Why is your ‘Credit Card’ payment NOT a Bill?

By David Wright

When people talk ‘money’ they invariably end up complaining about the number of bills they need to pay. When they start listing them all, it’s not uncommon for the list to include ‘Credit Card’, but is ‘Credit Card’ really a ‘Bill’?

I find it really hard to comprehend that anyone could honestly think it is!


Bills are repeating services that you pay for – such as insurance, telephone, electricity, rates, registration, internet connection, car servicing and so on.

For most people, ‘Credit Card’ does NOT fit into that list!

If you use your Credit Card to pay your rates, electricity, telephone, insurance, etc. and then refer to your Credit Card payment as a bill, you are probably okay in saying that, but if your Credit Card is used as ‘Magic Money’ to pay for ‘Stuff’ and ‘Experiences’ that you don’t have available funds for at the time, then I would strongly argue that when you pay your Credit Card you are not paying a bill at all!

You are actually paying off purchases you made in the past, hoping you will be able to pay for them with money you earn in the future! Using any method of purchasing something today that you intend paying for with future earnings is really not smart unless that purchase is actually going to earn you more money than it costs you.

Think about it… if you are struggling each week to pay for the things you need to do, and this week you purchase something you want using your Credit Card, how could it be possible that in the future you will be able to pay for the basics you currently struggle to pay for each week? You now have less spare income because you also have to pay off the purchase that went on the Credit Card!

It looks like this…

Your Income = $800/wk

Your Bills = $770/kw

Your Surplus =$30/wk

Your Financial Experience = Money is tight!

You purchase a ‘Thingamajig’ for $1,000 on your Credit Card and now have repayments of $25 a week.

You are now very close to being upside down and life is even tighter than before! You now must pay for your Bills AND that ‘Thingamajig’ plus added interest, which will just make the pain worse.

In this scenario your Credit Card payment is definitely NOT a Bill…. However, it IS the cause of a lot of money stress that you could have easily avoided if you had a Spending Planner who was giving you some financial accountability and helping you to better plan your finances!

Here’s a challenge for you… Have a look at your Credit Card balance and see if you can identify how much of it is actually from Bills and how much is from purchasing ‘Stuff’ you just didn’t have the cash to pay for at the time. You might get a bit of a surprise!

I’ll leave you with that thought.

If you think taking control of your money is all too hard, get a Spending Planner to help you. You’ll find trained Spending Planners who are extremely passionate about helping people like you. The benefit will be far more than the outlay and what you learn during the process will benefit you for the rest of your life! Simply go to www.findaspendingplanner.com

On the other hand, if you already have a Spending Plan, your finances are not under stress and you know what I’m talking about, you may be interested in joining the team. If you would like to feel the satisfaction of helping someone else turn their life around and create your own business in the process you might want to consider becoming a Spending Planner too. Find out more, go to https://spendingplannersinstitute.com/become-a-spending-planner

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