CNN iReport

I was pretty surprised to learn (I think from a commercial, which may be skewed, but we'll go with it anyways.) that the average person carries between six and eight credit cards in thier wallet. I'm sure whoever is doing these surveys doesn't realize that most of these cards don't fit in an average wallet, but no doubt the numbers probably aren't too far off.

I'm just thankful that I learned before my spending got out of control, that credit cards will NEVER bring about any good. Sure I receive plenty of coupons and offers in the mail, but do I really need another blouse? Or do I really need to open another credit line when I don't use the ones that I have?

But this is one of the ways that Americans have landed themselves into a trap. Thankfully, I'm no longer paying on any credit cards, (I have never paid a dime of interest on a store card) and I stand by my newfound principles, that if it can't come out of our checking account, we can't afford it. I have actually elimited cash from my wallet.

Some will argue that I'm working in an opposite as suggested manner, but this is what works for us. I keep my checkbook balanced religiously, and take advantage of my online banking daily. I also round up my purchases, (which with no cash are on my debit card), and are continuing to build our "pad" in our account. This money, which stands near $1,600 this year, will eventually make it's way to our savings account to earn more interest. For now, I enjoy watching the number grow.

My point is that up until really this year, Americans used thier credit cards as though they are cash. Everyday purchases, such as gas, groceries, even fast food got put on a charge. Eventually, the amount that was paid towards the bill every month got smaller and smaller, while the purchases and intrest got larger and larger.

Now, and I say thankfully, everyone is forced to look closely at thier habits of spending. Was a new outfit really necessary, or was it just a feel good purchase? Did the water bill or electric bill really need to be put onto a credit card, or could it have simply been taken from the checking account?

Americans weren't just living beyond thier means. They were practically living double thier incomes. And in the end, everyone is looking around wondering why they are robbing Peter to pay Paul. For months, and maybe years, they racked the credit card debt as though it wasn't debt, but some kind of an extra pay check. Like a pay day advance. And then spent the checking as if they carried no credit card debt.

Now, after months of this practice, they are blaming the government due to lack of raises, and higher interest rates. I've posted about this in another blog, as well as touching on the mortgage industry.

I just find that the reasons that everyone is so forced to cut back now, is because of the months or years of living beyond thier means in the first place. Have a great day.