IN NEW YORK AND PARIS. HE WAS RESPECTED, ADMIRED, AND ACCLAIMED AT SCA" D. WE HAVE AN ALL NEW "ASK ASA" FOR YOU THIS MORNING ... AND TODAY ... ASA'S TALKING ABOUT CREDIT CARD DEBT. IT CAN BE SO DIFFICULT TO MAKE ENDS MEET WHEN YOUR INCOME FALLS ... BUT EXPENSES CLI. MB OUR CONSUMER REPORTER ASA AARONS SMITH EXPLA IN ... WHY CREDIT CARDS ... ARE A *RISKY WAY TO CLOSE THE GAP. BTDE IS UNIVERSAL. WE ALL KNOW IT. WE ALL HAVE IT, AND WE UNDERSTAND IT. BUT CREDIT EXPERTS SAY IT'S IMPORTANT TO CONTROL OUR DEBT - RATHER THAN ALLOWG IN OUR DEBT TO CONTROL US. RICHARD REEVE, CONSUMER CREDIT COUNSELING SERVICE OF THE SAVANNAH AREA "IT ABSOLUTELY MAKES SENSE TO USE CREDIT AT CERTAIN TIMES OF OUR LIFE FOR THOSE BIGGER PURCHASES. THE PROBLEM, AND WHEN CREDIT AND DEBT TURN INTO ISSUE S, IS WHEN WE'RE USING IT TO RELY ON FOR SUPPLEMENTING OUR INCOME." IT'S A PROBLEM WHEN WE USE CREDIT LIKE A CRUTCH TO GET BY MONTH AFTER MONTH, ESPECIALLY WHEN WE USE O NE CREDIT CARD TO MAKE PAYMENTS ON ANOTHER. RICHARD REEVE, CONSUMER CREDIT COUNSELING SEICRVE OF THE SAVANNAH AREA "ONE OF THE WORST THINGS WE CAN DOS IUSE BORROWED MONEY TO PAY OFF BORROWED MONEY, WHICH KEEPS THAT CYCLE AND DEBT TRAP GOIN" G. TO BREAK THE CYCLE, YOU HA VE TO REDEFINE YOUR RELATIONSHIP WITH YOUR MONEY.OU Y HAVE TO UNDERSTAND WHAT YOU EA RN AND WHAT YOU SPEND - AND DECIDE REALISTICAL LY WHERE YOU CAN SAVE TO BALANCE YOUR BUDGET WITHOUT TURNING TO CREDIT CARDS. OT(S FUL RICL)HARD REEVE, CONSUMER CREDIT COUNSELING SERVICE OF THE SAVANNAH AREA "WRITE DOWN YOUR MONTHLY INCOME DOWN URYO MONTHLY EXPENSES. AND THE GOAL IS S TO HAVE THAT INCE OMHIGHER THAN THOSE EXPENSE" S. REEVE KNOWS SOME THINGS E AR NOT EASY TO CUT - HOUSING, UTILITIES, TRANSPORTATION, INSURANCE. OTHER THINGS -FOOD, CLOTHING, ENTERTAINMENT - OFFER YOU MORE FLEXIBITY. LI (SOT FULL) RICHARD REEVE, CONSUMER CREDIT COUNSELING SERVICE OF THE SAVANNAH AREA "WHEN IT COMES TO BALANCING THE BUDGET, IT'S NOT THE MOST EXCITING THING TO SAY, BUT THERE ARE ONLY TWO THINGS WE CAN DO: BRING IN MORE INCOME AND REDUCE OUR EXPENSES." REEVE LIKES THE IDEA OF TRACKING ALL YOUR HOUSEHOLD EXPENSES, EVEN FOR A FEW WEEKS. EVERY TE IM
Ask Asa: How to avoid high credit card debt
It isn't easy to make ends meet when income falls, and expenses climb. But Consumer Reporter Asa Aarons Smith says credit cards are a risky way to close the gap.
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Updated: 10:24 AM EST Jan 20, 2022
Debt is universal. We all know it. We all have it, and we understand it. But credit experts say it's important to control our debt — rather than allowing our debt to control us. "It absolutely makes sense to use credit at certain times of our life for those bigger purchases. The problem, and when credit and debt turn into issues, is when we're using it to rely on for supplementing our income,” said Richard Reeve, Consumer Credit Counseling Service of the Savannah Area.It's a problem when we use credit as a crutch to get by month after month, especially when we use one credit card to make payments on another. "One of the worst things we can do is use borrowed money to pay off borrowed money, which keeps that cycle and debt trap going," Reeve said.To break the cycle, you must redefine your relationship with your money. You need to understand what you earn and what you spend — and decide realistically where you can save to balance your budget without turning to credit cards."Write down your monthly income down your monthly expenses. And the goal is s to have that income higher than those expenses," Reeve suggested.Reeve knows some things are not easy to cut — housing, utilities, transportation, insurance. Other things —food, clothing, entertainment — offer you more flexibility. "When it comes to balancing the budget, it's not the most exciting thing to say, but there are only two things we can do: bring in more income and reduce our expenses," Reeve said.Reeve likes the idea of tracking all your household expenses, even for a few weeks. Every time you buy a pack of gum or pay a bill, write it down — so you'll know where every penny is going and have the insight you need to reduce some of your spendings.
Debt is universal. We all know it. We all have it, and we understand it. But credit experts say it's important to control our debt — rather than allowing our debt to control us.
"It absolutely makes sense to use credit at certain times of our life for those bigger purchases. The problem, and when credit and debt turn into issues, is when we're using it to rely on for supplementing our income,” said Richard Reeve, Consumer Credit Counseling Service of the Savannah Area.
It's a problem when we use credit as a crutch to get by month after month, especially when we use one credit card to make payments on another. "One of the worst things we can do is use borrowed money to pay off borrowed money, which keeps that cycle and debt trap going," Reeve said.
To break the cycle, you must redefine your relationship with your money. You need to understand what you earn and what you spend — and decide realistically where you can save to balance your budget without turning to credit cards.
"Write down your monthly income down your monthly expenses. And the goal is s to have that income higher than those expenses," Reeve suggested.
Reeve knows some things are not easy to cut — housing, utilities, transportation, insurance. Other things —food, clothing, entertainment — offer you more flexibility.
"When it comes to balancing the budget, it's not the most exciting thing to say, but there are only two things we can do: bring in more income and reduce our expenses," Reeve said.
Reeve likes the idea of tracking all your household expenses, even for a few weeks. Every time you buy a pack of gum or pay a bill, write it down — so you'll know where every penny is going and have the insight you need to reduce some of your spendings.
