How to arrange guaranteed income reduction next year
Most of us hope for an increase in our paycheque next year - which sometimes happens, but in recent years expecially ... sometimes it doesn't.
There's an easy way to ensure that you'll have less income to use for your family's operation, though.
Suppose you've had a "credit" card (really a "debt" card) and up until now you've paid off the balance outstanding every month by the due date.
An easy way to guarantee a reduction in your income available for operations next year is to buy a lot of stuff over a short term, e.g. Christmas, using the card, with such a large amount outstanding that you can't pay it off in full every month.
That'll mean that they start charging interest on the unpaid balance ... and I think that once that liability begins, the date at which the interest starts to accrue is on the date that you buy the goods. If you use it for cash advances, it always accrues from the date that you receive the money.
If you're using a regular credit card, their regular rates are about 15 - 18% annual rate.
If you're using a store-issued card (have you noticed how enthuiastic they are about issuing them?) their regular rates usually run 25 - 28% annual level.
That means that, as of the coming months, part of your hard-earned income will be going to pay those high rates of interest.
As each dollar only works once - that means that there'll be fewer left in your pocket to use to pay other bills and buy other stuff.
That is - effectively, you arranged a pay cut for yourself.
Same result if you carry balances on your card currently, and increase them to a higher level.
If you don't boss your dollars - they'll boss you!