I recently overheard this at the coffee shop:

Man: My wife’s credit card got stolen the other day.

His friend: That’s awful! Did you report it?

Man: Nope. Because the thief spends much less than my wife.


The holidays can wreak havoc on our credit cards. However, you can use credit the right way, which brings us to to Action Step #7: Credit Management.

You probably already know these tips but they’re worth repeating:

Pay Promptly

Make sure you make your payments on time. It will strengthen your credit score and make getting a loan easier in the future. Plus, it will help you pay off your debt faster because you’ll avoid being charged late fees.

Pay More Than the Minimum

Paying off credit cards with only the minimum payment will delay paying them off completely. When you pay extra, it can reduce the principle balance faster and save money on the interest charges over the years.

Monitor Debt to Income Ratio

If you have too much debt, credit card companies and other lenders won’t be as willing to loan you money. You’ll also be charged a higher interest rate to get a loan. One way to address this is to make sure your home payment (first and second mortgage) isn’t more than twenty-five percent of your income. Also check your credit reports regularly and resolve any errors.

Using credit responsibly is part of a sound financial plan. Our goal here at Matson & Cuprill is to help you balance everything so you can live a worry-free life. Call us today at 513-563-PLAN (7526) or book online for your 2020 financial strategy.

More tomorrow about how to keep your credit manageable!

Dan Cuprill, CFP®