overcome debt and achieve financial freedom. The workshop starts on June 11th and costs $29, providing access to the workshop, workbook, and lifetime access to the content.

00:03:05

Credit Card Mistakes: Viewing Credit Cards as Moral

This Chapter explores the first credit card mistake: viewing credit cards as a moral issue. Page argues that credit cards are neutral tools and that using them doesn't reflect a person's character or intelligence. She encourages listeners to detach morality from credit cards and view them as a tool in their financial toolbox.

00:08:38

Credit Card Mistakes: Not Defining Your Credit Card Use Spectrum

This Chapter discusses the second credit card mistake: not defining your credit card use spectrum. Page emphasizes the importance of deciding how credit cards will fit into your financial goals, whether you choose to use them strategically, minimally, or not at all.

00:11:31

Credit Card Mistakes: Viewing Credit Cards as Free Money

This Chapter addresses the third credit card mistake: viewing credit cards as free money. Page clarifies that credit cards are loans from banks and that using them requires repayment with interest. She advises listeners to avoid using credit cards if they struggle with viewing them as free money.

00:13:59

Credit Card Mistakes: Using Credit Cards While in Debt

This Chapter explores the fourth credit card mistake: using credit cards while in revolving debt. Page advises against using credit cards until you've gotten a handle on your debt, as it can hinder progress and create a sense of taking two steps forward and one step back.

Keywords

Q&A

• What are the 10 biggest credit card mistakes Page Pritchard identifies in this episode?

  The 10 biggest credit card mistakes Page identifies are: 1) Viewing credit cards as a moral issue, 2) Not defining your credit card use spectrum, 3) Viewing credit cards as free money, 4) Using credit cards while in debt, 5) Not tracking credit card spending, 6) Being in the credit card float without realizing it, 7) Overutilizing credit cards, 8) Thinking you need to pay interest to show credit card use, 9) Using 0% balance transfers incorrectly, and 10) Not knowing that most things with your credit card are negotiable.

• How can I use credit cards responsibly to benefit my finances and credit score?

  To use credit cards responsibly, Page recommends viewing them as tools, not free money, tracking your spending, ensuring you have the funds to pay off the balance in full, keeping your utilization below 30%, and paying off the statement balance within the grace period to avoid interest charges. She also encourages negotiating with credit card companies to potentially lower interest rates, waive late fees, or adjust payment dates.

• What is the credit card float and how can I avoid it?

  The credit card float is when you rely on your credit card to cover expenses between paychecks, essentially living paycheck to paycheck. To avoid the credit card float, Page suggests ensuring you have enough money in your checking account to pay off your credit card balance in full and cover all expenses until your next paycheck.

• What is credit utilization and how does it impact my credit score?

  Credit utilization is the percentage of your available credit limit that you are currently using. It is a significant factor in your credit score, with a higher utilization generally indicating a higher risk to lenders. Aim to keep your utilization below 30% and ideally around 10% for a positive impact on your credit score.

• What are 0% balance transfers and how can I use them effectively?

  0% balance transfers allow you to transfer a balance from another credit card to a new card with a 0% interest rate for a specific period. This can be beneficial for saving money on interest, but it's crucial to use it strategically and have a plan to pay off the balance before the promotional period ends. Avoid using them as a bandaid solution to avoid dealing with debt.

• What is the Unburdened Workshop and how can I participate?

  The Unburdened Workshop is a four-day live workshop hosted by Page Pritchard, designed to help individuals overcome debt and achieve financial freedom. The workshop starts on June 11th and costs $29, providing access to the workshop, workbook, and lifetime access to the content. You can save your spot by visiting overcomingoverspending.com/debt.

Show Notes