Who Says We Need to Have Credit?

In the world we live in today it has become generally accepted that there are certain things we all must have, even as we reach our young adult life. Some of these may vary from place to place, but for the most part everyone accepts that we all must have the following to survive:

  • A source of income
  • A place to live
  • A way to contact others and stay in touch with the world
  • A way to get from one place to another
  • And food and water

Now, anyone who reads this list might disagree with some of the items that I’ve identified as being a list of bare essentials necessary to survival today, but that’s something one might discuss another time. What I’ve identified is merely a list of what we would find common today in just about every environment for what would be required to begin living their own life.

When you look at this list what is the one thing that everything else hinges upon? Income!

Once we have a source of income, the world is our oyster, so to speak. The unfortunate thing here is that most of us are lead to believe that as long as we have a source of income we can always borrow more for whatever we want and pay back what is owed.

However, when we decide to borrow money before we have earned it then we are no different than having placed ourselves into indentured servitude to that organization. We must now go to work every day to pay back first what we now owe them until our debt is paid off, and our money is no longer ours.

In today’s financial organizations they have created the financial credit system we all are aware of. This is something that was concocted by the banks to identify which clients are better prospects when potentially loaning money to. This system was not initially created with the intention for clients to build up a credit score based upon what they’ve borrowed. It was built around a base of income, expenses, an initial deposit, and how long was the money being borrowed needed.

Ever wonder why we get those letters from the credit card companies that include four or five checks to write against our credit card? Oh yeah, and magically that credit limit has now increased as well! Or, what about the influx of all the new credit cards we’re suddenly pre-approved for showing up in the mailbox! Here’s another one I love, when the personal loans from $5,000 to $50,000 are pre-approved as well.

How do these organizations know that we might have an interest or that we could even qualify for this? Next, why would we want to consider applying for such stuff even? Finally, is this even really needed?

My son, to purchase a recent used car needed me to co-sign on the loan because the bank said he didn’t have sufficient credit for them to give him a loan. Actually, based upon his income and expenses he just didn’t have sufficient funds saved to provide a reasonable down payment to avoid me having to co-sign.

When you consider all of what’s part of the formula for determining one’s credit it will basically still come down to how solid is your monthly income, how much are you paying out in monthly expenses, what’s left over to pay this additional expense, and what defaults have there been in your past on other loans?

Okay, so the banks are all out to get us, how do we beat this system?

To begin with we start with recognizing where are we at. Forget about building up a credit score because that’s only something the financial system wants us to use so that we’ll borrow more money.

Let’s figure out how we can become free from what they’ve created. First of all, do we owe them anything? How much?

Let’s set up a way to pay off any debts as quickly as possible while also saving up some extra funds for ourselves so that we can avoid going back to them for anything. While we’re doing this payoff we’ll also live within our means without purchasing anything new. This shouldn’t last long based upon what we owe, and once we’re debt free we can plan to replace what is needed and pay in cash.

What works especially well while one is taking control of their finances is to also have an additional source of income. There are so many ways to make extra money now a days that it’s truly unbelievable. What we must do is investigate the many opportunities and identify what would provide us the greatest opportunity, what best suits our ability, and what also provides us the greatest benefits.

As an individual you might be willing to just get a second part time job working for some other boss. I’m of the opinion that the best opportunity for everyone is to have their own independent business where they can create a residual, or a pipeline, income!

This is something that we can keep and might even decide to do on a permanent basis once all finances are taken care of.

The options that are available in this world are at our fingertips and are for us to find!

Believe in yourself!


Warren La Duke


Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s