Steve gets his first credit card – MoneySmart Rookie

About six months after I started working I thought it was time for a holiday with my girlfriend I saw that I could apply to increase my
credit card limit to five thousand dollars. I filled out a few forms online
and then I got the credit increase. How easy was that! So we took a holiday together to Los
Angeles. We did all the touristy stuff. It was awesome! I used the card to pay for everything and planned to come back home and pay it off a
bit each week. But I lost my job. And then I couldn’t make the repayments.
The interest was so high. I spoke with the lender as there was a
change in my circumstances since I took out the credit card. I also saw a financial counsellor who helped with the repayment plan. I didn’t want a bad credit rating to
affect my ability to take out a loan in the future. Anyhow now I don’t sign anything unless I know
what it means. I am also trying to build up a good
savings buffer, so I don’t have to rely so much
on credit.


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