A good comment from someone jogged another area where you need to have a look at your financial resume and that is in the usage of your credit cards, and do you have them under control?
When I first graduated from University for the first year or two I actually carried a balance on my credit card (yes, hang my head in shame, but no one ever taught me about this stuff, if they had, I wouldn’t have done it honest). Now it wasn’t a large balance, but it was enough to be a drag on my life. This was a mistake but I learned from my mistake.
I no longer carry balances on credit cards, and ensure I never have to pay the high interest rates most credit cards charge, so that is a good thing, I’ll give myself a green star for that one.
I do however have FAR too many credit cards. I went to the Canadian Credit check folks and got a list of all the folks who have open credit files on me (with zero dollar balances) and it is scary. These things are dangerous because:
- Fraud on these accounts is more likely, just because there are a lot of them
- I have access to this credit, and quite frankly, I don’t trust myself on impulse buying or worse still fooling myself into some bizarre get rich scam, which causes me to draw on these credit facilities.
I need to get rid of all of the credit facilities and cards I do not need, so black mark on me for that one too!
On your financial resume, include a short-term debt section and how you deal with it, and whether you think it is under control, which is important. If your short-term debt is out of control, it will effect (affect?) your long-term debt eventually.